Why You Might Consider Using Direct Payday Lenders Only
When choosing a payday loan there are many people that choose to use financial advisors, credit brokers such as Boutell to make the choice easier. However, there are many advantages of using direct payday lenders only and it is wise to understand why people might do that so that when looking for online loans, so you can decide whether you think this is the best way for you to go about things.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
- They have had a personal recommendation – It is very possible that a person may get a personal recommendation for a particular lender. They may ask people they know whether they could recommend one or may have just been told of a lender that others feel they should use. Personal recommendations are really good ways to find a good lender because the person has used them and knows what they are like from their own experience. They will then be able to tell you what they were like to deal with. If you find someone making a recommendation to you then make sure you find out why they are recommending them. Find out what they liked about the lender and whether they had everything that they were looking for. Try to find out if there was anything about them that they disliked as well. Then you will be able to decide whether you think that they will be suitable for you.
- They have used the lender before – If you have used a lender before then you will probably consider using them again if you had a good experience. This is not surprising and if they were a direct payday lender then you may only consider them. This may not be sensible, as there may be even better lenders available but it is a risk to try a different one as they could of course be worse. This can put some people in rather a dilemma but it is probably most common to stick with the lender that you know.
- They know the name – Sometimes we feel that we can trust a lender because we know the name. Many direct payday lenders will advertise perhaps on the television, online or in newspapers. This means that we get to know their name really well. When we know the name of a brand, we tend to think that they are better. Of course, by advertising, it does not mean that the brand is better at all, just that they can afford to pay for an advert. There might be lots of better companies out there that just do not have that sort of budget. Sometimes we may know a name but not remember why. There is a phrase ‘all publicity is good publicity’ which refers to the fact that even if we see bad things about a brand it will still benefit them. This is because it helps us to remember the name but we may not remember why. This may not always be the case as there are bound to be specific circumstances where you do not like certain brands because of bad things you have heard about them. However, there are probably names you know of, that you heard bad things about but you cannot remember the bad thing but only the name. So be cautious about selecting a lender just because you know the name.
- They might be cheaper – It is possible that direct payday loans only might be cheaper. This is because when a lender appears on a comparison website, it will pay commission to the website when it creates a lead that results in a sale. This means that they have expenses to pay to these websites. Those that only deal directly with customers, will not have that commission to pay and they should therefore be cheaper as a result. However, it is wise to make sure that you check this out, if cost is an important factor for you. This is because you might find that they will not be cheaper as they choose to spend the money they have saved on other things, perhaps such as advertising.
- It is easier than using comparison websites – If you go to a direct payday lender then you will just find them and use them. However, if you decide to compare the lenders it will take time. You might use a comparison website, but it is wise to use several to get a more balanced view. It takes time to enter all of your details into these sites and then you have to trawl through the listing they provide you with and make choices. You may just think that it is easier to get in touch with just the one lender and not bother with comparing.
- It is quicker than doing research – It will take time to compare all of the different lenders and if you already know of a direct payday lender then you might just want to go with them. If you need money quickly, which is often the case if someone wants to borrow money online, then you may just not feel that you have the time to compare lots of lenders and see which will be the best one for you. You might feel that as a direct lender is likely to be cheaper, that you will go with them and just hope that you are making the right decision as you do not have the time to consider anything else.
There are disadvantages to going with direct payday lenders only, some of which have been hinted at above. These should be considered as well, so that you know that you are making the best decision when choosing a lender.
- They may not have good customer service – Customer service is something which is important to a lot of people. Many of us like to think that if we use a company that they will treat us well and if we need help they will provide it for us. We might want to be able to contact them in a certain way, perhaps over the telephone or by email and need to check that this will be available from the lender that we choose.
- They may not be highly rated – It is possible that, like any lender, a direct payday lender might not be highly rated. We might prefer to go with a lender that is seen as really good and highly rated by other customers. For some people, recommendations like this are really important and they want to be sure that other people like a lender before they decide to use them. They might want to ask people the know but many will look online at places that rate, rank and review to get an idea of which lenders might be the best ones for them.
- They may not be flexible – For some borrowers flexibility is really important. They might want assurance that if they struggle with some repayments, that they will be able to change the amount they repay and not be unduly punished in fees. Borrowers will normally expect to be charged extra if they miss a repayment, but there will be a difference in how much they are charged for this as well as some lenders being more understanding about it than others.
- They may not offer good value for money – We all will have different ideas on what we feel would make a lender offer good value for money. The phrase is often mistaken to mean that they are cheap, but it actually means that the customer feels that what they are getting is worth what they are paying. It might be that some will be happy to pay more for a lender because they provide something that others do not – perhaps such as very quick loan approval or lending high amounts of money.
- They may not have repayment terms that suit you – It is so important to make sure that repayment terms work for you. You need to be confident that you will be able to repay the money that is leant to you. This may mean that you will need to pay small instalments over a long period of time and so you will need to find a lender that will allow you to be able to do that.
It is wise to not restrict your options too much by deciding that you will only go for one type of lender such as direct payday lenders only who only offer small loans for bad credit. You need to think about what you need from a lender and make sure that you find a lender that matches that. It may not be possible for a lender to fulfil all of your requirements but they could come pretty close. It can be wise to prioritise your requirements and match those that are most important to you first. You should then be able to get a close match and make sure that your greatest needs are met. These are most likely to be things like low cost, manageable repayments and can provide the money you need.