Direct payday lenders provide you with direct access to the short-term cash that you are seeking. When compared with a payday loan broker, payday loans by direct lenders do not need to find you different loans through a network of loan providers, they are not the middle-men in the operation. Instead, you are being sent the loan from the very company you are dealing with.
It is always the best option to look at different lenders, both direct lender loans and those offering payday loans through a broker system, in order to get a feel for the right move you should make on a personal level. There are several benefits to both, but here, we’ll take a look at direct payday lenders and how they can benefit you as a borrower looking for some short-term financial respite.
What are the Benefits of Seeking Payday Loans through Direct Lenders?
Immediately, there is one major difference and benefit. Instead of working with a broker payday loan company, you are dealing with the lender directly. The contacts you make are those handling your loan application and working out the detail of the loan, making the decisions on your payday loan application, and then sending you the money. With direct lender loans it is your contact who is dealing with the repayment structure.
Cutting out the middle man could save you money in the long-term, because the brokerage fees are not part of the calculations when you are first applying for a short-term loan. It means that you have complete control over your loan choice, finding the best short-term financial solution for your requirements, without relying on a broker to find it for you.
What to Know About Direct Payday Lenders
If you are looking to take on any form of credit, you should be fully informed. Assess your financial situation and look at whether you can actually afford to take out a loan at all. Through direct payday loan lenders, you can gain access to financial assistance, even with bad credit, but if you do not have the income to make repayments, this does not matter.
It is likely that there are fewer costs associated with a direct loan lender than a broker, but remember that a broker will have access to a wider selection of potential loans that fit a wider array of qualifying criteria, so it is always swings and roundabouts with any financial decision you make.
All payday loans through direct lenders in the UK are regulated. The Financial Conduct Authority (FCA) ensure that all direct payday lenders act fairly towards customers and that they are checked rigorously and regularly.
If you are looking for different ways in which you can apply for a loan, you’ll notice that there are many different options. Whether you are searching for payday loans through direct lenders, or payday loans through a broker, you’ll have to do your homework and put together a full piece of information that allows you to be fully informed before making a decision about which company to borrow money through. There are pros and cons to direct payday lenders and brokers that provide payday loans. It is always a personal choice, and should be a decision made with the best intentions and complete honesty over whether you can afford the repayments before agreeing to borrow the money.