A loan broker is a third party that seeks out and negotiates a personal loan on your behalf. It can act as a go-between for both the borrower and lender.
Finding a personal loan yourself can take a lot of time, effort and stress. By using a personal loan broker, you needn’t waste time searching around for a loan by yourself. A broker can scour multiple products and help you find a loan that best matches your financial situation and requirements. You’ll also benefit from a single contact for the loan’s full term.
Personal loan brokers can help you with the full range of personal loan products lenders offer. Whether you’re planning a holiday or buying a new car, a personal loan broker can assist you with finding a suitable product. Brokers can be especially helpful for those with complicated situations or poor credit scores, who traditional lenders typically reject.
Personal loan brokers work in a similar way to mortgage brokers: they help you find the best deal on your loan. They search for a loan within their panel of lenders and try to find the loan best suited to your needs.
Once you sign up for their services, they will find a product from one of these lenders. Most personal loan brokers offer online applications and loan management, so there is no need to book an appointment or sign and post documents, which can save you time.
Personal loan brokers offer you convenience. They can find you the best loan option for your unique circumstances. They may be particularly useful if you have a bad credit score or trouble meeting the standard lending requirements at larger financial institutions.
Using a broker can help you maintain a good credit score by preventing unnecessary applications and potential rejections from multiple lenders. Brokers have a better understanding of the different lending requirements of various lenders, so they won’t recommend products you are likely to be rejected for.
A good example of a well-known credit broker is Monevo, which connects borrowers with loan providers to compare loans of up to £25,000.
Monevo works with multiple lenders so you can see quotes without doing hours of research. Its “soft search” facility means you can search through its panel of lenders without affecting your credit score.
However, you’ll sacrifice some variety because you’ll be limited to Monevo’s network of partners.
The advantage is that Monevo’s free service lets you compare personalised and pre-qualified rates from its lending panel. It also cuts down the time it takes to look for a loan, especially if your credit is less than perfect.
Yes, it’s possible to get a personal loan with a quick turnaround by using a loan broker, especially if it’s an online broker like Monevo. Online brokers aim to make the loan process as straightforward and simple as possible. They remove many hurdles associated with applying for a loan through a traditional lender.
You can apply for a personal loan with an online broker within minutes and see which lenders will approve your loan application almost instantly.
Yes, you can still use a broker even if you have poor credit. In fact, using a personal loan broker can be a great way to determine your eligibility for a loan without further affecting your credit score. Many online loan brokers will compare a wide range of loans and lenders and may be able to find you a suitable loan regardless of how bad your credit score is.
| Response | |
|---|---|
| Interest rate | 35.66% |
| Monthly cost | 30.23% |
| Overall cost | 27.52% |
| I would not choose a personal loan | 21.51% |
| Flexibility on repayments | 16.86% |
| Level of early repayment charges | 14.24% |
| Don't know | 12.21% |
| Whether there's an arrangement fee | 12.02% |
| Provider reputation | 10.76% |
| Customer service | 9.69% |
| Other | 0.1% |
Using a personal loan broker can be a quick and stress-free way of helping you find the best loan to match your circumstances, particularly if you have bad credit. A broker can reduce the risk applying for a loan you won’t get accepted for, and you’ll even have help completing the application form.
However, many brokers only have access to a selected panel of lenders, not the whole market, and you might have to pay a fee for their services, so they won’t be the right choice for everyone. If you have good credit and are confident about choosing the right type of loan for your requirements, you might be happy to go it alone.
Find out how credit builder loans work and whether they are right for you
You can use a debt consolidation loan to make it easier to manage your existing debts and improve your credit score.
Looking to buy land but need a loan to do so? Find out if you can get a personal loan to purchase land.
Are you claiming universal credit and need to cover an unexpected expense? Find out how you can get an interest-free budgeting advance.
Clydesdale Bank offers competitive and flexible personal loans of £1,000 to £35,000 to be repaid over 1 to 7 years. Find out how other lenders compare.
Looking for platforms like Lendable? Compare example loans and terms from a selection of sites offering a comparable service.
Everything you need to know about this controversial form of lending. Learn how it works, the pros and cons, and the alternatives, so you can decide what’s right for your individual circumstances.
Learn the common reasons behind why personal loan applications are rejected and learn tips to improve your chances of being approved for a personal loan.
Arm yourself against identity theft or losing money to a scam by knowing the warning signs and how to spot a legit lender.
Find out how to apply for a loan after bankruptcy, and compare your options now.
