Direct Payday Loan Lenders

1. Direct Payday Loan Lenders

2. We all know where pay day loans come from, they come from the bank, yet you’ve heard of the “pay day loan broker”. What is exactly different when you try to acquire your pay day loan direct from the lender? Turns out, it’s huge. Knowing these differences will save you thousands.

3. A pay day loan broker do not lend any money. They don’t “buy and sell” pay day loans. A pay day loan broker acts as a mediator from the borrower to a pay day loan company. It’s not necessarily more expensive to use a pay day loan broker. Brokers get their rates as brokerage fees, which is way below than what the borrower can find at a bank. You make a pay day loan application with a broker who documents the file then sends the loan to the direct pay day loan lender who ultimately makes the pay day loan decision. When you work through a direct pay day loan lender, you apply directly to the company who documents, approves and funds your pay day loan. Which has some major advantages.

4. A direct pay day loan lender is a direct lenders. A direct lenders can be part of a larger financial institution like a bank or offer investment advice, checking and savings accounts, stuff like that. A direct lenders can also be a direct lender who does one thing officially, approve and fund pay day loans.

6. Banks may not always offer the lowest interest rates, it may even be higher than most other offers. Banks have your checking account so they have your inherent trust. And if you already have had loan transactions with them in past, the trust can lead to slightly lower pay day loan rates. Established direct lenders have built their reputation slowly with unblemished reputation. Direct lenders also know that they don’t ran as high as a national bank, that why they could provide you more competitive pay day loan rates at a lower cost than a bank would.

7. Yet even though a direct lenders can have lower pay day loan but that won’t mean anything if the loan doesn’t get paid off. And the possibility of not paying off is heightened when they lose control over the approval process. Any third party mediator in this business could be deemed as “friction” which takes the control out of the borrower’s and lender’s hand. If you take a pay day loan application with a broker then there is an automatic delay in the approval process because here direct communication is taking a hit. Missing out on small information details as misspelled names are a common but critically important discrepancy which needs to be addressed before the deal goes off.

8. With a pay day loan broker, the lender has to contact the broker who in turn will ask the borrower questions and this escapade goes back and forth forever. With a direct pay day loan lender, the lender can contact you directly and ask, then they document the discrepancy and the process moves on. Which results in a better overall transaction and much less headache. But this was only a small issue, imagine the plight of going for a broker when a big Issue comes up.

10. In terms of speed, reliability and competitive interest rates when you are applying for a conventional pay day loan, then a direct lender should be your obvious choice. Getting a perfect pay day loan always gets better when you know that you got the best deal out of the situation. It is comforting to know that you are still happy after a month when the pay day comes up seeing the interest rates because you knew from the get go what you were signing for. To find the perfect deal though, you have to begin with a decision as whether to go with a direct lender or a pay day loan broker. Here are some pointers for you as to why a direct lender may be better than the loan broker.

11. While there are certainly a number of reasons that make the pay day loan brokers appear like a credible option, but there are also some things to consider that may say differently. One thing that could make the direct lender an obvious better way to go would be if you already have a pay day loan with that bank. It is possible due to the reason that they already have your paperwork so you will be able to save on a lot of money while getting a second pay day loan in the terms of interest. It may also be better because many lenders give you a discount if you have more than one pay day loan with that same bank.

12. Another advantage is that a broker may contact a direct lender in other parts of the country to work out the best possible deal that both earns him a brokerage fee and commission. This could result in slowing down of the pay day loan process, which could delay your pay day loan and possibly set back the closing date. A local pay day lending institution would be much faster in getting you the loan you are looking for in a small amount of time because the documents required are really simple and the process does not take much time to validate the credentials. 

14. Many borrowers choose to go for a pay day loan broker thinking their poor credit could affect the loan applications approval, but most direct pay day lenders lend to people even if they have bad credit rating. So in a lot of ways by not going through a direct lender will define how in the next years your financial status will work out.

15. For more information go homepage: www.trueblueloan.co.uk

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