Using Direct Lenders For Payday Loans

| January 3, 2012

If you need to apply for a payday loan you have a few choices, one is to use a broker and the other is using direct lenders for payday loans. For this article we will focus on using a direct lender.

Payday loans are short term loans which you can get quickly for emergencies or other situations that arise. Many people are not aware that there are differences when it comes to lenders, lets take a look at how direct lenders work when it comes to payday loans.

Using a Direct Lender

Now a days the application process for obtaining a payday loan is pretty simple, you can do it online or over the phone. The requirements are also simple, the following are all that is needed: checking account, a job, $600.00 a month income (varies from lender to lender) and a home/work phone, that’s it.

The biggest advantage to using direct lenders for payday loans are fees, saving the cost of broker fees. Interest rates are a little different, they are regulated state by state so the interest charged is determined by where you live, but fees are different.

Since the payday loan industry is very competitive the fees charged by direct lenders is lower, this bodes well for the customer. This is also one reason you should shop around and compare the fee structures among direct lenders, you can save yourself a few dollars if you do this.

Direct lenders can process your application quicker compared to a broker who farms out your application for approval. If you know which direct lender you want to use the application and approval process can take place in as little as 15 minutes, that’s it.

One final thing we want to point out about using direct lenders for payday loans is getting future loans. Most lenders will not approve the maximum loan amount on your first application with them, they want to test you out before they increase your limit. So, if you use a direct lender, and like them, then next time you need a payday loan you will be able to get an increase on your loan amount much easier. Of course this is if you successfully paid off your first loan with them.

You may already know people who have used direct lenders for their payday loans and had a good experience, this may make it easy for you too. This can save you a lot of time compared to doing a search and going through the long list of results.

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Category: Payday Loan

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