Everything is fine! Except that Good Lenders Credit is not a bank but a credit and insurance intermediary. A credit intermediary is also called a credit broker.
Banks, credit institutions, credit companies, credit intermediaries, brokers: the public gives a little the impression of confusing these concepts which however cover different services.
So let’s take stock together to help you understand what is behind the door that you just pushed! Today we do it “It’s not rocket science!”
Credit institutions/credit companies
Consumer credit can be offered by bank lenders – namely banks and lending institutions – and non-bank lenders – namely credit companies.
All these lenders must have an approval from the Federal Public Service Economy for the granting of consumer credit.
Consumer credits can be distributed by bank branches as well as by credit intermediaries, ie brokers and credit agents, points of sale (store: for example in household appliances, furniture, garages etc) and remotely (for example via the internet).
Credit institutions (savings banks) are defined by law as companies whose activity consists of:
- receive deposits of money or other repayable funds from the public, and
- to grant credits for their own account;
Credit institutions are banks, the two terms are synonymous.
The credit companies are lenders who are not credit institutions and which has an approval from the SPF Economy to grant credit.
Differences between a bank (credit institution) and credit company. A bank offers you a whole range of financial services (current account, savings account, home banking, investment advice, tax or property advice, etc.) while a credit company is a company whose sole purpose is to grant credits for its own account ( which a bank also does of course!).
A credit broker or intermediary – the two terms are synonymous – is neither a bank nor a credit company.
The credit broker or intermediary does not grant credit. It simply connects a client who is seeking credit with a bank or a credit company that will grant him the credit.
It is therefore a… credit intermediary!
What are the advantages of turning to an intermediary rather than a bank or a credit company?
There are several interests:
- The credit intermediary helps you prepare your file and introduces it for you: he is your intermediary, your representative. He puts his expertise, his relationships at your disposal;
- The credit intermediary puts in competition several banks or credit companies and consequently, it offers you the best offer on the market for your request and taking into account your specific risk profile.
- The credit intermediary is in contact with the public: he can get you a decision in 48 hours, which no bank or credit companies can offer you;
- The credit intermediary advises you beforehand. He offers you the product which may be accepted by a bank or a credit company. It is our duty to advise.
- In the event of difficulties in the course of your repayments, the broker is much more reactive and pragmatic than a bank or a credit company. He defends your case like your insurance broker would in the event of a house fire. The broker is really a close partner.