What is a Direct Payday Lender?

An online direct lender of payday loans is a business that directly lends money to an applicant. There is not a third party that negotiates for the borrower or connects the borrower to a lender.

Why are Direct Payday Loans Preferable?

It is better to borrow directly from a lender than to go through a third party for several reasons. Here are two important reasons surrounding security of your personal information:

• When you fill out an application on a direct payday lender’s website, you know that your information is going to that lender and you can read the lender’s privacy policy to understand how your personal information is used. If you fill out an application at a third-party website, your information could be sent to multiple lenders or another third-party website. How can you be sure that your information will remain secure?
• With a direct lender, you can find out if the lender is licensed and follows all state laws, so that you can be assured that you’re dealing with a legitimate company. When dealing with a third party, you don’t have control over which lender they choose for you. You could end up with an unlicensed lender that’s not even located within the U.S. If your private information is sent to one of these lenders, you could fall victim to identify theft, fraud or other scams.


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What About Other Loan Options?

You may have heard of some other loan options for borrowing money in an emergency. Here’s how these options compare to direct payday loans:

Bank Payday Loan – when a bank gives out an advance on your future paycheck. Obviously, this is not a common occurrence. There could possibly be lots of paperwork and lots of waiting around for your loan. A direct payday loan from an online lender would be speedier without a lot of hoop jumping.

Payroll Loans Direct – when an employer gives you an advance on your next paycheck. Depending on your employer, this may be an option, but it’s not typical within a corporate or large business environment. With a direct cash advance, you can get an advance on your next paycheck simply by filling out a five-minute application.

Related:

• Who are top rated payday lenders?
• Are there BBB reviewed payday lenders?
• Where can I get a fast cash payday loan?

Back to Everything You Need to Know About Payday Loans




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