Payday Loan Lenders

With salaries on the decline and overall employment at a static point, more Americans than ever are turning to payday loans and cash advances to assist with the expenses of everyday life. Built to help with the expense of everything from monthly bills and rental payments to unexpected charges, loans like these are designed to help people borrow money effectively for short, snappy amounts of time.

And in this way, they’re a massive success. Hundreds of thousands of Americans visited a payday lender in the last year, and it’s likely that just as many will make their way to the lenders’ stores in this year. With their finances in order but short-term expenses to tend to, almost all borrowers from these lenders are looking for a simple, sub-$500 loan to assist with bills, bargains, and payments.

It’s an age-old industry – one that’s been heavily used by all types of people for over one hundred years. But in this day and age, it’s growing more competitive than ever. There are thousands of top payday lenders out there, each claiming to offer the best possible rates. Which ones can you trust, and which are best ignored due to their poor loan offerings, high interest rates, and deceptive fees?

For the most part, payday loan lenders can be divided into two camps. The first is made up of direct payday loan lenders – lenders that finance their loans directly using their own capital, or work using a finance company that they have a direct link to. When you work with these lenders, you’re getting a direct payment into your account, rather than a loan redirected through several different lenders.

In the other camp is the second type of payday lender – the brokered lender. Much like brokers for insurance and mortgages work on behalf of a range of other companies – each offering them a nice commission, of course – non-direct payday loan lenders broker the majority of their loans from an intermediary finance company. This results in lower risk for them as a broker, and simple business.

At first glance, particularly for consumers and borrowers, these two types of business look largely identical. However, they’re actually from identical. One offers fantastic deals to borrowers, a true service. The other can still offer competitively-priced and well-built loans to borrowers, but at worse rates than their competition due to their non-direct relationship and limited overall control.

Can you guess which is which? It’s far from difficult, of course. Direct payday loan lenders have a direct link with the money that they loan out to other people, allowing them to tailor their services on a case-by-case basis. In the end, this produces better service for borrowers as well as lenders, as the more tailored and specific a deal is, the greater its typical quality is for those involved with it.

Lenders that broker their deals, often as part of an online lending promotional program, just can’t match these rates and service levels. Their entire business is one step further down the line than a direct lender’s, putting them out of touch slightly with the process. As a result, they tend to have a higher fee and interest rate structure than their direct counterparts, while offering no extra service.

There’s a second aspect to working with a direct payday loan lender, one that’s often overlooked by borrowers. This is the speed of service and the availability to lending options. In any brokered type of business, there’s a delay between quote and execution. We’ve all worked with insurance brokers who promised to ‘get back to us immediately,’ then ended up taking several days to return a call.

That wasn’t a rude delay, but an uncontrollable one. When you opt for a cash advance or payday loan from a broker-based loan provider, you’ll end up being sucked into a lengthy application or qualifications process. It might take several days to receive your loan – several days that a lot of people in need of payday loans simply don’t have, particularly when there are unpaid bills looming.

In contrast, when you work with a direct payday loan lender, your application is typically processed in as little as one hour, and you may receive cash within the hour itself. This speeds up the process a great deal, making your cash more timely and convenient. This is the second key advantage of using direct payday loan lender only, along with their slightly lower rate structure.

Finally, there’s an extra advantage of working directly with a payday loan lender. While broker loan businesses are particularly present online, few have the offline footprint that a direct lender does. As a result, disputes with a broker loan provider tend to be one-sided and difficult to navigate. If you’re entered into a loan contract, it’s helpful to know that you’re working with a real, physical business.

From service to affordability, rates to speed, there are plenty of reasons to ignore second-tier lenders and work directly with the professionals. Offering rates and service that are second to none, a strong selection of different lending options, and interest rates that aren’t as predatory as the others, it’s best to choose a direct payday loan lender. Your cash, and often your financial future, may depend on it.

Related Information