Direct Lenders for Payday Loans: What You Should Know

While there’s an upside to getting a loan from an investment broker (loan agency), dealing with a direct lender for payday loans has more benefits. For one thing, you get to avoid broker registration fees and other associated costs. 

To help you better understand how payday loans from direct lenders work and what you stand to gain, we’ll discuss them in detail and how they compare against brokers. You’ll also learn about the benefits of using these direct loan lenders and how to search for one. 

What this article covers:

Who Are Direct Lenders?

Direct lenders are financial institutions that offer small payday loans directly to the borrower. They can include banks, online lenders, and credit unions. 

Online loans from direct lenders are usually processed in a shorter time compared to those from brokers. This is because, with the former, your details and application request go directly to the lender. But the latter requires several processes, including sorting out your loan application, filling it out, and forwarding it to several lenders, who may or may not consider your application. 

The process of obtaining a loan from a broker is complicated, and you may not be able to access 24/7 payday loans as you can with direct lenders. 

direct lender for payday loans

Why Use Direct Lender Loans?

If you’re still on the fence about whether or not direct lenders compare well with brokers, here are five reasons: 

Secures Sensitive Details 

Signing up with a broker to take out an urgent payday loan when you’re in a tight corner is no crime. But while this is true, you’ll be permitting them to distribute your sensitive information. How? 

Brokers have a database of direct lenders (some of which might not be licensed). They do the homework for you; they take your financial and personal details, as the case may be, and pair you with a suitable lender. To achieve this, they forward your details to the available lenders in their database. 

However, your information stays in the database of a direct lender if you’re dealing with one. In this case, there’s no need to forward your information outside of the lending firm. 

direct lenders for payday loans

Prevents Spam Mails 

Sharing your details with several lenders can result in unwanted emails from unknown sources. While some of these emails might be legit based on the lender offering you a loan, others might be spammy with clickbait titles. 

For instance, spam mail may have a title assuring you of guaranteed payday loans on their site. Loan sharks and fraudulent lenders use this to attract unsuspecting customers. 

Meanwhile, applying for a direct lender loan will ensure that your contact information is only shared with relevant offices within the firm. Hence, you only get emails from them. 

You can turn on spam protection in your mail settings if you’re already getting spam emails from unrecognised sources. Also, find and use the unsubscribe button at the end of the mail. 

Provides Direct Customer Service 

Access to customer service is vital when taking out a loan. You might have a few questions that require clarification, and not knowing the correct sources to contact can be an issue. 

Using brokers to get a quick cash payday loan can put you in this spot. Because you don’t have contact with the lenders, you can only contact the brokers, who might not have answers to your questions. 

On the flip side, payday loans with direct lenders offer direct contact with a professional customer service representative.

pay loans direct lenders

Ensures Quick Approval Process 

Direct lenders, as opposed to brokers, can provide 1hr payday loans. This is because your request goes directly to the lender’s system. And in cases where the lender uses an automated system, it gets approved instantly. 

Prevents Extra Fees on Middlemen 

Investment brokers might offer free services. However, you’ll have to pay to get on their premium list with verified lenders. 

While this might not be a terrible investment, you can skip paying such fees by contacting a reliable lender directly. 

What to Check Before Taking Direct Lender Payday Loans

Ready to get same-day payday loans from direct lenders? Here are a few things to check: 

Interest Rate Details 

Learning about how much interest you pay can help you make better financial plans for repayment. In fact, every reliable lender spells out this detail on their site. 

Some payday lenders use a fixed interest rate. So, you can expect to pay at least $15 for every $100 payday loan direct lender. 

payday loans lenders direct

Sites Security and Authenticity 

Reliable payday lenders ensure that their site security is up to date. This can help prevent stealing sensitive information or hacking profiles to take out loans. 

Trustworthy payday lenders provide more vital information on their sites, like interest rates, loan policies, repayment methods, and more. If a payday lender hoards information like this, that can be a red flag. 

License Information

Before taking short-term payday loans, verify the lender’s license information with the Australian Securities and Investment Commission (ASIC). 

The ASIC checks the activities of lenders and ensures that they set regulated interest rates. So, registering with a regulated payday lender in Australia can save you from exploitation. 

Registration Process

You can register online. The process usually takes less time. However, check the information requested before proceeding. 

Note that a reliable payday lender doesn’t request your credit card information or demand a pre-approval fee. If you feel uneasy about a service, maybe you should look elsewhere. 

payday loans with direct lenders

Conclusion

Brokers provide an easy means to reach several lenders and even compare rates at a glance, no doubt. But when it involves reliability and other benefits, using direct lenders for payday loans is more desirable. 

When searching for a direct lender, you can check interest rates, site security, the registration process, and license information. This will ensure that you receive the best services possible. 

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