A payday loans direct lender is a licenced lending firm that offers payday loans to borrowers.
If you’ve been thinking about getting a payday loan, you’re probably familiar with what they’re, how they work, how much they cost, and where you may get one.
Going straight to the source of the money by applying for a long from a payday loan direct lender is one option.
The other option is to use a payday loan broker, who can assess your details and get you connected with one of the many direct lenders in their network, where you have a high chance of approval.
Each has its own advantages and disadvantages – let’s take a look together!
What is a payday loans direct lender?
A payday loan direct lender is a registered company that provides payday loans. This means, that the direct lender is the one depositing the money in your account.
Direct lenders accept loan applications and make decisions swiftly. If they approve you, they transfer the loan amount to your bank account, and the direct lender will collect your repayments at the completion of the loan.
Working with a direct lender may be less expensive because no broker fees are involved; however, finding one that suits you may take more time than using a broker.
What is a payday loan broker?
A payday loan broker is a small business or an individual who can assist you in getting a quick payday loan. They help clients understand the terminology and nuances of payday loans and various other financial products.
The primary purpose of brokers is to find the best payday loan for your particular needs by doing the work on your behalf. Following a discussion of your needs, a payday loan broker will search for lenders who can provide those services. They will research interest rates, additional costs, and repayment options on your behalf.
Firstly, a broker should understand the borrower’s specific needs: their financial profile, the amount they want to borrow, the purpose of the loan, and the length of time they would like to take out the loan. Brokers can compare options using this information to determine which lender is best for their clients.
You can apply for payday loans from a direct lender, a broker, or a loan connection service provider.
What are the benefits of going directly to a lender?
There are many benefits to dealing with a lender directly. You won’t experience any delays if you get a payday loan directly from a direct lender. You can avoid paying any broker fees if you choose a direct lender.
Payday loans are already a costly method of borrowing, and adding additional fees on top can make them even more challenging to repay. Going direct will allow you to save some cash by cutting out the intermediary.
While a broker can help you compare loans, choosing direct lenders doesn’t necessarily have to be that difficult.
Because you are dealing directly with the lender, you will usually get a loan decision faster. This is because the lender is both looking at your application information and making a loan decision at the same time.
What are the advantages of using a broker?
One of the key advantages of working with a payday loan broker is that they might discover more possibilities for quick loans than you may be able to.
Some consumers are concerned with obtaining the lowest possible interest rate on their payday loans, whereas others may be looking for a loan that will offer a substantial amount. A broker will assess your requirements and recommend the best payday loan for you.
Some brokers can negotiate special terms or better interest rates because they have frequently developed contacts with their lenders. Brokers are not only knowledgeable about payday loans but also specialists in their field.
They can clearly explain their processes and tell you how much it will cost and when payments are due. Payday loan brokers, like direct lenders, must follow the Consumer Financial Protection Bureau’s regulations.
Furthermore, they frequently have exclusive access to particular financial products that are not readily available to the general public, including loans for people with very bad credit. A broker’s job is to keep close ties with the lenders in their network. As a result, they often have access to better rates or loan arrangements.
Are there any other alternatives?
Yes. There are companies, such as Loanza, who are not lenders, not brokers, but loan connection service providers.
What does this mean? This means that they have a large network of payday lenders to connect borrowers with. However, the process is fully online and automated. By filling out an online form with your details, the loan connection service provider’s system will assess your information, search through its database of lenders in a matter of seconds, and connects you to a lender that suits your circumstances.
What about the advantages? At Loanza, we don’t charge any fees for our service – most loan connection services don’t. Searching for a loan with us won’t harm your credit score either. You can avoid going from lender to lender and try our free, fast, online service to see if you get connected to a payday loans direct lender that you’re happy with.