Direct Lenders

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Direct Lenders

There are a number of difficult situations we go through in our lives and a source which can give us immediate cash when we need it can be termed by some as the answer to all our problems. There are many people who are hesitant in applying for loans, as their credit score is not up to the mark. This is where payday loan direct lenders have benefitted the public.  

The direct lenders pay day loans are generally an option to consider. However, before you apply you should check all the details about teh loan and its repayments. Not checking their interest rates before opting for such an option is not a wise thing to do.         

How do direct lenders work?

A direct lender, as the name implies does the job of lending directly to a customer without the need for a middleman or a broker. This means you dealing directly with the source of the funds. The direct lenders usually provide you with various loan options and the entire paperwork is taken care of by the direct lender responsible. 

Let us look at some of the advantages and disadvantages of working with a direct lender.

Advantages of direct lenders:

  • You have the chance to research the market to find the best lender.
  • Direct and transparent communication with the source of funds, which ensures credibility.
  • You data is only shared with one party, not offered to many to see who will lend.
  • No risk of being charged a broker fee.

 

Disadvantages of direct lenders:

  • You have to spend the time locating the various lenders eitehr on line or on the highstreet.
  • If you are declined you then have to fill in all your details again and again on numerous application forms until you are accepted.

 

How do you qualify for a direct lender pay day loan?

There are several parameters which are checked by responsible direct lenders, even if they claim to lend to those with poor credit history, they will always have their limits on 'poor' so will still check your credit history and apply their criteria to it. These parameters are an essential procedure which will be explained:

  • If you are approaching online direct lenders, the first thing is you need to be a permenent resident of the UK.
  • A responsible lender will ensure you have a steady source of income which can easily finance the payment of the loan along with enough to protect other expenses.
  • When a lender is offering you money, he usually asks for your pay slip to check if your pay is what you say it is. Some lenders may do this electronically so may not ask for this.
  • You must have abank account belonging to you. The lender will want to validate this.
  • Direct Lenders check if you are willing AND able to repay the loan. They will use all of the information provided to assess this.

 

Overall View:

Direct lenders are known charge high rates of interest to the customer. Do a thorough research of the kind of lenders you are approaching. It is important to consider this option only at the time of an emergency and not treat this as an additional source of income.