What does a loan broker do?

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Online Loan Brokers – How They Help

If you need to borrow money, using an online loan broker can be a good way to ensure you’re getting a good deal.

Most people borrow from a bank or a finance company. There are many different institutions that can lend you money, and they often charge different rates of interest, on different terms.

With so many lenders, and a lot of different loan features, it can be hard to know if you’re getting a good deal. It’s also time consuming applying for loans with different lenders, which all require you to fill out their own applications.

Applying for lots of loans with different lenders also means racking up lots of credit checks. All those checks are kept on your credit history. Having lots of recent credit checks can negatively impact your score, as too can ‘declines’.

This is where an online loan broker can help

A loan broker is someone who helps you borrow money, but they don’t lend you the money directly. They have connections with different lenders and can present you with a range of options, which you can choose from.

One application = multiple loan options = more options for success. Plus, you only have one credit check.

But not all loan brokers are the same

Here’s how to make sure your loan broker is acting in your best interests.

Loan brokers make money through commission. When they get you a loan through a lender, that lender pays the broker a fee.

Loan brokers can also be financial advisors - this is a big bonus

It means they can offer you more than just loan options. They can go one step further and discuss the pros and cons of each. They are obliged to point out which one works in your best interest.

They are held accountable for the recommendations they make and must demonstrate that they have put client well-being above everything else – including commission!

Let’s say you had three loans to choose from, and one of them generated a lot of commission for the broker but wasn’t in your best interest – a broker who is a financial advisor would be required to point this out to you, even if they lose out on commission.

Not all loan brokers are financial advisors.

That means they are not obligated to point out which loan option is in your best financial interest.

Be sure to check if your loan broker holds a Financial Advice Provider License issued by the Financial Markets Authority.

Loansmart does! Here’s why we are a smart choice.

Applying for a loan can be a frustrating, confusing and time consuming experience. Loansmart takes those problems away to provide you with quick, smart – trustworthy solutions. You don’t need to jump through any hoops with us, we do that for you. Here’s how it works.

Learn how to apply for a loan online – it takes just a couple of minutes.

Once you apply, we put your application in front of our low-cost lenders.

We then present you with your options and explain the deal that’s in your best interest. Having a range of options is great because you can compare the offers and easily see which deal is best.

Do you have existing loans? Loansmart is a debt consolidation loan broker too. We can help you make your payments more affordable and lower your interest rates. Check out these stories of borrowers we helped find better debt consolidation loans

Loansmart acts in your best interest, so we’re a smarter choice. We’re also fast. Hence our tagline – Smarter Loans >> Faster. So you can relax knowing you’ll get a great deal – fast – from a company that values your financial wellbeing.