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Author: External 3rd Party
Independent Payday Loan Companies – How To Identify A Broker Site
Editor: The author of this blog has used the term 'Independent' refer to a direct lender as opposed to a loan broker.
When you take out a UK payday loan, you have two choices, you can opt for the services of a broker or you can go for a direct payday lender. In this post we are going to reveal how to tell independent payday loan companies from broker websites.
There are advantages to be gained by opting for a UK payday loan from a direct lender. For example if you use the services of a broker, you will not get the chance to research all the available lenders before you apply. You will often get presented to the lender chosen from a panel of payday loan companies by the broker and, while you do not have to finish the application, you will not know whether they are offering the best deal on the market. This is not to say that you may not want to use a broker if it is right for you. In some circumstances, especially when you have had credit refused, a broker may be a way that you can fill in just one application and have it considered by many lenders. The word of caution here is that when a lender has been presented to you, have a look around their site at what they are offering before you finish the application.
In the UK regulations states that any company that is only a loan broker must make this clear to the borrower. This is the first thing to look for when you visit a website. If you cannot find the information there, then there are some key phrases you need to look out for, this includes the likes of ‘the lender you are matched with’, ‘from lender to lender’, and ‘our list of payday lenders’. These are the sorts of phrases that indicate they are the broker. If a company is constantly talking about lenders, then this is something to be aware of. If you are still unsure you could always contact the company for the answers you are looking for.
When taking out a payday loan, it is imperative know whether they are independent payday loan companies or a broker. This will enable you to decide whether they are the right option for you.