What is a direct lender, and what is a credit broker?
A direct lender is the company that actually provides the money. It sets the rate, runs the checks, makes the decision and collects your repayments. When you borrow from a bank, you are dealing with a direct lender.
A credit broker does not lend its own money. Instead it works with a panel of lenders and brokers and helps match you to one that may be able to help. You still borrow from a lender at the end, but the broker does the searching for you. Dot Dot Loans is a credit broker.
The key differences at a glance
Both are regulated by the Financial Conduct Authority, but they play different roles in getting you a loan:
Searches a panel of lenders and brokers to find you a match.
Provides the loan and makes the final decision.
How a broker actually helps you
The real value of a broker is in protecting your credit file while you shop around. If you applied to lenders one at a time and were declined, each attempt could leave a hard search on your file, and several in a row can make you look higher risk to the next lender.
A broker checks its panel with a single soft search first. That means you only make a full application, with its hard search, if you choose to continue with a potential match. One short form does the work of many.
Do brokers charge fees?
This is the question that matters most, and the answer is not the same for every broker. A responsible broker is completely clear about how it is paid before you go ahead.
Dot Dot Loans does not charge you a fee for using our service. We may receive a commission from the lender or another broker if you take out a loan following an introduction through our website. That commission does not change the price you pay. Be cautious of any broker that asks you to pay an upfront fee.
A legitimate lender or broker will never ask you to pay a fee up front to release or guarantee a loan. If someone does, stop and check them on the FCA register before parting with any money.
How to tell which one you are dealing with
A firm has to tell you whether it is a lender or a broker, but it pays to check for yourself:
- Read the wording on the website. A broker will describe itself as a credit broker, not a lender.
- Look for the FCA authorisation details, usually in the footer, including a firm reference number.
- Check that number on the FCA register to confirm what the firm is authorised to do.
- Read how the firm is paid, which a broker must disclose.
Dot Dot Loans is the trading name of PJG Financial Limited, authorised and regulated by the Financial Conduct Authority under reference number 919697, as a credit broker and not a lender.
The pros and cons of each
Neither option is better in every situation. It depends on what you want:
- A broker suits you if you want to compare several lenders quickly, protect your credit file with a single soft search, or you are not sure where to start.
- A direct lender suits you if you already know exactly which lender you want and are confident you meet its criteria.
Which route may suit you?
A broker may suit you if you want one eligibility check across a panel. Going direct may suit you if you already know the lender you want.
Either way, always look at the rate, the total amount repayable and the lender's own terms before you agree to anything.
Staying safe whoever you use
The same safety rules apply to lenders and brokers alike. Deal only with firms on the FCA register, never pay a fee to release a loan, and treat any promise of guaranteed approval with suspicion. The FCA runs a free tool called ScamSmart to help you spot credit scams.
If money is tight, free and impartial guidance is available from MoneyHelper before you borrow.
Sources and methodology
Every figure in this guide is drawn from an official or independent authority, listed below. We do not link to other lenders or brokers. Where a statistic could change, we note when we last checked it, in July 2026.
Methodology: this guide is written in house by the Dot Dot Loans editorial team and reviewed by Paul Gillooly, Director of Dot Dot Loans, using published rules from the Financial Conduct Authority and figures from the sources above. It is general information, not financial advice. Representative Example: Borrow £1,000 over 18 months. 18 monthly repayments of £89.22. Total amount repayable: £1,605.96. Interest: £605.96. Annual interest rate: 59.97% (fixed). Subject to application approval by the lender. Not all lenders offer loans up to £5,000. Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.