What is a direct lender payday loan? A direct lender payday loan simply means you are getting a payday loan today directly from the lender, without any kind of middle man being involved. What does this mean to you? Hopefully, it means a better interest rate.
When you are dealing with a company that works with various payday loan companies, the rates may be a little higher as they are likely getting paid in some way from these payday companies, which likely means a higher interest rate for the customer. Whenever applying for a payday loan, try to deal with the lender directly, as this will likely save you money on the interest rate and fees.
The application process is a pretty simple one which normally only takes a nominal amount of time to complete. Most direct payday loan lenders don't require people to have A1 credit, because they are securing their loan with your checking or savings account information. They will usually require that your payment be directly credited from your account at the time it is due.
There are both online direct payday lenders as well as various companies that have local branches you can visit to obtain your payday loan. Many online lenders have a no faxing, no credit check policy which makes it fast and easy to get the loan you need without having to deal with a lot of paperwork. When you visit a payday loan branch office, you may need to provide more information, but it is still an easy process. They will likely want to see some form of ID along with a recent pay stub and will ask for a check which they will hold for repayment of your loan. You will then receive your loan and some of these companies will have cash on hand to give you, while others may have to issue a check you can cash at their local bank. When dealing with an online direct lender, they will deposit the funds directly into your checking or savings account.
Another good point about payday loans in general is that, unlike traditional lenders, there is usually only a $100 minimum loan. Most lending institutions won't lend anything less than $1000, so payday loans can be of help when $100 or a few hundred dollars will suffice for your needs.The proceeds from your payday loan can be used for whatever purpose you wish. You are not approved based on what the money is for, only on the promise that you will pay it back according to the terms of the loan. Paying the loan back in a timely fashion not only helps your credit, but also can save on what are called "rollover" fees. This simply means that if you have trouble paying back the entire loan when it comes due, you can pay a fee, usually between $15-$25, to keep the loan and pay it back at a later date. Again,dealing with a direct lender will usually result in lower fees than dealing with a company which only acts as a middle man.
Whether applying for your payday loan online or at a local branch, even when dealing with a direct lender, it is best to look around to get the best deal possible. There are many companies that now do these types of loans, so it only makes sense to find the best repayment plan possible before committing to a specific lender.