Beware of Brokers not Direct Payday Lenders

Brokers act as intermediaries in any transaction. In the case of payday loans, they act as a middleman between the payday loan lender and the borrower, and thus these brokers charge a fee for their services. This fee further increases the cost of loan thus adding to the worries of the borrower. These brokers take advantage of the lack of awareness and education in a normal man, they exploit the information gap between them and the general public them and for that they charge fee for getting something done which they could have easily gotten done themselves. Payday lenders not brokers are an ideal method to get your payday loan without paying the unnecessary broker fees.

The question is how could we avoid this broker fee? We need to get educated about the loan and the requirements and also about the lenders, we need to look into the websites and do a research on the payday loan lenders before applying for a loan for that we could intelligently use websites and get in touch directly with the lenders to avoid broker’s fee. But how could we check if the advert or the website that we are looking at or going to apply to is a direct lender or is it a broker? What we could do is to see that how long they say would the transaction take and what is their process, direct lenders take less time and do not forward our details to anyone. Thus to avoid the broker fee it is best to deal directly with the lender and not through brokers. The research that we would be doing would help us here in locating the direct lenders from the brokers. Thus one thing that we should keep in mind is that we need to look for direct lenders not brokers as brokers charge heavy fee and make our loans even more expensive.

Brokers came in with the introduction of payday loans with a guarantor. These loans were introduced around six years ago in the UK, the objective of such loans is to lower the Annual Percentage rate of interest (APR) on the payday loan, the concept of a guarantor payday loan came in, it is a concept same as a guarantor loan where the guarantor promises to pay if the borrower is unable to pay back, with this introduction of the guarantor, it has made it easier for people with low incomes and poor credit history to get the loan, whose loan would otherwise be rejected. With the guarantor coming in it has become much more probable to get the loan.

This is where the role of brokers comes in, they ensure you payday loans without a guarantor and thus they charge a broker’s fee for it, as they provide the service for you. Therefore to avoid such a fee you should directly contact the lender company and check if any other cost free alternatives available. The only solution to avoid broker’s fee is not to go them, otherwise they will charge and you will end up paying a huge amount just as fee which you could easily avoid.

Topic : Personal Loan
Genre : Finance

Payday Loans - When to use them

payday loans in the UK

Payday loans are probably the fastest and most convenient method of getting money when an emergency comes up. To take a quick step back Payday loans are unsecured loans and are generally used by people when an extreme emergency comes up and they have nowhere else to turn to. This is a changing trend in the UK as PwC found (Payday Loans usage could exceed that of Credit Cards). The loan is a short term one linked directly to your payday so you repay it when you next get paid. Another interesting fact about the payday loans is that you can get them even if you don’t have a perfect credit rating, so long as your wages and out goings show you can afford it you can be approved for one. Moreover, your credit rating remains unaffected when you take these loans and all you need to opt for this loan is a running checking account and a regular job.

The procedure for getting these loans is quite simple and there is minimum paper work involved and you will have access to the cash at the earliest around 15 minutes, but more usually 1 or 2 hours. You will be required to supply them with some basic information online, you just need to sit back and wait for the money to arrive. Compared to other loans, this one is the easiest to get your hands on and the procedure is quite straight forward and fast. Now that you know the advantage and uses of these loans, you might want to consider researching on which of the payday loan lenders have the best customer rating in providing these loans. You might want to do your research at the earliest and keep them well accounted so that you can make use of them immediately when you have a requirement to be fulfilled. The ease of getting these loans does not make them a substitute for long term financial planning and this is something one should opt for only in urgent emergencies when there are no other options.

fastcash.jpg

Use them when you find yourself in urgent need of money or when you miss out an important payment that could have a direct impact on your life. Save these loans for the very rare occasions and do not misuse it as you will be putting yourself in trouble if you do so. The pay saver payday loans have quite a reputation now and they are said to make internet lending easy for every customers. They also offer payday loans, cash advance loans and fast cash services for any purpose you have for them.

Originally these forms of short term lending were created to assist people in real need of fast cash. Allowing people to complete their loan applications from start to finish online only increased the already highly available loans and as a result they have gone from strength to strength. So while the use of credit cards has dropped in the UK so the use of payday loans has increased drastically.

Topic : Personal Loan
Genre : Finance

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Author:Payday Lenders
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