When you are financially broke, you need professional guidance to restore your credit health. However as there are no free lunches you can not solely rely on free articles and information available online. You can easily fall prey to online campaigns of any of the lenders. When you need an additional loan for your bad credit situation it is important to do research and contact only experts in the field. Contacting a loan broker helps you make an informed decision.
It is widely popular on the internet that going directly to a lender you can search better deals. You can read reviews of credit experts rating lenders above the brokers. But can you distinguish between a smell of tuna fish from cod near a pond? Not exactly.
Likewise, when you are on hunt for a great credit deal with troubled credit history or low loan eligibility, all the lenders are like different varieties of fish in the pond. You cannot distinguish who is better just by being on the shore. You need an expert who can guide you to choose your place.
For example: Say, Paula Jackson needs an unsecured home owner loan to restore her credit health. The market value of her home is £240000 and she needs at least £25000 to consolidate her loans. Her current mortgage stands at £160000. She could not get a deal with her mortgage lender as she needed an unsecured loan. She doesn’t want to use home equity.
Most of the lenders would only extend bad credit loans against home equity. Locating unsecured loans with poor credit history is a tall task. Herein she can contact a loan broker as they are experts in locating parties offering the closest deals. They will save all leg work for you.
Let’s find out in detail below and know how borrowing with lenders and brokers may differ.
1. Fast Processing Every time you contact a lender, they pull out your credit report and make a foot print in your credit report. If you choose to contact multiple lenders for a single loan, it will make multiple entries in your credit report. This would be considered as a credit hungry nature and your score would suffer. In an ideal situation if however you contact a single lender at once and wait for their response† it may take longer time to successfully hunt for a deal.
However if you contact a loan broker, you could be rest assured of locating a deal within shorter duration. A loan broker sends loan queries to multiple lenders all along. They ask lenders to make soft credit check and thus protect your credit report at the same time. Thus contacting a loan broker you can expect speedy processing throughout. They are professionals with years of experience in dealing with each loan application.†
Lesser Hassles Brokers promise lesser hassles, as neither do they charge upfront fees nor do they ask for loan security. They act as your guide who works according to your specific needs. While when you contact a lender every step entails hard work. From searching out the names who deal with bad credit borrowers, you would also need to manage the negotiation and all other parts of finalising deal.
Get Choice Brokers never make decision for you. They inform you about the available deals. You get apt choice to use the most profitable deal. However when contacting lender you just cannot ask multiple lenders about their offer as it would again make a query on your credit report. There is no choice and you entirely depend on your negotiation power.
My name is Jenny Elmore. I am a financial blogger. I worked as a Credit Manager for more than a decade. Currently I am writing a Book on ‘Borrowers, Brokers and Lenders.’† You can read more articles and loan tips here:†http://www.bestunsecuredloans.uk/