A lot of people associate brokers with mortgages, but there are also personal loan brokers. It's not surprising many of us need help, given personal loan borrowing is at record highs in 2023.
Particularly if your finances are complex, a personal loan broker can make it easier to get a loan.
BUT there are trade offs you should know about before deciding if using a broker for your personal loan is a good idea.
In this guide:
A personal loan broker is a
finance professional who helps you get a personal loan. They work as an intermediary between borrowers and lenders.
Ideally, they will help you find the most suitable personal loan offer from a selection of lenders.
Some brokers specialise in helping certain kinds of borrowers.
There are also specialist car loan brokers.
If you use a personal loan broker, this is what you can expect:
Personal loans brokers work with banks, credit unions, online lenders and other institutions that offer personal loans.
They don’t work with all lenders. in the market. Each broker typically has a relationship with a pool of particular lenders.
This is an important factor when weighing up the pros and cons of working with a personal loan broker.
First, let’s look at some of the reasons you would consider using a personal loan broker:
It’s not all benefits with personal loan brokers. Here are some possible disadvantages you should factor into your decision.
Not everyone needs to use a personal loan broker.
It can be
very easy to find and apply for a personal loan yourself.
And of course you can use online tools like a personal loan calculator to help crunch the numbers.
a lot of people personal loan brokers offer a very valuable service.
Which category do you fall into?
If you decide that working with a personal loan broker is the way you want to go, here are some pointers to help find the best one you can.
Like any other product or service, there are good brokers and ones you want
A little research can go a long way to help you find a good broker.
After all, with a personal loan that you could be repaying for up to seven years, spending some time understanding your options will be well worth it.
*Information about comparison rates Comparison rates are designed to allow borrowers to understand the true cost of a loan by taking into account fees and charges, the loan amount and the term of the loan. The comparison rate is based on an unsecured fixed rate personal loan of $30,000 over 5 years. WARNING: Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.