A direct lender is a financial business that offers loan services to individual customers, directly. There are no third-party brokers or any other intermediaries involved in the process. The borrower and the lender deal with each other in one smooth, direct, and easy process, usually online.
Payday loans are a short term financial solution. They are small, short term loan option that offers the ability to borrow a loan amount between £100 - £1000. Typically, payday loans were designed to be paid back on payday, hence the name. You borrow the money to tide you over in an emergency and soon as your next wage arrives you can pay the loan amount back in full, with interest. These days the loan options are more flexible and the repayment terms may range from thirty days to six months. This gives you extra breathing space and allows you to agree on more flexible rates and terms. This type of loan is ideal for when you are strapped for cash due to an unexpected payment. Perhaps your boiler has broken down in winter or the breaks have gone in your car.
Direct payday loan lenders offer payday loans directly to the customer, usually using an online application process. If you're applying for a payday loan, chances are you need cash, fast. When you apply online for payday loans with direct lenders, that's exactly what you get. Direct payday loan lenders are also equipped to help you even when you have a lower credit score.
When it comes to applying for credit online, some of the terminologies used may confuse you. It may be easy to assume the direct lenders and loan brokers were the same things. You can use either of them to apply for credit online.
So they must be pretty much the same, right?
A broker does not loan you money, they are a third party who can help you find a payday loan to suit your circumstances. Instead of applying to one direct lender of payday loans, you will supply your personal information to the broker, who will use them to explore various lending options available to you. Due to their market knowledge, they may be able to help shop around and find loans with the best rates and terms for you. Brokers represent numerous lenders so it's likely a broker can negotiate better loan rates because they have close relationships with the lenders. They are also equipped to help you even when you have a lower credit score, perhaps being able to provide you with even more suitable options.
As we have touched upon, you can apply directly to a direct lender or broker online in a matter of minutes. Brokers and direct lending payday loans will both give you some form of response instantly. So in that sense, they are both quick and easy options. If you choose to go to a direct lender there is no middle man, which many people prefer. Regardless of which option you choose, research is important for many reasons including;
It's a personal preference. You can find a trusted and reputable broker to present you with a list of trusted and reputable direct loan options to you or, you can locate several direct lenders for yourself and then work out which of their products are best for your own circumstances. Direct lenders are sometimes preferable because brokers are known to charge excess fees on top, for their help in finding the right loan for you. Let's be honest, if you are looking for a payday loan chances are you can't afford any excess fees. Thankfully there are some great brokers in the market who are absolutely free, like Loanza!
If time is of the essence, using a broker can cut out a lot of the leg work on your behalf, instead of trawling the internet researching various direct lenders and submitting several applications, you find one reputable broker like Loanza and all of that hassle will be taken care of for you. By using a broker, the research is taken care of and you can be presented with a list of trusted and reputable lenders. Brokers will also be able to present you with the best products for your personal needs, for example, some customers are looking for the largest amount and others would like to see an easy comparison of interest rates available. Using a broker offers payday loans with direct lender benefits plus more. . .
Direct Lenders will set their own application requirements which you can view online before starting your application. This means that the information required may differ slightly from lender to lender. However, you can expect to be asked for the following personal information as standard:
Personal Details - Name, date of birth, home address, email address, phone number, a copy of valid ID.
Income Details - Employment status, income amount, how often you are paid, employer s contact details.
Bank Account Details - You will be asked to provide the details of any banks you have open along with details of any savings.
The information you supply will be used to confirm your identity, carry out a credit check, assess your eligibility, and process your payment. You may be asked for further details. When you apply for online, payday loans direct lenders ask for slightly more information, to begin with as standard.
Your name, email address, what you will use your loan for and the amount you want to borrow!*
Remember payday loans should not be used as a long term financial solution, they are short term loan options designed for one-off use. Continuous use of payday loans may impact your credit score long term.
*Further details will be requested later down the line.