What to Avoid with Credit Loans Instant Decision Brokers
Credit loans thourgh instant decision brokers are an easy way to apply for mutliple lenders with one application and instantly see who will offer you a loan. However, some instant decision loan brokers don't operate as ethically as they should and many have received bad reviews and complaints. The broker won't tell you that they've had complaints, especially if they charge a fee, but you'll have to look carefully at all credit loans instant decision brokers before applying. Unregulated brokers may:
- Share your personal information to third parties without your knowledge (resulting in texts, e-mails and letters from companies you didn't agree to have your information given to).
- Charge a fee before finding you a loan.
- Find loan companies you could have otherwise found yourself.
- Offer "guaranteed finance" to encourage you to pay a fee when no finance has been secured at all.
- Be a bogus company and offer no loan at all but take a fee.
Is the Company Regulated?
The first thing you should do is check the regulation of the broker company. Many brokers offer secure applications and are properly regulated by an authority, such as the FSA. You can find this information at the bottom of the company webpage and a registration number; check the regulating authority is authenticate and ensure the registration number given is actually registered.
What Do the Terms and Conditions Say?
Don't go off what the sales people or the site itself says. "Guaranteed" finance might not be guaranteed at all and there may be hidden fees. Check the terms and conditions before signing and offering card information, as you will be bound by these terms and conditions no matter what the website or anyone else says. If there's anything that you don't like the sound of in the terms and conditions, don't sign.
Do They Protect Your Data?
Most credit loans instant decision brokers will need to share your personal information to do a credit check and apply to relevant loans for you. However, they doesn't mean they can sell your information to other companies, like debt advice sites or bogus loan companies. Check that they are covered by the Data Protection Act and what aspects of your information will be shared or on what basis.
Is Your Information Secure?
Many good credit loans instant decision brokers won't ask you for bank details but some will. The broker doesn't need your details unless they charge a fee - you should be able to give your bank details to the relevant lender, not the broker. In the case that you must provide your details make sure the connection is secure and your card details won't get lost or picked up by anyone else by accident.
- Flickr: Credit Card Crunch