When it comes to quick loans, Wonga was considered the market leader. They offered quick loans for short-term at reasonable rates. However, on August 30th, the company went into administration due to a financial crisis.

The collapse of Wonga has created an uncertain situation. People experiencing financial problems now find it difficult to decide which loan lender will work best for them.

When facing financial issues, many people look for loan lenders online and seal the deal without proper research. But what if you sign a contract and later find out that another reputable loan lender offers quick loans at much lower interest rates?

If you want to find the best deal in town without wasting time, you should look for loan brokers.

Loan Broker

Many people confuse loan lenders with loan brokers. However, the difference is that the former lends you money, while the latter helps you find a lender that is willing to lend you the required amount.

Since professional loan brokers know what they do, they can assist you in finding a loan provider that offers low interest rates. Moreover, they can also negotiate the terms of the quick loan agreement with the lender on your behalf.

If you’re looking for a good loan broker, you should consider the following factors to make the right choice:

 

• FCA Approval

 

The Financial Conduct Authority (FCA) is an EU regulated body that issues licenses to Forex or quick loan brokers. Brokers should abide by the laws and refrain from manipulating their clients. If any loan broker wants to operate in the UK, they ought to get this license.

So, before you choose a loan broker, don’t forget to inquire about their license. If they refuse to show you the license, then it’s a tell-tale sign that they are a scam and you should stay away from them for your own good.

 

• Fee Considerations

 

Quick loan brokers help you find the most suitable loan providers for your needs. They save you from the hassle of visiting the websites of multiple loan lenders and comparing their rates.

However, not every broker charges you money for their services. Isn’t it strange?

It’s because loan lenders offer them a commission for every client. Therefore, when you’re looking for a loan broker, make sure you acquire the services of a professional that doesn’t charge an additional amount for their services.

 

• Open to Communication

 

When you acquire the services of a loan broker, you must have many questions in mind. You may want to discuss the right loan options as well as ask them the reasons why they suggest you apply for a loan with a specific lender.

If the broker listens to you and answers your questions with patience, only then should you hire them.

To conclude, it’s best to acquire the services of a loan broker when you need a quick loan. They will help you go for the right option by comparing the rates and terms and conditions of multiple loan lenders.

 

 

 

Disclaimer: This content does not necessarily represent the views of IWB.