Although it may seem so on the surface; not all quick direct payday lenders are the same. Many use the terms “paycheck advance” or “quick loans” but without doing a little investigating first, you could end up paying more than you have to. Look beyond the phrase “paycheck advance loan” and discover what could save you a lot of money.
There are basically two types of quick loan lenders. One is direct payday lenders and the other type – loan brokers. Direct payday lenders are using their own money to loan out. The only costs they normally incur outside of the loan is for their website. Because they do not incur many expenses (overhead), they are able to charge less for fees on their loans. On the other hand, dealing with a loan broker is completely different. A loan broker acts as a go-between for the lender and the borrower. They often work on commission which means the lender is incurring many expenses outside of the loan. For this reason, there are often higher fees associated with these loans. This may not seem like much of a difference but it can directly affect the fees charged on payday loans. Using direct payday lenders can often save the borrower up to 10% of the cost of the loan.
It only takes a moment to check out the websites and so some comparison shopping. It can mean the difference between making a $40 interest payment or a $60 interest payment (and often, even more!) Only after the borrower has compared the fees and interest rates should the application be completed. This only takes a few moments and in most cases, the loan is approved and the money deposited in the account within a few short hours. It’s your money, so know where it is going.