Advantages And Disadvantages Of Direct Lenders UK

Loans are basically available in two types: direct lenders and brokers. The direct lender can be a bank or a lender that deals directly with the borrower. This means that the source doesn’t need to work with a middleman in processing the applications, sending the funds, and receiving the payment. On the other hand, a broker, which is also called as the matcher, acts as the middleman between the lender and the borrower. As the intermediary, the broker presents the products to the borrower.

Advantages Of Direct Lenders

There are several direct lenders available nowadays, each promising a better lending experience. But what benefits should the borrower expect from a direct lender UK? First, direct lenders are in charge of the entire lending process. Meaning, the same company accepts your application and sends This is the best option for borrowers who don’t have so much time in waiting for the application to be approved. Because you’re dealing with the same company the entire time, your fund will be sent faster. In fact, most lenders nowadays can even send your money on the same day of application. Another reason for choosing direct lenders over brokers is that they keep your personal information safe and secured. Unknown to many, most matches earn money by selling their clients’ personal information to third parties, who make money too by calling you for additional loan offers. The direct lenders, on the other hand, keep all your personal and bank details safe and protected. As a borrower, you need to double check the company by calling it and asking their terms and policies.  

Disadvantages Of Direct Lenders

On the other hand, direct lenders also have their cons that borrowers need to consider as well.
Primarily, since a direct company is a single company, comparing loan is not applicable. The company cannot choose any other product that is suitable for you unlike with brokers. Meanwhile, since brokers have partnered with multiple companies, they can easily find the best lender that would match your qualifications. Unfortunately, choosing a direct lender means shopping around to find which works best, on your own. This necessarily means walking around and personally asking the lending companies about what they in store for you.

Another pitfall is that your credit history might be used as a basis of the direct lender. On the contrary, a broker can find you directly a lender that won’t need to check your credit history. Therefore, if you worry about your poor credit remarks, it’s best to ask assistance from direct lenders.

A direct lender has its fair share of pros and cons and it’s basically up to you if you will go for it or not. To end up with the best financial decision, it is recommended to perform a research first on your prospect source of fund and the potential company that you’ll be dealing with. Make sure that the company you’re talking to is legitimate so that you will not end with a scam. Moreover, you can always seek professional advice from the people you trust.

Representative 305.9% APR.
Representative example: £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)

FinanceJar is a credit broker and not a lender. We pass your information to a lender once you have been accepted for a plan. We take a fee from the lender only, once you’re approved and we do not add charges to your plan in doing so.