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Using a Middleman vs. Direct Lender for Payday Loans

When you are trying to get a payday loan today, you may want to use a service that can connect you with the right lender. This sort of “middleman” can be very useful when you are trying to get one of these loans, but it’s important to consider going through a direct lender. When you take the time to weigh these options, you can make the right overall decision. You don’t want to move forward until you take the time to look at both of these options.

What is a Middleman?

A middleman in the borrowing world is a business or website that helps to connect you with a lender to match your needs. You fill out an initial application the states what you are looking for in a loan so they have something to go off of. These businesses typically have an entire network of lenders that they send your information out to.

Benefits of Using a Middleman for a Payday Loan

There are some key benefits to using a middleman when looking for a payday loan, including:

  • Save time: Using this sort of middleman service can potentially help you to save yourself quite a bit of time. You won’t have to spend a lot of time researching individual lenders, as the service will do this for you.
  • Large networks of lenders: Most of these businesses have networks that are made up of dozens or even hundreds of lenders. This increases your chances of finding the right lender to match your needs exactly.
  • Fast process: You shouldn’t have to wait very long to get a match with a lender that can provide you with the loan you need. Most of these services get back to their clients within 24 hours of receiving the initial application.

Drawbacks of Using a Middleman

You will also need to review some of the drawbacks associated with using a middleman to get you a payday loan.

  • It’s less secure: Using a middleman to obtain a payday loan is inherently less secure because your information is given to so many different lenders. This increases the potential for identity theft and other issues.
  • You might need to pay: Some middlemen services that help people find lenders charge a fee for their services. Sometimes the fee is collected from the customer, while other businesses get it from the actual lenders.

What is a Direct Lender?

A direct lender is the actual private lending company that gives out payday loans. If you get a loan from a direct lender, you aren’t going through a middleman at all. It is essentially when you go on a lender’s website and fill out an application with them.

Benefits of Using a Direct Lender for a Payday Loan

Some of the main benefits of using a direct lender for a payday loan include:

  • It’s secure: Assuming that you apply for a payday loan on a secure website, you should have nothing to worry about. The information that you submit will only go to the one lender. There is a very slim chance of your personal details falling into the wrong hands.
  • The personal touch: Some people prefer to look for a direct lender to borrow from on their own. This will give you complete control over who you borrow from. You won’t be depending on anyone else to meet your needs.
  • No fee: There is usually no fee for just filling out a payday loan application on a direct lender’s website. This will help you save a little bit of money, which is always nice.

Why Get a Payday Loan?

There are tons of different reasons to consider getting a payday loan. These loans can be very helpful when you are in a pinch and need fast cash. If you are approved, you can get the money you need the same day that you apply. This has become of the most popular borrowing options for people with bad credit. The standards for approval aren’t nearly as high as with bank loans. This means that you probably have a pretty good shot at getting approved.

Before you decide to go through a direct lender or use a middleman for your payday loan, it is crucial that you examine the facts. This will help you to choose an option that will benefit you the most. A lot of people choose to go through direct lenders because it gives them the ability to research lenders themselves in depth. If you are going to go this route, make sure that you take a close look at some of your options. You don’t want to choose the wrong lender, because it can mean a lot of frustration and problems later on.

Facts About Payday Loans That Will Change Your Mind

If you are a bit hesitant about getting a payday loan like so many others, there are certain facts you will need to learn. These facts can help change your mind so you can get the money you need right away. You should never make any decision when it comes to borrow money before you learn everything there is to know about your options. This article will present you with some interesting and useful facts about these loans that you need to be aware of.

You Don’t Need Good Credit

You certainly don’t need to have good credit (or any credit history at all) to get approved for a payday loan. Those with low scores and spotty histories can still get the money they need from one of these private lenders. You won’t find many other types of loans that will accept bad credit applicants like this one. This is why so many people who get denied by their banks end up getting a payday loan.

It is a Great Option for Business Owners

Even entrepreneurs can make good use of payday loans. If you require funds to bring your business to the next level, a payday loan can be incredibly helpful. As long as you can prove to the lender that you have adequate income, you shouldn’t encounter any problems. Thousands of businesses in the U.S. benefit from these loans on a regular basis in one way or another.

They Are in Fact Regulated

There are in fact regulations regarding payday loans in a number of states throughout the country. It is a good idea for you to check to see what regulations your state has regarding payday loans before getting one. Some states make it so that you can only borrow up to a specific amount. These regulations are designed to protect borrowers, so they ultimately work in your favor.

The Interests Rates Aren’t That Bad

Payday loans get a bad rap for charging ridiculously high interest rates. The truth of the matter is that they aren’t all that bad for most people. The rate you get will depend on multiple factors, including what your credit is like and the lender you borrow from. This is why it is so important that you take the time to explore your lender options. You don’t have to settle for an ungodly high rate as long as you spend some time doing your research.

The Terms are Highly Flexible

A majority of payday loan lenders are very flexible with the terms they give to borrowers. You could get over a month to pay back the money you borrow, depending on what the total amount is. This means that you will have plenty of time to return the money so you won’t have to worry about defaulting. A lot of lenders give people two weeks to pay back the money, but this isn’t always the case. It is largely up for negotiation, so you need to keep that in mind.

Most People Get Their Funds Within 24 Hours

When you need to borrow money in a hurry, you will need to seriously consider getting a payday loan. It can provide you with a fast and effective way to borrow money when you really need it. A vast majority of people who get approved receive their funds in their bank accounts just hours later. This is a very quick process that you really have to experience to believe yourself.

The Average Application Only Takes 10 Minutes

You won’t have to worry about spending a lot of time filling out a long application to get your payday loan. These applications tend to be very short and straightforward. You will be required to submit some standard details for the lender, but it’s all quite painless. Unlike most bank loans, these don’t make you spend an hour filling out useless details.

You Can Use the Money for Anything

Private lenders really don’t care what you use the money for, so you can spend it on anything. Whether it is for your own wedding or perhaps an essential car repair, you won’t have to answer any questions from the lender. This gives you complete freedom to use the funds you receive however you see fit.

Despite the somewhat negative reputation payday loans have in our society, they can be extremely beneficial for a huge number of people. There are still many people who don’t get these loans because they just don’t have all the facts. When you actually learn about payday loans and what they offer, you too can reap their many benefits. It is far and away the best borrowing option when you are in dire need of financial assistance. No matter what you need the money for, this is an option you should research in depth.