BingoLoans are amongst the very few Short Term Loans Direct Lenders, what we mean by this is that when you apply for a loan with BingoLoans we will look at offering you a loan direct with ourselves but if we cannot offer you that facility we will try to find the next best loan for your needs by presenting your application to our large panel of lenders and other financial services providers.
What’s the difference between Short Term Loans Direct Lenders & Brokers?
A short term loan can be a lifesaver when you find yourself in a financial emergency. In this case, you have two options, either seek the assistance of a short term loan broker or go directly to the lender. Before making up your mind, you need to weigh up the benefits of each. And to do this, you need to understand the difference between the two.
Both direct lenders and brokers have several things in common. For instance, both will collect your financial status information to determine whether you are eligible for a loan or not. However, there are also a lot of differences that can help you distinguish between them.
A direct lender will give you feedback almost instantly after confirming your eligibility for a short term loan. The loan will be availed within minutes after approval. A broker, on the other hand, has to send your loan application details to several lenders. The aim is to match you with the most suitable lender. This entire process may take several minutes before you get feedback.
Level of Confidentiality
Direct lenders follow the regulations set out by the Financial Conduct Authority, meaning that they handle your information with a lot of confidentiality. The lender will conduct a detailed search on your credit history to decide your eligibility. This entire process leaves a light footprint on your credit.
In contrast to direct lenders, brokers distribute your information to several short term loan lenders. All these lenders will perform a background check on your credit history to determine your eligibility. These searches leave multiple light footprints on your credit file and as a result, shouldn’t really affect your credit rating.
Cost of Application
Once you approach a direct lender, they will do a background check to determine your eligibility without asking for money upfront. You only pay the agreed interest on the provided loan. When dealing with a direct lender and broker like BingoLoans, you will not need to pay upfront to be connected with a lender.
Using a broker may seem like it has a lot of disadvantages, but it’s a good move for people who have no time to seek direct lenders. It also gives you the opportunity to compare different lenders and choose the one that matches your needs.