A direct lender can process your loan application quickly. A broker takes your application and sells it to a lender. This extra step in the process takes more time and incurs a fee that can be avoided by going to a direct lender.
A broker must operate within the boundaries set by lenders. Since a broker does not actually have the funds to lend, they are limited in what they can offer a borrower. A direct lender has the funds to lend and the authority to evaluate a each borrowers application.
There are generally more brokers on line than direct lenders. You can borrow from a direct lender for short term loans the same as a broker handling a short term loan. A direct lender may be able to offer other types of loans such as auto loans as well.
Direct lenders make their own decisions on cash advance based on their own process and get the borrower an answer on their application immediately. Once a direct lender approves the borrower’s application, funds are deposited directly into the borrower’s bank account. With a direct lender the entire process can usually be completed within 24 hours. Payment terms are set before funding and are generally made within two to four weeks.
The requirements for a payday loan are the same with direct lenders as with brokers though are often processed faster with direct lenders. You will need an active bank account with a positive balance and income of approx. $1000.00 per month to be considered for a payday loan. Of course only adults can enter into a lending contract. Loan payment is drafted directly from the same bank account into which funds are deposited. Payment is drafted automatically on the due date set forth in the loan agreement before the loan is funded.
State laws regulate payday loans and can vary from state to state. Regulations determine how many loans a borrower can take at one time, how much time must be taken between loans and even how many loans can be taken without a break. There are regulations regarding early payment as well. These factors may affect your decision to take a payday loan and the terms you can comply with regarding payback. Finding a lender located in your state will help you keep in compliance with the laws.
Contact your lender immediately if you are unable to make your payment on the due date. Your lender can help you work out payment plans that allow you to slowly pay back your loan over additional loan periods. Your ability to repay your loan will affect your ability to get approval for future loans.
Payday loans usually range from $100.00 to $1500.00 per loan. Some direct lenders can offer installment loans or auto loans which are considerably higher. The amount of your loan is based on your income. Dealing with direct lenders is faster and simpler but you should compare the terms of several direct lenders before signing an agreement. Check references and read the FAQs for each lender you are considering. Be sure to get any and all your questions answered before you sign your loan agreement. Taking the time to research lenders will result in getting the best rates and terms available when getting your direct loan.
April 21st, 2011 at 9:38 pm
Interesting post!