What is the direct payday loan? What does the term “direct lender” mean? What is the difference between a direct lender and a broker? What are the pros and cons of opting for a broker or direct lender? We will try to answer all those questions in this particular article.
First of all, let’s define the term “direct lender”. It is actually the same as it sounds. It means that you sign an agreement directly with the lender, who then transfers the necessary sum directly to your account. As for the application process, it is the same as when accessing $400 Loan online. You need to follow several steps and submit the info required. However, direct payday loans differ from financial services provided by third parties and brokers.
Direct Payday Lenders VS Brokers
The main problem about brokers is the fact they establish extra fees for their services. Even the application process may cost you a couple of bucks. Direct lenders never deal with commissions or other fees. They only establish an interest rate and the period you need to repay. The main benefits of opting for direct lenders are as follows:
- Fast Access to Loan – fast processing is the key benefit of payday loans. No paperwork or time-consuming operations with the documents. You can apply online within a couple of minutes;
- Direct Depositing – no third parties means that a lender will transfer a necessary sum directly to your account. It results in no delays, no extra fees for transferring funds;
- Fast Approval – direct lenders do not check your credit score. It results in faster approval. Moreover, almost 100% of borrowers get their money despite the credit;
- Bad Credit Loans – payday loans are available for borrowers with any credit rates. All you need is to have a steady wage and the ability to repay your debt within the given timeframes.
All you need is to choose a website with a huge lenders’ network and start the application process.
Why Should I Avoid Brokers?
Like any third party or subsidiary, brokers do not provide payday loans directly. For this reason, they usually establish fees for their services. Moreover, brokers earn from commissions provided by lenders and other financial organizations. It results in higher rates and costs for the services. Although brokers can still be safe and secure for applying, they are hardly a cost-effective solution.
Think twice before applying for a payday loan, no matter if it comes to a direct lender or broker. You need to make wise decisions and access a loan only in case you really need it or 100% sure you are able to repay. If you face unexpected budget troubles, make sure you choose a proper service provider with a flawless reputation on the web.
Choosing a Payday Loan Lender
While all lenders establish general requirements to their borrowers, you can also choose a payday loan provider in accordance with some baseline parameters. It will let you avoid any risk of fraud and fake lenders. The main idea is to access a safe and secure loan with no hidden risks, charges and costs. For this reason, you need to perform an in-depth research instead of opting for the first lender with slightly attractive conditions.
Search for reviews, recommendations, and testimonials. Use official databases and lists of authorized and licensed companies. Opt for lenders that use SSL-encryption to protect your personal info in addition to HTTPS protocols and other means to ensure 100% safety. Direct lenders with no third parties might appear to be a handy instrument when resolving your urgent budget issues.