This week I researched how companies are using new ‘ping tree’ technology to guarantee you a loan at the best rate. Ping trees do full applications with 50 different lenders, all from one 2 minute application.
Why you should trust me
My name’s John Talbot, also known in the personal finance community as ‘Money Nerd’. If you saw my story in the Sun Newspaper recently, you’ll know that I once had a bad credit score and struggled to get a loan. I was applying for up to 10 loans a day. If this technology was around 5 years ago, it would have been a different story.
I’ve spent weeks researching how these companies work, going through the application process and testing their customer service. I’m confident in my methodology and recommendations.
What is a Ping Tree?
A ping tree is new piece of technology which allows you to apply to over 50 lenders in a single 2 minutes applicant. This is great as it means that you’re almost guaranteed to get accepted and get the best rates available to you – saving you time and money.
It works like this:
- You go to a ping tree service and enter some basic information
- When you submit, your details are sent to the lender with the best possible loan offer
- If that lender doesn’t want you as a customer for whatever reason, then it goes to the lender with the next best offer
- This repeats itself for over 50 lenders
As you can see this is much easier than typing your details into 50 different website and having 50 searches on your credit file and since it checks for the best deals first, you’re going to get the best deal available to you.
Ping Tree benefits
- Try 50 different lenders with one 2 minute application
- Protect your credit score by only applying once
- Save time by only applying once
- Guaranteed the best rate for you
What you should do before considering a Ping Tree
The biggest thing that you should check before using a ping tree is that they don’t charge a fee. As this is a relatively new and valuable service, some ping trees have taken to taking a fee from the customer. This isn’t good practice, so I did not review any ping trees that charged a fee.
Trusting a Ping Tree
- Make sure your direct lender is authorised by the correct agencies. All UK lenders have to be authorised by the Financial Conduct Authority.
- Make sure your direct lender has a real postal address, not just a P.O box number, and are easily contactable.
- Make sure your identity is protected. Any good site will have ‘https’// before the website name when you go to the site.
My pick: Moolr
Moolr was the best ping tree that I reviewed. They promise a free, no obligation, quick and easy way of finding a loan from a vast network of lenders.
Moolr finds loans from £500 to £5000, with repayment terms ranging from 1 to 24 months and many of the lenders they work with means that you can get your money on the same day. Over the years, Moolr have helped over 400,000 people with their finances.
The benefit of applying with Moolr, is that they have direct, instant, and online access to many different lenders – saving you the need to shop around. They are 100% online, and never make any sales calls.
By applying with Moolr, you are under no obligation to commit. They will find you a loan provider that’s willing to lend to you and send you to their site to finish the application. At this point, you do not have to accept the loan – the choice is yours.
Moolr outlines the benefits themselves on the website. The diagram shows the advantage of ping trees over loan comparison sites and direct lenders.
Other benefits from Moolr are:
- Borrow between £100 and £5000
- 100% FREE, no obligation application
- Complete one simple, quick online form
- No paperwork required
- Compare loans instantly
- No hidden fees or costs
- Secure encryption
You should try it if you meet the criteria:
- Be over 18
- Be a UK resident
- Be employed or have a regular income
- Have an income paid directly into your account
- Have a bank account with a debit card
It’s free and there are no fees involved. You should know that they receive a small commission from the lenders when you take out the loan, much like how comparison sites make money. This does not affect your charges, or APR.
In terms of the interest rates, that will depend on which lender you’re matched with. Short term loans offer a lower interest rate than other loans. The repayments are spread over a longer period of time.
Moolr will automatically redirect you to the lender’s website that has your quick loan offer, making the process even simpler for you.
If you agree to their terms, you simply click the button to finalise your loan on the lender’s website.
If you don’t agree to the terms, you can simply walk away, and you are free to try our service again, to find an alternative lender.
Flaws but not dealbreakers
One of the disadvantages of ping trees is that they do not lend the money themselves. This means that the ultimate decision to approve your loan is with the lender and any customer service will come from the lender, not the ping tree.
What about my credit score?
The beauty of a ping tree is that you can do 50 searches with one application. This means that your credit file will only show one search on your account.
Experian, the largest credit reference agency in the UK says that you can do one search every 3 months without effecting your credit score (by the way, you can now check your score for free!).
If you were to apply direct, then you run the risk of not being accepted for your first choice and as a result you would risk impacting your credit score on your next application.
What about comparison sites?
Comparison sites only let you apply one by one, this means entering your details multiple times and going through to each lender. This not only takes a long time, but as explained above you risk hurting your credit score.
Another disadvantage of comparison sites is that the actual offer may differ from that you saw on the comparison website depending on your personal circumstances.
Is a ping tree more expensive?
In short, no. However there are some ping trees that charge a fee, you should avoid these. Needless to say, I didn’t review any that charged a fee.
Most ping trees have commercial relationships with loan providers that pay them a commission, so it’s the lender that’s paying, not you.
In addition, in many cases, ping trees are able to negotiate more attractive deals, which will actually save you money.
What about going direct?
There’s no advantage of going applying direct with a lender. In fact it can be a bad thing because:
- Ping trees often negotiate better deals with the lenders
- If you fail an application with one lender, it could impact your score when you apply to another lender.
Ping trees are an excellent way of getting a loan as you can apply to up to 50 lenders, so you’re almost guaranteed to be accepted.
The main benefit is time saving and not leaving lots of searches on your credit file.
If you’re looking for a loan, using a ping tree seems the way to go!