The Payday Lender Or the Payday Broker - Which Option Is Right for You?
Sometimes the time between your pay days may be a bit challenging. Having an immediate and quick access to cash makes the wait until you get the next payday easier. When considering payday loan, one of the most vital decisions you have to make is whether to use a direct payday lender or a broker. There are several benefits associated with direct payday lenders that are often overlooked.
Direct payday loans are essential especially when you are trying to cover an unexpected expense. These loans are available unsecured needing no collateral. Therefore, everyone with a source of income that is dependable and regular is eligible. Here are some of the reasons why direct payday lenders offer the best deal.
1. Quick approval time
When you are in need of emergency cash, it is impossible to wait for weeks for the approval letter. A direct lender helps you avoid the middle man and hence save days of waiting for the loan decision. Average approval time for the direct payday lenders is one to two hours versus four to five hours for loan matching services and brokers. Additionally, the direct lenders have established strong working relationships with major banks and your funds can be directly deposited on the same day. Redwallet can even offer one hour loan transfers and instant approval.
2. Lower fees
Loan matching companies make money by selling the applicant’s name for a commission on the lead, which is eventually passed on to the borrower. Dealing with a payday lender directly helps you receive a lover APR (Annual Percentage Rate) and lower fee payments for the money you have borrowed.
3. Privacy protection
In most cases, when you are applying for the cash advance loan, you are often in a delicate situation. In order to control the number of individuals who know about your application, you need to limit the number of people and companies involved. When you apply for a payday loan through a broker, you give out your personal information twice; once to the broker and also to the actual lender. Therefore, with today’s risk of identity theft and stolen information, savvy borrowers go to the direct payday lenders.
The sneaky techniques that most companies use to make additional cash have become a major concern especially when working with payday loan matching services. Therefore, it is important to look for reputable payday loan organizations that disclose their fees, comply with government regulations, have working phone numbers and are members of trade organizations. Direct lenders have several years of experience especially with short term loans.
5. Informed decision making
When you have questions about your loan, you need honest answers quickly. Most brokers can provide basic answers but they must refer you to the actual lender. Such transfers cost a lot of time and they can even delay the loan approval. The loan providers need to furnish you with details such as;
• The repayment period
• Loan minimum and maximum
• The maximum number of loans you can take out at once
• What happens in case of default
• The procedure of cancelling the loan agreement in case you change your mind
Working with direct payday lenders assures you that you are getting vital information directly from the original lender. Therefore, you can make informed financial decisions based on correct facts and details.
Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk