What are Direct Payday Lenders

When it comes to the different types of online lenders there are several key differences to account for within the market place. Quite often many consumers are not aware of these differences and as such may not end up getting the product they originally had hoped for. Today we will be discussing the different type of lenders who offer borrowing resources online and how their service can vary. For the purpose of this article we are specifically referring to the payday loans market where a small sum of money is borrowed for an agreed period of time. Although there are several different ranges of borrowing which can be accessed online, the most commonly used is the payday loans market. These online loans are often now offered as installment loans instead of the more dated model known as the payday loan but ultimately these are all terminology for the same type of lending resource as described.

What are Direct Payday Lenders

For a consumer who is looking to borrow a small sum of money, there are several different choice to consider. Some of us may turn to our overdraft as a temporary measure for covering an unexpected cost, whereas others may use an existing resource such as a credit card. For consumers who have the ability to borrow a small sum of money from either their family or friends, this will of course be the cheapest option. Outside of these options for borrowing a small sum of money there is online borrowing. As mentioned above the online market for borrowing money comes in several different shapes and sizes so to speak. This is because there are different types of lenders who operate within the market place. Take for example the direct payday lenders. Direct payday lenders are the lenders who offer a borrowing service in a direct manner and this means an applicant can apply for a sum of money and the decision as to whether the application is successful or not will come from the same source. Direct payday lenders, given they make decisions internally will normally not charge a fee for the service they provide and instead allow consumers the ability to apply free of charge; regardless of the outcome.

As well as direct payday lenders there are also loan brokers who operate within the online market for borrowing money. Unlike direct payday lenders a loan broker will not offer the ability to borrow directly and instead will provide the service of finding and therefore suggesting a suitable lender. This means the broker does not actually provide a facility for borrowing and instead offers somewhat of a comparison to be considered by the applicant. In the case of loan brokers, given their service uses sources external to their business, there is often a fee for the service offered. This means when applying through a loan broker, instead of direct payday lenders, the applicant may have to pay a fee without a loan being granted. Depending on the needs of the individual it may be that this type of service is suitable but for those who are ultimately looking to keep the overall costs down, direct payday lenders are likely better suited.