If you are choosing the payday loan lender, then you have definitely faced the problem which service to give preference to: payday loan direct lenders or the lenders, who are called brokers or agents. In order to make sure that your choice is going to fully satisfy you, it is recommended to learn more about differences of these two types of short-term lenders providing customers with the same result but using different methods.
Each thing has its pros and cons and getting payday loans from both direct lenders and agents is not an exception. Before taking the reasonable decision concerning payday loans online, you are offered to find out more about the main features of the above mentioned lenders and use your chance to compare which advantages you would like to get applying for one of them and which disadvantages aren’t very serious for me.
Two Types of Payday Loan Lenders
After taking a decision to get a short-term loan, the next step will be to choose among the provider of this service. Each customer should know that there is no such a definition like an indirect lender as you get money only from direct lenders. However, there are brokers, who give you a chance to choose among their network of direct lenders. Such agents play a role of intermediaries performing the function of the link between the customer and the direct lender.
Each type of lender can offer you certain benefits, however, as any thing may have its drawbacks, here you may find definite disadvantages of each type of lending as well. But things, which can be called drawbacks for one customer, may become advantages for other borrowers. That’s why it is up to you to decide, which lending services you find more suitable for your current financial situation.
Choosing a Payday Loan Broker, You Are Going To Get
- An ability to choose among a great number of reputable payday loan lenders.
- 100% Guarantee of safe and secure money transfer.
- Instant approval, which takes minutes.
- Offers from payday lenders, which have been adjusted to your requirements and current financial problems.
- Only best matches to choose from.
Why Many Customers Prefer Direct Payday Loan Lenders
If you have faced financial crisis or you are taking risks to find yourself in some trouble because of not having enough finance to cover certain expenditures, you need to choose the lender first. And here the question is whom to choose and why? Many people believe that borrowing from direct lenders is much safer compared to the so-called middlemen or brokers. Such opinion has originated because such lending companies play the role of the third party. However, nothing to worry about if you choose brokers when you want to get a payday advance online as all direct lenders, who they cooperate with, are legitimate and work according to the regulations and laws.
Things You Can Benefit From Borrowing Money from Direct Lenders
- Fast processing of your personal information.
- Direct depositing of your loan into the banking account.
- Guaranteed approval in case of meeting minimum of basic requirements.
- Up to 1000$ for any purpose you have.
- Approval of any credit, including poor credit rating.
3 Main Myths about Payday Loan Brokers
In case you hesitate, whose services to choose, you may ask those who have already used the services of brokers and left their reviews at the lender’s website. It would be much better than listening to the most common opinions about brokers’ lending services, which are completely mistaken.
Check out most well-known mistakes borrowers do, when they avoid using payday loan services from brokers. Let’s unmask three myths about payday loan lenders called intermediaries:
Myth number 1: Applying for payday loans offered by brokers you take risks of being cheated
Most borrowers will be surprised to hear that getting money from payday loan brokers may be even safer than choosing a direct lender by your own. It is a common mistake of most customers to avoid agents’ services because they think that their personal data is not protected enough. However, it is not true as applying for a loan via broker you get double protection.
Encryption of each customer’s information and the best reliable lender chosen taking into account your individual requirements is your guarantee of receiving safe instant money.
Myth number 2: Large fees are included into brokers’ services
This is true that you pay more choosing brokers’ services in comparison with direct lenders but the fees are not so great to refuse paying for comfort and safety of provided high-quality services. It is natural to pay for things done instead of you. You don’t think that something wrong is with the company, which doesn’t have free goods delivery or that car repair services cost you money. Here the situation is the same as you pay brokers for finding the best match according to your requirements and circumstances. No need to spend time and look for the direct lender. Paying a bit higher price to professionals you have a chance to skip several necessary stages, which include time and energy, in some cases even nerves as you need to check how reliable the direct lender is. Better to pay higher fees than to take a wrong decision concerning the payday loan offer.
Myth number 3: Brokers promote their services with unfair actions
Thanks to being regulated by law, payday loans provide you with the 100% guarantee of safe offers without taking risks of being matched with a fraudster. Brokers have the wide network of direct lenders who provide payday loans on the legal basis.
Pros and Cons of Choosing Brokers to Get Payday Loans
Before taking a decision to give preference to brokers, when you have faced emergency and need money quickly, it is necessary to be aware of all advantages and disadvantages involved in this way of borrowing the short-term loan online. Here you are offered to check out all pros and cons, which you will face in case of using the payday loan services provided by the agents.
Pros of using payday loans from brokers:
- You shouldn’t spend time on a search of your perfect direct lender as the best match will be chosen by the broker among the great number of offers.
- You are able to save time and get money within one business day, which you could waste looking for the payday loan lender without the help of the broker.
- You may be 100% sure that your personal information is protected and nobody can steal any data provided via website thanks to the modern encryption system and legal practices.
Cons, which should be taken into account while choosing a broker:
- Applying for a payday loan via the mediator you don’t negotiate with your direct lender as in fact after signing an agreement you get your money directly into your banking account.
- Higher cost for the broker’s service as you need to pay additional fee, besides interest rate charged for the borrowed payday loan. Though you pay to get the work done for you, some customers may find it unsuitable for them due to the inability to pay more expensive price for the loan.
- In case some issue arises, you need to contact the broker first and only then if the situation is really serious, you will have the chance to talk to the direct lender. Communication via mediator may seem not so convenient and fast for some clients.
Facts to Take into Account before Selecting the Lender
- The procedures of money transfer as well as the payday loan withdrawal is held not via brokers but via the bank of your direct lender only
- It is necessary to be very careful looking for a payday loan lender without the help of the broker as first you need to do your best to make sure that you have high level of the privacy protection.
- Multiple offers provided by brokers mean that you can feel free to choose the best deal ever.
Top-3 Things to Keep in Mind for Successful Borrowing
- Do your best not to find yourself in the eternal cycle of debts using rollovers, if you realize that you can’t afford this. Rollovers are prohibited in some states but even in those states, where they are practiced, they are under strict control. Don’t have false expectations concerning your source of income and be wise accessing your financial situation.
- Be careful reading all the points in your contract before signing it and don’t hesitate to ask any questions you have before you agree on terms provided by the payday loan direct lender. You need to get all detailed information concerning the loan you are going to get and to find out everything about the payday loan lender you will get the loan from.
- Before choosing a payday loan as financial support being in trouble, it is recommended to check the laws and regulations of the state you reside in as there may be certain amount restrictions as well as some other terms, which may differ from state to state. This is necessary to make sure that you will be able to get an amount of loan you need as some states may have limits up to $500 instead of $1000. In case the payday loan lender has offered you $1000 when the state has the restriction to the smaller amount, you should think twice before accepting such offer as this payday loan lender is likely to be a lender working without license.
Quiz “Direct payday loan lender or payday loan broker?”
This quiz has been designed with the aim to help customers, who have any doubts facing the problem of choice, whom to choose as the payday loan provider: direct lender or the services of the payday loan agents. Answer the following questions:
- You need money quickly and don’t have time for looking for the trustworthy lender.
- You don’t know much about payday loan lenders as it is the first time when you have faced such emergency situation.
- You prefer discussing all issues, which arise directly with your payday loan lender without any third parties.
- You would like to have double protection of your personal data shared via the Internet.
- You find it very convenient to have an opportunity to choose among the large network of direct lenders.
- You don’t trust brokers as in your opinion they may share your personal information or use it in their own aims.
- You have some individual requirements to the payday loan terms and find it difficult to select an appropriate direct lender by your own.
- It is enough for you to communicate with your direct lender only during the process of signing a payday loan contract.
- You don’t want to pay more for the search of the best match as you think that you are able to find a good payday loan lender without agents’ assistance.
- You don’t want to do one more step asking the payday loan broker to give you the contacts of your direct lender in case of some questions you need to clear up.
If you have replied “Yes” to questions number 1,2,4,5,7,8 – You are recommended to use the services of a broker, if you apply for a short-term loan as you feel fine with all services provided by payday loan brokers.
If you have answered “Yes” to questions number 3,6,9,10 – You prefer getting the payday loan from the direct lender without anybody’s help.
After considering all information about the differences between a direct lender and a broker, it is up to you to decide, whose services you find more appropriate in the situation you have faced taking into account all advantages and disadvantages of both lenders. In case you are sure that you can’t fail choosing an offer you need now, then you can try luck spending time for the search of your payday loan lender without help of intermediaries, however, there are situations when it is worth paying higher fees in order not to lose more. And the choice of the right payday loan lender is one of these situations. Having in arsenal all necessary information, you are able to take well-informed decision now. Remember that you should take all responsibility as the effectiveness of a payday loan deal will depend not only on your lender but on how seriously you have taken each step forward it.