The Benefits of Direct Payday Lenders

Within the online market for borrowing money there are several different types of lenders who operate. In this context we are talking about short term online loans which are also often referred to as either payday loans or instalment loans in more recent times. These loans and their lenders have actually been in operation for more years then generally we may think and have been a lending resource available to consumers now for over a decade. Throughout its time in operation this online market place has undergone a number of changes which means not only have the lenders evolved but so too has the type of product being offered. For many years a consumer looking to borrow in this way would have been offered a very similar and somewhat restricted product; regardless of the lender selected. Often the loan on offer was based on a understanding that if approved, the total amount borrowed and the charges of the lender would be repaid as a single one-off payment. Although these type of loans were clear and somewhat easy to access, over the years the requirements of consumers have changed and so too has the way in which lenders offer their customers repayment. As well as a change in terms of the product, recent years have shown that consumers are preferring a specific type of lender within this market and these are the direct payday lenders.

Benefits of Direct Payday Lenders

Direct payday lenders are the preferred choice amongst consumers because of the manner in which they deal with their applicants. Direct payday lenders will consider an application in its entirety and provide the customer with a decision directly, based on their own lending requirements. When applying with direct payday lenders customers will not be charged a fee simply for applying and this is regardless of the outcome of the application. This is because such lenders handle the application from start to finish ‘inhouse’ and therefore can make their decision without factoring in other lenders. The reason why this is of relevance is due to the fact the other type of lender who operates within this make place are the loan brokers. The loan brokers offer a service which is very similar to that of direct payday lenders but there is often a fee for the service. Brokers will attempt to locate a lender who they believe will be suitable for your requirements, based on the information you supply when completing an application. These applications are normally somewhat shorter because brokers do not need all the information to propose a lender and instead the suggested lender will then complete the remaining details as part of their process. A broker cannot guarantee the success of a loan application with their proposed lender but normally a fee will still be charged for their service. Depending on your individual requirements direct payday lenders or loan brokers may be able to assist. For those who do not want to pay a fee for simply applying for a loan, a loan broker will not be the most suitable choice.