As a writer, I also run this site where visitors compare loans of various kinds. You can compare fast loans, private loans, corporate loans and other forms of credit, including credit cards.
I, like many others who have built or are still building this type of site, are not a loan broker. We are ordinary individuals, or (sometimes) small business owners who receive commission from an intermediary (an affiliate network) who pays employer fees and taxes. We are called affiliates, or sometimes also publishers.
When loans become something rogue
A large number of borrowers come from Google, but big affiliates make so much money that they can do TV commercials or do other lavish marketing. I had an acquaintance, a relatively young guy who had a monthly salary of over USD 200,000 a month on his loan page. I asked him how he succeeded. His answer was “I worked a lot”. It sounds logical, I thought because if you work really hard in many industries, you also make a lot of money. But then I wondered if it was quantity or quality? And how is his job worth more than, for example, doctors with lower salaries or directors responsible for a large number of employees.
I looked at his and many other websites. I noticed that many loan brokers and affiliates have very similar websites. Comparative services or direct loan intermediaries with equivalent content. They only have different designs, but write similar things in different words. In addition, I have seen a lot of deeply unethical approaches, where you name borrowers with expressions in the style of “Can’t you afford to give your children Christmas presents? Take a quick loan and save Christmas! ”. Why do you write so? It didn’t feel quite right!
Then as for the loan intermediaries, the ones who pay out the loans. They have started to collect hidden fees and increased the costs in the form of, for example. high invoice fees, starting fees and the like. Of course, some loans are cheaper than they have been historically, but it does not necessarily help those who are young and stupid, who do not have an understanding of how expensive the loan actually is.
Loans are not always bad
It is easy to focus too much on the sense of morality in this article. However, it should be remembered that loans are not always bad. Far from it… There are obviously bad loans, there are rogue lenders and there seems to be borrowers not knowing what they are doing.
It seems that people think that some loans are always bad even though they are not. In fact, you can’t say that all loans are bad. What is good or bad is not just based on terms like interest rates. It is seen in individual conditions, person and context. Even fast loans can be considered very good for some people in certain contexts.
Game addicts abuse credit
The problem with fast loans is also that many gambling addicts lend money. They have the opportunity to borrow money without UC, something that usually lenders and affiliates usually talk about. Then you take out a loan without UC, which can mean that you have the opportunity to borrow again despite unpaid debts or existing loans with eg. some major banks. This makes you over-indebted, especially when these borrowers are wasting money. This could be prevented by stricter legislation. For example, you could ban casino games “on invoice”.
You may be able to introduce checks or prohibit other types of credit for particular casino games. I, who develop a loan comparison service, think about how to differentiate myself from others. I have an ambition not to be “dirty” in a (according to some) dirty industry.
In the long run, I don’t really think that bad marketing and ugly tricks are worth it. After all, financial services are very much based on trust. It’s something not only big banks should embrace.