Find Direct Payday Lenders with No Brokers or Hidden Fees
If you’ve recently run into a need to borrow money quickly, you’ve probably been considering the option of applying for a payday loan. These loans are particularly appealing to borrowers who have poor credit and, therefore, can’t be easily approved for other kinds of funding. While all payday loans come with higher-than-average annual percentage rates (APRs), they also offer a much higher approval rate.
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).
This sort of predatorial middle-man approach to payday loans has become so common that indirect payday lenders and brokers now account for almost as many loans issued as direct payday lenders. In this guide, we’ll teach you what to look for when you’re searching for direct payday lenders with no brokers involved:
Look for a Promise of Direct Lending On Their Website
Direct lenders know that they provide a valuable and sought-after service in a market that’s becoming saturated with third-party brokers. As such, most direct lenders will proudly state that they are the direct financiers of their loans. You shouldn’t have to search too long to find a statement like this on their home page or within the terms & conditions of the loan itself.
Conduct a Comparison to Avoid Being Overcharged
Now that we’ve covered a quick and easy method for narrowing down your options, it’s still wise to conduct a comparison within the group of direct payday lenders that you’re considering. Without comparing APRs, fees, and other terms, you’ll be walking into the decision blindly and possibly losing hundreds of pounds in interest and fees over the course of the loan repayment period.
Surprisingly, you may find that some direct lenders charge almost as much as third-party brokers, so there’s a cost spectrum that’s worthy of being explored even when you’re only considering direct loans.
Read the Terms & Conditions Before You Actually Apply
The most reliable way to know exactly what you’re getting into whenever you apply for any kind of loan is to actually read the terms & conditions. That might seem like a challenging extra step, but it’s one that could save you a significant amount of interest and hassle.
Also, you don’t need to read the entire Terms & Conditions page for every payday lender that you come across, only the one that you’re actually about to apply for a loan from, based on other more apparent factors. So, let’s say you’ve got your options narrowed down to two lenders, you’ll still want to skim through their T&C pages, particularly the parts related to fees, penalties, and interest rates before you make your selection.
Ask for an Exact Quote on What You’ll Be Expected to Pay Back After All Interest and Fees
A credible payday lender will be able to calculate the exact amount that you’ll be required to pay back with all applicable interest and fees factored in. That should be the bottom line that you’re looking for when receiving quotes.
While the amount that you actually wind up paying back could be more if you were to be late on your payments or extend the duration of the repayment period, you should be able to get some type of specification that states the exact amount you’ll be repaying under the condition you make repayments on time and in full every month.
This is the part where the comparison can become kind of tricky because there are plenty of dishonest third-party payday brokers who will give you a quoted amount but then add on all sorts of other expenses as the repayment period progresses.
By that point, you’ve already repaid so much of the loan back that it wouldn’t make sense to stop paying, so they use that leverage to adjust the amounts that you owe or tack on extra fees, knowing that you’re going to keep paying in order to finish paying off the debt.
What Do You Need to Be Approved for a Direct Payday Loan?
Your credit score will not be considered during the approval process, but you will need to show sufficient proof of income that has lasted for at least a few consecutive months. Here are some of the items you’ll want to have ready before submitting your application:
- Bank statements or Pay Slips That Show How Much and How Often You Get Paid – This is by far the most important item to have. The more provable your proof of income is, the more likely you are to be approved.
- Account & Sort Code Numbers for a Bank Account that Accepts Direct Deposit – Most direct payday lenders will also run a quick check using your banking details to verify that your account is open and in good standing. Make sure your account has a positive balance before applying.
- Government-Issued Form of Identification – You’ll also need to show that you are over the age of 18 by providing some form of government-issued identification such as a driving licence, passport or ID card.
Overall, if you’ve had a decent job for more than a couple of months and can prove it beyond a shadow of a doubt, you should have no problem getting legitimate direct payday lenders to approve your application within a matter of minutes.