There are numerous reasons why you should always work with direct payday lenders only. First of all, you should know that the interest rates associated with the payday loans can easily surpass thirty percent, meaning that you will need to pay over thirty dollars for each one hundred dollars you borrowed. The cash advance loans enter the category of unsecured loans and hence, you will not be asked to provide collateral or justify what you need the money for. In addition, you will get the fast cash almost instantly transferred into your bank account. Considering the above, the price of the interest rate is explicable.
On the other hand, if you would work with direct payday lenders, that over thirty percent interest rate will go down as low as twenty and even fifteen percent. Consequently, you will be saving a lot of money, especially if you borrow a sum as high as fifteen hundred dollars. The trick is that, since these payday lenders lend you their money and there are no intermediaries or other companies to pay fees to when handling the transactions, they can afford to lower the prices of the loans.
Since there are less individuals handling a simple transaction, such as an online payday loan, it is only normal that you will have less waiting time before the direct lenders give you an answer of whether you have been approved or not. At the same time, it is important to note that fewer people and companies will have access to your personal and financial information. Therefore, you will not need to worry about the security issues associated with providing someone with your critical data, as the information will be restricted to the lender and kept confidential. However, make sure that you will be working with a reliable company or lender that can guarantee they will not sell your information to other individuals and companies.
While most banks and money agencies, especially the brick and walls ones will not work during weekends and holidays, you should know that you will not encounter the same issues when it comes to doing business with a direct payday lender. If you happen to have an online bank account, you can be sure that you are safe from any type of emergency regardless of when it occurs. What this means is that when disaster strikes, you will have instant access to the money you need as soon as the lender has approved your loan.
The disadvantage of working with payday lenders is that they usually have very high penalty fees in case you are late with your payment. In addition, a fail to make the payment on the payday loan you borrowed can have a negative effect on your credit history. However, this can be avoided if you read the contract and its clauses carefully. All in all, this is applicable for all payday lenders only, so you cannot really say that this is a downside of working with direct payday loan lender.
Another problem with the direct payday loan lenders is the fact that their loan offers are usually very limited, if you were to compare them to brokers for instance. On the other hand, if you are interested in a payday loan only, this is not really a big issue. The only moment when the limited offer can arise some problems is when you are looking for a home or auto loan, as then there are more factors that come into play and you might need a loan that suits your financial needs. As always, you will need to shop around in order to find the lender that can offer you the loan that you need.