Direct lenders process your application immediately, whereas indirect lenders pass on your details to a third part thus incurring a time penalty due to the extra stage involved. A time penalty which will cost the borrower in the form of fees!
Brokers must operate within the limitations and terms set by the lenders with whom they deal – they are less flexible. Direct payday loan lenders are able to offer more flexible terms and adapt their policies due simply to the fact that it is their own money that they are lending.
You will find more brokers than direct lenders online, but direct lenders have an advantage in that they may also be able to offer other types of loan, such as car finance, for instance. Direct payday loan lenders make decisions based on their own criteria, and can therefore process an application far quicker. Once approved, they will be able to transfer the funds to the borrower’s account instantly. The entire process rarely takes more than a day with two- and four-week terms being usual.
Although the prerequisites are the same for both, direct payday loan lenders will always be able to process the application faster. If you are at least eighteen years of age, have an open bank account which is in credit, and a monthly income of at least $1000, you are eligible for a payday loan. Loan repayment will be automatically drawn on the specified date from the same account to which the loan was originally credited.
Regulations regarding payday loans vary from State to State and affect the following:
• number of simultaneous loans
• period between loans
• consecutive loans without a break
• early repayment
The above regulations should be taken into account if you are considering taking a loan with direct payday loan lenders, and it could be to your advantage to locate one in your own State.
If you are having difficulty maintaining your repayments, you should contact the lender who will help you to modify your repayment terms to overcome the situation. This is important as it could affect your future credit score.
This type of loan is usually offered in amounts between $100 and $1500. Certain direct payday loan lenders may offer installment loans for auto finance which will be much higher, but the amount is linked to your income. Direct lenders are faster but it is a good idea to compare a few to find the best possible deal. Research a lender and read reviews before committing yourself and ask questions if you are not sure. You will be rewarded for this when you obtain better terms and conditions.
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