Question 1

What is a credit broker?

Accepted Answer

A credit broker is a business or individual that helps people find and apply for credit products—such as personal loans, car finance, or credit cards—by matching them with suitable lenders. Credit brokers don’t lend money themselves; instead, they facilitate access to lenders who do.

Question 2

Is a credit broker the same as a lender?

Accepted Answer

No—a lender is a financial institution that actually provides the money and where you repay the loan directly. A broker acts as an intermediary, connecting you to lenders but not funding the loan themselves. Result Loans is a fully regulated credit broker—not a lender—and works with a network of lenders to help you find a loan offer that’s right for your situation.

Question 3

How does a credit broker work?

Accepted Answer

1) Submit a loan application with basic information; 2) The broker runs a soft credit search that doesn’t affect your credit score; 3) The broker matches you with lenders based on your details; 4) You review and choose an offer, often being taken to the lender’s site to complete the application (a hard search may occur); 5) The lender verifies income and affordability and, if approved, funds are paid to your bank account.

Question 4

Why should I use a credit broker?

Accepted Answer

A broker can save you time by letting you compare offers in one place with one soft search, give access to more lenders (including specialist lenders), and help you find the best-fitting loan options. Brokers typically earn a commission from lenders; some may charge fees, so always read terms carefully.

Question 5

Are credit brokers regulated?

Accepted Answer

Yes. In the UK, credit brokers must be regulated by the Financial Conduct Authority (FCA). Look for clear disclosures about regulation and fees, and avoid brokers that pressure you or charge upfront fees.

Question 6

What fees do credit brokers charge?

Accepted Answer

Many credit brokers offer their services for free to the customer, earning a commission from lenders when a loan is funded. Some brokers may charge upfront fees, particularly in debt advice or guarantor loan spaces. Always read terms and disclosures carefully.

Question 7

What red flags should I watch out for when choosing a broker?

Accepted Answer

Red flags include asking for payment upfront, offering guaranteed approval, being vague about which lenders are involved, or failing to show FCA registration details. If something feels off, verify the broker’s FCA registration and disclosures.

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