When you find yourself in a financial rut and with no other source of funds, many Americans turn to payday loans for refuge. These types of short-term loans, which are typically set against your actual regular salary, come with much higher interest rates compared to traditional loans, but they remain a popular and practical option for many regular households that are in need of quick cash.
In shopping for the right short-term unsecured loan provider online, you will find that you get more benefits if you go for a payday advance loans online direct lenders. We highlight direct payday loans here because there are basically two types of lending agencies online. One is a third-party agency, which collects information about different lenders and is the one that connects you to them, while the other is the lending agency itself, with whom you transact directly.
3 Reasons Why Direct Payday Loans Are Preferred
The most direct way to obtain a loan is to go straight to the source itself. While going through middlemen is convenient because they already give you a comparison and will look for the best possible deal for you, this service comes with a cost. Here are three reasons why you should choose direct payday loans, instead.
- There are no added fees.
The broker is not the lender, so technically you are hiring somebody to do the researching and loans processing for you. If you are already in a tight bind, you simply cannot afford to receive less than your best possible maximum amount just because you need to pay service and administration fees. It is expensive for companies to acquire a new borrower due to the amount of work and resources needed to process everything. Your best bet in getting the lowest transaction fees would be to transact with the lender itself.
- There’s no risk of fraud.
Direct lenders will outwardly provide all its rates and terms of payment before you even apply so you know right away what you’re getting. If you go through a broker, you expose your personal and financial details to people who will not be lending you any money. Plus, there are plenty of scam sites online that are only out to get your private details for unscrupulous activities.
- Third party agencies or brokers have no accountability.
Direct payday loan lenders operate according to industry standards and are very upfront and clear about their policies. While its rates are not exactly consumer-friendly, they are most likely state regulated, thus giving you some form of protection. It’s also good to find out if the direct lender is a member of the CFSA, which is a trade group that oversees activities of payday loan companies.
When looking for a direct payday loan company, always perform due diligence and make sure that you are transacting with a legitimate site. Don’t just go with the first company that turns up at searches. Compare rates, read reviews, or ask family and friends who have tried it previously before signing any agreement.