What or who are money lenders? This is any person or company that lends money to others.
This can be in the form of a bank lending money through themselves or advertised through the likes of a supermarket provider.
Borrowers can also acquire money through a private lender who wishes to make an investment with their capital.
Representative 277.5% APR - Representative Example: Amount of credit: £750 for 12 months at £119.21 per month. Total repayment of £1430.52. Interest: £680.52. Interest rate: 140% pa (fixed). 277.5% APR Representative.
Who can borrow from money lenders?
Typically, there are restrictions on who can borrow from lenders.
These are usually that borrowers are over 18, have an income, live as a registered citizen and have a good credit rating.
Each lender will have different requirements for borrowers and there are lenders that are specifically suitable for those with a poor credit rating.
What is the application process for a money lender?
Before applying for a loan you will have to meet the lenders criteria.
This usually is that you are aged 18 years and over, have a permanent address, have a current bank account and receive a minimum income regularly.
For the majority of money lenders, borrowers can apply online, by phone or in branch if they are applying with a bank.
Some lenders may request evidence of address, wage and identity. Once this is confirmed and a credit search is carried out, the money is usually released right away.
I have bad credit; will I be accepted by a money lender?
Depending on the requirements listed for applications, not all lenders may lend to those with bad credit.
The best way to find out if you will be accepted without the worry of applying and being declined, you should look for companies that offer a soft search or contact the lender direct.
Another option is to approach a lender that specialises in loans for applicants that have poor credit. These lenders have more experience and knowledge of the market specific to those who have adverse credit.
However, by applying with these lenders it is still not 100% guaranteed that you will be accepted.
Are all money lenders regulated and provide safe lending?
Traditional banks and official money providers have very strict lending practices as they are heavily regulated by the Financial Conduct Authority (FCA).
It is worth checking that the company you are applying with are FCA certified.
This shows that the company you are applying with meet the correct standards that are required to ensure the customers is treated well throughout the lending process.