A credit broker connects individuals or businesses with lenders and manages all types of credit, earning a commission on the loan. They work as intermediaries, advocating for clients during the loan approval process, and require a college degree in finance, economics or business.
A credit broker works to connect an individual consumer or business looking for a line of credit with a company, such as a bank or other lending institution that can provide a line of credit. All types of credit are managed by brokers, including commercial loans, mortgages, auto and personal consumer credit. A broker acts as an intermediary between banks and individuals or companies and is used in competitive financial markets to qualify loans with the most appropriate lending institution.
A broker’s job is a combination of sales and marketing, with the goal of finding clients in need of loans and then proceeding to qualify the client through the application process. A credit broker can work with a client on all aspects of the loan process, including paperwork for the application and negotiating fees and interest rates. The direct role of a broker can vary by region, as some countries like the UK have specific regulations for what a broker can and cannot do. As a result, in some areas, a broker works more as an advocate for the client during the loan approval process, rather than being directly a salesperson for the loan itself.
Individuals and businesses often choose to work with a credit broker to find the best lender and navigate the technical aspects of the loan application process. For this, a credit broker earns a commission, usually a percentage of the loan that varies according to the amount and type of loan itself. This fee structure is regulated in some but not all regions and is usually agreed upon early in the loan process. Brokers are able to find consumer and business loans as they have connections with lenders and access to wholesale credit markets to find the most competitive loan rate. A credit broker is distinct from a loan officer in that he is an independent third party, not directly employed by the bank or institution offering the loan.
A college degree, typically in fields such as finance, economics or business, is usually required to work as a credit broker. Some companies also require a master’s degree. The job is office-based and may include frequent travel time for client meetings and interaction with creditors. A normal 40 hour work week may be observed, although overtime is normal depending on workload and circumstances.
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