A payday cash advance from a direct lender has some district advantages over a loan that might obtained from the alternative loan sources, such as a payday lender, a broker, or a loan store, and they are usually a lot cheaper as well. If you ever find yourself in need of an advance on your next pay check, here are the reasons why you should look at the possibility of borrowing from a direct lender.
Easy application process
The best way to apply for a loan from a direct lender is to use an online loan matching service. The best of these sites are 100% free to use and the application process is very simple. You just need to complete a very simple, secure online form and then the website will attempt to match your details to a direct lender who may offer you a loan.
Convenient and confidential
When you apply for direct lender loan, the whole process is completed online in the privacy of your own home. You don’t have to wait in line at a loan shop and you don’t have to deal a pushy salesman. In fact, you can take all the time you need to read the terms and conditions of any loan that is offered to you and make sure that you 100% happy with it before you proceed with the loan.
Fast and efficient
It usually only takes five minutes or so, at the most, to complete the online form and be presented with a loan proposal. If you are offered a loan and you accept it, you can usually expect the funds to have been cleared in your checking account by the end of the next business day.
Poor Credit History is not a Barrier to Applying
While major banks might be reluctant to lend to people who have a low credit rating, direct lender loan companies close to you are far more realistic about their lending. The requirements that a direct ender will usually ask of borrower are that they are a US citizen, aged 18 or over, and that they have a checking account and a regular income. Direct lenders may carry out a credit check, but that is not usually done through the major credit reference agencies, so it won’t adversely affect your credit score. Direct lenders are more concerned about a person’s current position than they are about their past.
Reasonable finance charges and interest rates
The finance charges and interest rates that a direct lender will charge are usually far lower than those of a payday lender. Payday lenders will typically make a finance charge of around $10 to $30 for every $100 dollars borrowed and then they charge interest rates of anything up to an APR of 400%. Loan extensions or rollovers are also notoriously expensive with payday lenders.
A more reasonable approach to lending
If you fail to repay any loan on time and in full, the lender will, of course, take steps to recover the amount due. Whilst direct lenders may instigate collection activities to recover an outstanding loan, they are not usually known to use the same aggressive tactics that payday lenders have become so infamous for.
Many people need an advance on their pay check from time to time and that’s why payday loans exist. It’s always worth looking at direct lenders located nearby first as a source of a payday cash advance before you go to a payday lender, because direct lenders provide a stress free and cheaper alternative to the payday lenders and loan stores.