There are many times in life when there is a financial emergency. For instance, there may be immediate car repairs, damage to your home or a medical emergency which are not insured. In this situation, you may need a financial helping hand in the form of short term personal loans. Many people also take loans for family vacations or some large purchases instead of using credit cards. You may very well be aware that if you approach a mainstream traditional bank or lender there will be a long drawn out process of application and approval and you will also have to visit the bank personally for a face to face meeting which is mandatory with these traditional lending organizations. Then again there is the inevitable waiting period which may take weeks. This is the reason that more and more people are turning to loan brokers when they are in need of loans.
Benefits of opting for loan brokers
Loan brokers act as mediators between lenders and borrowers. The best part is that the entire process of approval is online and you don’t have to go to the physical office of the lender or loan broker at all. In fact, most of the times the loan is approved without even a phone call and minimal faxing. At the same time, the process of approval is also very fast. Once you provide all the information asked for in the online form on a loan broker website, they pass on the information to the lenders who have loan products to suit your requirements. The lenders check the information against their criteria and provide approval for the loan sometimes in under half an hour. The best part is that once approved the loan money is transferred to your bank account within minutes.
Another benefit of applying for a loan through a loan broker is that you can take help from the loan advisers employed by the loan brokers. These loan advisers will take a look at your finances and then advise you to best amount of loan and tenure that will work for you. This ensures that you do not overshoot your budget and don’t end up taking a loan that you cannot afford.
Loans for bad credit
It is even more important to be careful about the amount of loan and tenure if you have bad credit. Of course, the main stream lenders simply refuse to provide a loan to an individual with bad credit, but if you apply through a loan broker then you can also get short term loans for bad credit. This is because the lenders associated with the loan brokers are specialist lenders who do conduct a credit check of the borrower as per the guidelines of the FCA, but they go soft on these credit checks. Instead of measuring a person’s worth by his or her credit score they take into account other factors like your current income and stability of the job. Your monthly income and expenditure graph and based on this information they approve the loan for bad credit.