Payday Loans Direct Lender: What You Need to Know
Short term loans like payday loans have taken the UK by storm. Over the past decade or so, there are more UK lenders that offer them directly to interested borrowers. There was a time when quick loans are deemed as a last resort for those looking for financial lift during times of crisis. But payday loans have now become a vital part of the money lending industry while offering plenty of value to consumers.
Because of the high level of demand for payday loans in the UK, there is a surge in the number of payday loans direct lender in the region. These lenders offer a wide range of loan products and services to suit the unique needs of the borrowers. From quick loans to no guarantor loans, you can find a financial product that would suit all types of individuals and for every situation possible.
If you are among the consumers who find yourself short of cash, payday loans and other types of quick loans will give you plenty of options. You can also find payday loans direct lender that can approve applications in as little as 15 minutes! When you need to borrow money, you can get the funds you need when you need them.
As you explore this option, you will unravel plenty of benefits for choosing a direct lender. Since the UK money lending industry is becoming more competitive, borrowers are lured by lenders making favorable offers. When comparing lenders, always err on the side of caution. If it sounds too good to be true, then it probably is.
When you need money fast, your best bet is to find a direct lender who can provide financial resources. There are many of them that operate online these days, which adds to the convenience for those who would like to process this loan.
Check out the most frequently asked questions for those who are looking for direct lenders of payday loans.
FAQs on Payday Loans Direct Lender
- What is a payday loans direct lender?
- What are the advantages of a direct lender?
- Is a direct lender the best option?
- What makes payday loans direct lender different from the others?
- Is there a payday lender for people with bad credit?
- Do direct lenders perform a credit check?
- What are the qualities of the best payday loan direct lender?
- How do you guarantee a payday loan approval?
- What does it cost to get a payday loan?
- Do you have to repay a payday loan within a month?
- What documents are needed when applying for a payday loan?
- Are consumers protected from direct lenders?
- Can payday loans direct lender prohibit from lending?
- Are direct lenders regulated?
- How does a payday loans direct lender operate?
- How to use Money Pig to find direct lenders?
A payday loans direct lender is a lending company that is directly in charge of handling your loans application and the release of your funds. They are called direct lenders because they can deal with you directly without the need of a broker or any third-party companies. You won’t have to go through different channels and companies when processing your loan. The direct lender is the one that handles all aspects of the lending process. They are also the ones to handle the repayment of your loan.
This simplifies the process for the borrower. It also avoids confusion, especially in traditional methods of lending that require you to work with multiple entities. Working with just one company streamlines the process so you can get your money faster and pay it back faster, too.
One of the main reasons why borrowers opt to work directly with lenders is they want to avoid getting phone calls and other types of communication with other companies. Many of these companies you deal with will continue to hound you with offers and other services even when you no longer need to borrow money or have fully paid off your loan.
As mentioned above, the primary advantage of working with a direct lender is the simplicity of the process. You will only be working with one lender instead of several companies at once. From start to finish, you will be dealing with the same company. The confusion of working with multiple companies is only part of the challenge with traditional methods of lending. The most important thing to consider, though, is that you won’t have to worry about various companies having access to your personal and financial information. You can rest assured that the information you provide is only accessible to the direct lender.
When borrowing using traditional methods, you will find that you have to submit your personal information to one company. And then, you will be passed on to another who will review your application and determine if you are approved or not. Once you get the information on your approval, there will be a different company who will handle the release of funds and the repayment of your loan. Your personal and financial information is sensitive. So, if you are worried about how it is handled, working with a direct lender makes sense.
On top of the benefits mentioned above, one of the main motivations for borrowers to work with payday loans direct lender is the access to reduced rates. You can negotiate the best rates possible with the lender directly and also expect faster approval. The reason why you can get better rates with a direct lender is that no extra payments will have to be made to other companies that will be involved in the processing of your loan application.
It depends on your situation and preference. But generally speaking, the best option is to work with direct lenders. If you are short on cash, direct lenders would be a good first option. They can provide you with a wide range of loan options, some of which can be paid off in installments or using other flexible repayment schemes. The most common method of repayment is via direct debit but you can arrange other methods of repayment that is most convenient for you.
When you opt for a payday loan, you can also enjoy plenty of benefits that would make it your best option. You can remove middlemen fees that can add to the cost of your loan. Plus, you can get your approval in minutes or to an hour with direct lenders. By cutting off the other processes, everything about your loan can be completed within hours so you can get your cash in a day!
If you are in desperate need of cash, such as in emergency cases, then direct lenders would be your best option. The entire process is quicker and more efficient. You will also save time since you will be filling out fewer forms and there would be fewer people who can get access to your information. If all of this sound good to you, then payday loans direct lender is your best bet in times of financial crisis.
There are several types of short term loans in the market. These loans are essentially the same in terms of the amount of money you can borrow and the APR that comes with the loan. They only differ in terms of the repayment plan. Payday loans fall under the short term loan category. This loan is unique because it gives you access to a short amount of cash (usually no more than £2,000 but it will depend on your employment income) that must also be paid within a short amount of time (typically no more than 3 months).
Payday loans are different from other types of loans based on its repayment plan. The name is derived from the fact that you are vouching your paycheck as payment for the amount that you owe. In fact, there are some lenders who will require payment for the loan as soon as your next paycheck arrives.
Due to the ability to access funds in a short amount of time, such as within 24 hours, you can expect higher APR on payday loans. The interest rate is astronomically higher than loans with longer terms (such as a year to a few years). Thus, it is recommended that you only apply for payday loans when you are 100% sure that you can pay off that same amount in the agreed repayment period.
The design of payday loans is based on the emergency financial needs of borrowers. These financial emergencies happen without warning; hence, direct lenders of payday loans have developed a system that will allow them to deliver faster approval.
At Money Pig, we can help speed up this process even more. We can point you towards the top direct lenders of payday loans in the UK. When you are in need of cash, you can save yourself time from finding these top UK lenders because we can help you identify the right lender for your needs. Since we only work with certified lenders, you won’t have to worry about being exploited. We put emphasis on transparency and treating borrowers fairly. You can also expect the same with the lenders that we refer to you.
Yes, there is. Since the money lending industry has grown tremendously, there are specific loan types that are geared towards people with bad credit. Lenders understand that several factors can come into play that will impact an individual’s credit score negatively. They believe that it is not a direct indicator of an individual’s capacity to make payments or qualify for a loan.
With that said, there are a growing number of UK lenders that can provide loans for those with poor credit score. This will increase chances for those with less than stellar credit to apply for a short-term loan. While it does not guarantee that you will be approved, it can boost your rate of approval.
If you are worried about a credit check due to poor credit, this is one step that you cannot bypass. All payday loans direct lender in the UK are required and regulated. Therefore, they must perform credit check on all applications before it is approved.
Money Pig is also created for people with bad credit in mind. We can help you find the best UK lenders that would offer payday loans even with bad credit. You can rest assured that the lenders that we refer to you are authorized and won’t capitalize on your dire financial situation. Even with bad credit, you can still qualify for a loan with reasonable rates based on payday loans’ standards.
Yes. Direct lenders are required by law to perform a credit check on all types of loans, not just payday loans. This is something to consider when you are shopping around for payday loan lenders. Some lenders might entice borrowers with a guarantee that there will be no credit check on their loan application. But the reality is, every direct lender is required to perform one – at least for those who are certified and licensed.
With that in mind, no lender can guarantee approval for all loans. This should not be a reason to worry, though, especially if you have bad credit. The credit check performed in payday loans are not as extensive as traditional loans with longer terms.
It would be best if you can find lenders who specialize on those with bad credit, especially if you are worried about undergoing a credit check. Never ever fall prey to those lenders that make promises that are too good to be true. Reputable lenders should be upfront about their processes and that includes the credit check.
Finding the best payday loans direct lender is the ultimate goal for most consumers. But since the UK market is saturated with payday lenders, finding the best lender can be a difficult task. In the past, most borrowers would agree to the first lender that would approve their application. But this isn’t always the case as you can get a more favorable rate from some other lenders.
If you are looking to identify the best payday loan lender in the UK, the first thing to check is if they are certified. You want to be dealing only with lenders who are licensed to operate in the UK. This is how you can ensure that their policies are regulated and the rates they impose are fair.
It is also ideal to find a lender with flexible repayment schemes. Every financial situation that the consumer is in is unique. They should be able to offer flexible terms to suit your unique needs and financial crisis.
No direct lender can make any guarantees about the approval of your payday loan application. This is another tell-tale sign of illegal or illegitimate companies. Despite the prevalence of online lenders and payday lenders, there is no such thing as a guaranteed loan. All applications go through a credit check. If you encounter lenders who promise to conduct no credit check or guarantee loan approval, you need to steer clear of them.
No lender, not even direct lenders, can guarantee 100% approval. Instead, you need to focus your effort on finding lenders that best match your financial situation. By finding the right match, you will increase your likelihood of getting the loan you need.
One of the downsides to obtaining a payday loan is that you will have to pay for a higher interest rate. Since this loan is typically released within a few hours and must be paid off quickly, UK lenders attach interest rates that are higher than the average rate for most loans.
But do not be put off by the high APR, though. While the percentage is much higher, it is calculated for the entire year whereas the loan itself is paid off within a month. If you would like to know the exact rate you are charged for in a loan and the total amount of interest you’d have to pay, you can use an online loan calculator. Most online lenders in the UK offer this tool on their websites, so use them.
Finally, the amount of money you owe in a payday loan is considerably smaller than what you would borrow from other types of loans. Even when the APR is high, it is not as expensive as other loans are.
The traditional payday loans require you to pay off the loan within a month, or within a period of one pay cycle. But there are more options now than ever before. Some lenders in the UK allow borrowers to pay off their loans for up to 3 months.
To find the most convenient and affordable repayment scheme, you need to discuss your options with your payday lender beforehand. Make sure to shop around to get the most suitable repayment terms for your budget and requirements.
There are a number of documents that are needed when applying for payday loans. While the terms and interest rates vary from one lender to another, the documents required are pretty much the same for each.
The documents needed include personal identification, proof of income, and employment. A valid bank account must be presented, as well, prior to approval of the loan. This bank account is necessary for the deposit of the requested loan amount and for the repayment of the loan.
Yes. As mentioned above, there are state laws and regulations that impose caps on interest rate placed on payday loans. This is to ensure that lenders cannot exploit borrowers’ desperate need for cash and to ensure parity towards consumers.
If you are a borrower, it is important to choose payday loans direct lender that is licensed and certified. Otherwise, you will not be covered and protected by the law.
Direct lenders have the right to deny application from borrowers who fail to meet the minimum eligibility requirements. A credit check is mandatory for all payday loan applications. This is the stage wherein they will evaluate applications from interested borrowers.
Yes. Payday loan direct lenders must abide by state and federal laws regulating the money lending industry. When choosing a direct lender, make sure they are licensed to ensure they observe proper regulations and abide by fair lending practices. Always check if the lender is duly authorized to operate in the UK to ensure that you are protected.
Direct lenders offering payday loans operate in a straightforward manner. They will receive the application from interested borrowers and perform the credit check. Once the credit check is completed, they will assess if the borrower is qualified for the loan. If yes, the borrower will be given access to the funds requested at their preferred channels.
The two parties – borrower and lender – will agree on the repayment terms for the loan. At this point, the borrower will also provide information on how repayment is to be done – either via direct debit from their account or wire transfer (on an agreed date).
There are several options available when you are looking for payday loans direct lender. There are a few options for banks and other financial institutions that can provide you with a loan directly, or without having to go through a third-party. The only problem is that going through banks and large credit institutions will be difficult as they impose stringent rules on credit check.
With Money Pig, we enable you to find and compare direct lenders of payday loans with ease. You can use our services to access hundreds of payday lenders in the UK. You can save time in searching for top UK lenders so you can send your application in a swift manner and get approved just as quickly.