Personal Loan Broker

Finding the right personal loan can be hard, so a personal loan broker could be an option for you.

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, updated on October 4th, 2023       

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What are personal loan brokers?

Personal loan brokers are professionals who help those looking for a personal loan find the best deal to suit their needs. They operate in a similar way to mortgage brokers, as they are finance specialists who are accredited with lenders from whom they seek out deals for their clients. Personal loan finance brokers can be accredited with a wide range of lenders, which is a desirable trait that a prospective borrower may look for; this enables them to choose from the widest selection of personal loans, thus maximising their chances of finding an offer that suits their personal circumstances.

Personal loan brokers will typically charge you for their services with a brokering fee. This will usually be a small percentage of the total loan amount (less than 5%) or a set sum but, depending on the size of your loan, this could be hundreds of dollars.

How do personal loan brokers compare to getting my loan direct?

Searching for your personal loan yourself and applying directly to a lender is the primary alternative to looking for a personal loan broker, which has both advantages and drawbacks when compared to brokers. The benefit of a comparing personal loans with Savvy is that it takes much of the guesswork out of applying for a loan: you can compare interest rates, fees and other important loan terms that can help your decision. Also, perhaps the most important positive is that you won’t have to pay a fee when applying for your loan directly, which can save a substantial upfront cost.

However, it is important to read lender’s eligibility criteria before you apply. Additionally, brokers are sometimes able to find better deals through their lender connections than an individual would, which could end up saving you a significant amount of money. Finally, you simply may not have the time (or energy) to survey a wide range of loan offers, which is what a broker does for a living. Overall, the avenue you choose is entirely down to your preferences and how you think you can find the best personal loan.

How do I find the best personal loan broker?

There are a number of key areas that you should look to when comparing personal loan brokers. It’s important to choose one which aligns most closely with your needs and can offer you the best personal loan deals. You should consider the following when searching for the best personal loan broker:

Suite of lenders available

The number of lenders your personal loan broker is accredited with is perhaps the most important element in choosing the best available option for you. The more lenders that your personal loan broker is accredited with, the more choice you’ll have for personal financing and, as such, the greater the chance of finding the perfect loan to suit your needs. For example, a broker accredited with less than five lenders is more likely to be a lesser option for you than one with more than ten.

Online or in person

Most personal loan brokers operate in the online space these days, which makes finding one much easier and more convenient overall. An online broker sidesteps the need for appointments to be made and physical documents to be sent to an office; rather, everything is conducted in a safe online space, and you can attend to it whenever you’re free. While many would prefer online brokers for their convenience, many would still prefer face-to-face brokers, who are still very much available to search for. Your preference in this regard will inform your ultimate decision on which personal loan broker to choose.

Processing speed

You may want or need your funds turned around quickly to access your personal financing sooner, so you could look to personal loan finance brokers who can do that. Each broker will be different in terms of how quickly they can get your loan approved, so you should do your research in this area. Typically, online brokers are able to get loans approved at a faster rate than those dealing with physical documentation.

Frequently asked personal loan broker questions

How much can I borrow with a personal loan broker?

Your borrowing power is determined by a variety of factors, including your income and expenses, existing debts, loan security and the type of lender you go with. However, while personal loans can reach up to $50,000, some brokers will implement a higher minimum than lenders of up to $5,000.

Can I get a personal loan broker if I have bad credit?

Yes, you can – applying through a broker can help increase your chances of approval for a bad credit personal loan. This is because, as previously mentioned, they’ll know the requirements for bad credit customers when it comes to applying for your personal loan. This can also save you from lowering your credit score further with an unsuccessful application.

Do personal loan brokers offer all types of personal loans?

Not always – each personal loan broker is different in what they can offer you as a customer. For example, some brokers may only offer personal loans to customers with a good credit score, ruling out those with an imperfect one. Make sure that you do your research into the types of loans that your potential personal loan brokers offer.

Will a personal loan broker help me get approved if I’m self-employed?

Yes – like bad credit customers, self-employed workers can sometimes have a hard time getting approved for financing. Going through a broker who is aware of the eligibility criteria and has specialist lenders in their suite catered to your situation is the ideal scenario for a personal loan borrower who seeks out a personal loan broker.

Can I still find great deals without a personal loan broker?

Absolutely – researching through rate tables and comparing your options is a great way to find the best deals on the market directly. Also, if you’re looking for a loan with your current financial institution, you might be able to negotiate better terms if you’ve been a customer for a long period.

Is it better to get an unsecured or secured personal loan with a broker?

Unsecured personal loans are faster and easier to get approval for. They’re a source of financing for those who either don’t want to secure their loan with an asset or don’t have an asset to secure their loan with. However, listing an asset as collateral can help reduce your interest rates and fees and increase the amount you’re able to borrow.

Helpful personal loan guides