Direct Lenders exploring the different options

 

 

When someone is looking at taking out a particular type of finance and they may soon face themselves with a dilemma as to who to apply to. There are many different types of finance out there and there are lots of different lenders to choose from so it is always wise for any customer to explore the different options available for them at that time, this way the customer can get the best finance available and use the best company available to them who are willing to accept any application that could have been made.

With any lender whether it be a direct lender or a financial Broker there will always be factors that contribute to finance being accepted or rejected at any stage. One of the main factors that will be considered for finance would be that customer’s credit rating, a search will nearly always be run against that customer to see if they are credit worthy and that can come into any lenders decision. The better the credit rating the better the finance that can be approved. A direct lender can often grant a decision straight away based on any information provided by the customer at the application stage where as any broker may take their longer depending whether they are simply an introducer, or whether they will actually arrange the credit for you.  Remember brokers will sometimes charge fees for using their services and sometimes the fees charged are of a large amount. A direct lender would normally not charge for an application whether it gets accepted or not.

 

Another factor any lender will take it to consideration when going through the application is earnings, the lender will need to access whether the customer in question earns enough and can afford to repay any finance owed, for example if a loan was taking out the lender would assess whether a customer earns enough for their monthly salary, a good way to interpret this information would be for someone to fill out an income and expenditure form that indicates what disposable income they have after all bills are monthly paid. This is also a good way for a direct lender to show careful and disciplined lending as a customer has proved that the loan is affordable for them. The above would apply for any finance that has been requested as it always vital that if finance is taken out then it must be repaid because there can always be serious consequences if the repayments ever get missed.

It is always easy for customers to apply for finance with the first company that comes along and offers it to them however, it is always worth taking your time especially if the finance being requested is for a high amount. There are always websites that can show customers the cheaper options available and it also posts previous reviews that other people in the same position have previously declared. With the lower interest rates that the sites can inform people of it can always lead to customers saving a vast amount of money on a monthly and furthermore a yearly basis. Some companies may offer lower interest and APR rates however they may have hidden fees and other negative clauses in their contract so always explore any terms and conditions of their site or thoroughly look over any agreement before it gets signed. If there are any questions before the finance is applied for then make sure it is asked as soon as it arrives as on some contracts once certain finance is applied for and maybe approved it can be hard to then cancel.

Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

 

Warning: Late repayment can cause you serious money problems

For help, go to moneyadviceservice.org.uk

Representative Example: Representative 1286.98% APR on a loan of £300.00 with 5 monthly repayments of £101.03 Total amount repayable £505.13 Annual interest rate (fixed) 290%

This article contains information about products/services offered by us as well as those that we do not offer.

Author: Internal Marketing Department

By Gemma Lane