Direct Payday Lenders Expect

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Direct Payday Lenders and What to Expect
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What are Direct Payday Lenders The market for
borrowing a small amount of money is made up of
several different types of loans and also several
different type of lenders. This market has
continued to grow in the years in has been in
operation, with millions of users turning to the
resources offered ever year. The market in its
original form was a lot more restricted then is
the case found today but at the time, the
resource fitted the purpose. Short term loans,
payday loans or online loans all offer a resource
which allows consumers to borrow an agreed small
amount of money for a short period of time.
Before this market existed online, consumers were
traditionally used to conducting their borrowing
needs through more classic means, such as a bank
loan or credit card provided. The last decade saw
this change when the online short term loan
became available. Like so many sectors in our
economy, the ability to borrow in this manner
helped support the evolving needs of the modern
day consumer. Increasingly the internet has
become one of our most powerful and much needed
resources and the adaption to borrowing via this
medium is really no surprise.
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As touched upon above there are several different
forms in which a short term loan will be
delivered. In the early days direct payday
lenders dominated the market. Direct payday
lenders are firms who consider applications on a
direct basis, meaning the decision as to whether
a loan is possible or not comes from the company
in which the application has been made. These
type of lenders remain the most popular choice
with consumers for a number of reasons. Firstly
direct payday lenders typically offer a much
clearer level of service. Given that an internal
team reviews the applicants details and makes a
decision, the ability to approve the loan comes
in a timely manner and without need for further
information to be supplied by the customer. Also
these lenders do not typically charge a fee for
the service of applying ensuring the overall cost
of credit is not increased.
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Unlike direct payday lenders there are brokers
who exist within the market for short term loans.
A broker offers a similar level of service in the
respect that they allow consumers to apply for a
short term borrowing resource, however they do so
on the behalf of a group of lenders. This in
simple terms means a broker will not lend funds
directly and instead will use the information
provided as part of the application to deem if
they have a potentially suitable lender
available. The drawbacks with these brokers and
how they vary from direct payday lenders is in
the respect that the proposed lender may still
then decline the application. Equally given that
the broker is providing a service, there is often
a fee for doing so. Obviously this means the
total cost of the loan, should it be approved, is
likely to increase when compared to those offered
by direct payday lenders.
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