You might be tempted to take the first loan you can find if you need cash right now to rent or buy a car, get your career back on the track, or pay other life costs.
Taking the tiny extra step of ensuring that you deal with a direct investor, though, can save you cash and protect your privacy. It can also save you time.
Payday Loans from a direct payday lender
There are two ways you can get a direct payday loan:
- From a direct lender
- From a third-party lender
Direct Payday Lenders vs. Third Party Lenders
Direct lending is clearer and simpler. You need money and the terms are stipulated when you go to get credit. Usually this entails the following:
- An application;
- A formal request for some amount of money;
- Proof of payment;
- Interaction with customer service if you need help.
In contrast, a loan by a third party middleman introduces additional complexity. On a finance website or forum, you might see an advertisement for a payday loan, or you might see a website that looks like a payday lender.
You might apply assuming you’re applying for a loan, but what actually happens is that the intermediary takes your data and sends it to several different lenders to see whether they’re going to accept you.
Why Get a Payday Loan From a Direct Lender
When dealing for a direct lender, there are potentially some incentives.
- Lower expenses. If a middleman helps a lender locate a buyer (you), the middleman usually gets paid. This could come as a different broker’s fee, but it might be a fee that you pay via a higher interest rate or loan premium more frequently. Direct lenders don’t have to carry on to you this additional expense.
- Secure your secrecy. You do not know who the data would be submitted to by a third party lender. You can’t investigate their lenders to figure out if they’re good at protecting your privacy, even if they claim they’re just going to use your details for a loan. You know precisely where the data is heading when you negotiate with a direct lender.
- Customer care Transparent. You will go to the same location as a direct lender for support, whether it be for questions before applying or helping to make the payment. You don’t have to find out which third party manages each part of the operation of the loan.