What does “Direct Lender” mean?
Direct lenders, as opposed to brokers that deal with panels of lenders, allow you to apply for a loan directly with the loan provider, rather than going via a broker. Payday loan brokers act as a “middleman,” taking your information and submitting it to a number of direct lenders in order to get you approved for a loan rather than making the transaction themselves.
Due to the abundance of comparison websites and brokers operating in the market for online loans and short-term financing, it can be difficult to ascertain which company is the one that truly provides the loan. When applying for a small loan or a quick loan, you should avoid having to pay any upfront fees, hidden fees, or obligations that are buried in the fine print.
What are the benefits of applying for a Payday Loans Direct Lender online?
Loans against future paychecks are a well-known option for obtaining quick cash and money to cover unanticipated expenses. These include repairs for your home and vehicle, as well as other unexpected costs. Before settling on a choice about a payday loan, it is essential that you investigate all of the possibilities available to you. Due to the fact that the majority of payday loans are requested and funded online, a direct lender for payday loans offers the following significant benefits in practice:
More transparency is needed because when you utilize broker websites, you never know to who you are handing your information or where it is going to be used. When you are a customer, one of your primary concerns is likely the safety of the information you provide as well as the authenticity of the individuals with whom you do business.
The address of our website starts with “https” since it is stored on a server that provides security. All of the information that is submitted through our website is further protected by this layer of encryption. Your information will be handled in a secure manner, so you can unwind and enjoy yourself. Your application will be forwarded to our underwriting experts as soon as it is complete. At this point, we perform additional checks, and it’s possible that we’ll call you to verify certain information.
No Middlemen: In the past, the online loans industry was plagued by middlemen who passed along client information. Today, this problem has been eliminated. Candidates for payday loans consequently got dozens of unsolicited emails, texts, and phone calls offering short-term loans. Everything pertaining to payday bad credit is handled internally by our staff members and conducted under our roof; there are no third parties involved.
When obtaining a payday loan directly from PaydayNow, as opposed to going via a broker, there are no fees charged for “signing up” or “administrative.” This saves the borrower money. When you are in a financial bind, the last thing you want to happen is for money to be taken out of your bank account. How do you go about applying for a loan and having money taken out of your account? Because of this, direct lenders do not impose any application fees at the beginning of the lending process. You are simply going to be responsible for the daily interest that accumulates as well as any potential late fees.
How do I know if I’m applying for a payday loan directly?
If you want to determine whether or not a company is a direct lender, one of the quickest and easiest ways to do so is to check the FCA registry. This displays whether or not they hold a license to operate as a lender or a broker. If the latter is the case, it suggests that they do not provide direct borrowers with continuing support and instead only issue loans. This makes them indirect lenders.
One more method is reading the material shown on the page. According to the requirements of the FCA, brokers are obligated to identify themselves as such on their respective websites. The implication is that the customer should now have no questions or concerns. Check the footer by scrolling down to see if this information is readily available on the page you’re visiting.
In the body of the letter, you can also come across the phrases “guaranteed approval” or “our panel of lenders.” This demonstrates that they are most likely working with a number of different businesses and that they are not personally responsible for the underwriting of the loans.
Can I use a direct lender even if I have bad credit?
Yes! People with poor credit who have maybe had their loan applications rejected by typical lenders can find assistance here. It’s possible that you’ll end up with a low credit score if you have a history of paying late or missing payments on loans and credit cards.
Although we are aware that people go through difficult times, they nevertheless want to show that they are creditworthy. We take into consideration a variety of factors in addition to your credit score. If we conclude that you are able to afford the installments of the loan and that providing you with a loan will only help you improve your existing financial situation, then we will gladly review your application despite the fact that you have negative credit. Our mission is to provide assistance to individuals who have low credit scores in their pursuit of essential finance.