Why Direct Lenders?

Payday Or Short Term Loans - Broker Versus Direct Lenders

Today, more and more people are shunning bank loans and turning to payday loans instead to meet their short-term financial requirements. Considering the benefits that payday loans offer over bank loans, it’s not surprising. Payday loans are approved faster, which means you get access to quick cash. Moreover, the eligibility requirements are minimum and there are no credit checks conducted so you can get a loan no matter how bad your credit history.

How do payday loans work? 

It’s simple. When you need cash in hand to meet an emergency expenditure, you simply apply online to one of the many lenders available, submit your details and your loan gets approved within twenty-four hours.
Unfortunately, because most people who apply for these loans are in a hurry, they do not read the fine print, resulting in them paying more than they actually need to. What you need to know is that when you search online, out of the hundreds of companies that are listed, only a few are actual direct lenders. The others are brokers who act as intermediaries. They just give you information about direct lenders and for that service they charge you a fee.
 Take a look at why it is far better to only deal with direct lenders and to avoid dealing with brokers.

Dealing With Direct Lenders

Direct Lenders are not brokers. When you submit an application to a direct lender, you are dealing with them directly. When your loan is approved, the sum you receive into your bank will be the amount stated in the approval. There will not be any additional fees deducted from the amount. Direct lenders do not charge any kind of service fees.
Another big concern for most people is regarding the safety of giving their personal details to an unknown entity on the internet. In this respect, direct lenders are very discreet. When you are dealing with direct lenders, you can be assured that your personal details will not be misused and will not be given out to anybody. It is very important for direct lenders to maintain a stellar reputation. They are not likely to do anything to jeopardise their reputation and this includes keeping your details confidential.

Dealing With Brokers

Brokers are essentially middle men. They are not the ones giving you the loan. They are simply providing you a service, which is to collect information from different lenders and provide that information to you. For this service they charge you a service fee.
When you go through a broker, when the money comes into your bank you will find that it is less than the amount agreed upon. That is because the broker’s fee has been deducted from the amount. This is an unnecessary expense. If you spend a little bit of time going through different lenders’ sites, you can get all of the information you need yourself.
In addition, when you go through a broker, you could be compromising your personal details. Brokers are not registered companies so you do not know who you are dealing with. While all brokers are not necessarily unscrupulous, you are still taking a risk and it’s one that you do not want to take.

If you are looking for a payday loan, it does pay to take some time to ensure that you are in fact applying directly to a direct lender and not going through a broker.