Payday loans are a quick way to get cash when needed, especially in an emergency. Not only is it easy to get approved, this type of loan are also very easy to access. Chances are there are probably around twenty payday lending stores across a five-mile radius from your home. Better yet, you can even acquire a loan in the comfort of your living room through the internet. The question is, how do you start applying for a payday loan? Who do you contact first?
There are two ways that you can apply for a payday loan: directly from a payday lender or through a broker.
What exactly is a payday loan broker? A payday loan broker is a company who researches and has information about hundreds of payday lenders. A broker will be able to provide you with necessary information you need to compare different lenders and help choose the right one to apply for: the terms, the amount available for individual payday loans, required identification and whether you need a bank account.
A broker can also help you apply for a payday loan. First, they will ask you for personal information such as your social security number, contact information, and bank account information. Your broker will then contact payday lenders on your behalf until one of them approves your application. Technically, since the broker found the payday lender a customer, the broker will receive a commission. For this reason, brokers will usually sell your information to numerous lenders. It is then possible that more lenders will approve your loan than you asked for and money that you do not want will be automatically deposited in your bank account. When this happens, you cannot just return the money to the lender because now you also owe interest on that unwanted loan.
To avoid this, borrow money directly from a payday lender. The only advantage of going though a broker is that they do all the tedious work for you and will find you the lowest rates. However, this is something that you can do yourself, all you have to do is some research. Contact each payday lender you are considering to do business with and ask how much their interests are and go from there.
Remember, some things are too good to be true. Going through a broker is as easy as it gets but has dire consequences. When it comes to applying for a payday loan, borrowing from a payday lender directly is the best option.
