When you are seeking a payday loan you will generally come across two main options. First is a payday loan lender and the second one is a payday loan broker.
A broker basically is a person or a service that has a relationship with several other providers.
In case of a payday loan broker, they will have access to various loan providers who they can put you in contact with.
- A loan provider is just another financial institution that will lend you the money
- A broker is never going to loan you anything
The purpose of the broker is twofold:
To aid find the best possible deal that could help you save both time and money. relaxcash.co.uk are payday brokers not lenders
To offer valuable services to the lenders by introducing to them the kind of customers they would want to work with.
Is Payday Loan Broker Much More Expensive?
You need to know this fact that a good broker is never going to charge you with any fees. Most of the brokers have commercial ties with the loan providers that pay them their commissions. In most of the cases, brokers can help you get more attractive deals.
Payday loan lenders should be transparent with their APR, charges and fees. It would be tough for a broker to be more expensive unless they charge you with an upfront for their services. Generally, payday loan lenders do not prefer working with fee charging brokers as it is considered to be a bad practice.
If you are search for a good broker to help you find the best loan for your circumstances, it is recommended that you closely check out the terms and conditions. Ensure you are not charged with any additional fees that could be increasing your cost of borrowing. The need to be clear on every single aspect will certainly help you with your peace of mind.
Benefits of Having A Payday Loan Broker
There are several benefits of having a broker and one of the most valuable one is the saving of your precious time.
Every lender has their own set of lending criteria. Their consent to approve the loan will change based on their credit policies.
A crucial aspect of the approval procedure is performing a credit check. The lenders will checkout your credit record and use this piece of information to help them make a decision.
Having a credit check can have a great impact on your credit record. You perhaps find that having the credit check may prevent you from being accepted by some other lender.
It is therefore vital that you give yourself the best possible chance of first-time success.
Why Go To Direct Payday Loan Lenders?
Generally people have this fear in their mind regarding brokers. They want to ensure that they are in reputable hands and that they do not have to pay any fees to apply. A mainstream payday lender might perhaps provide them with an opportunity to discuss their current situation.
As most of the applications are now made available online, you may find that speaking to someone could mean waiting for some time. Unfortunately, the likely outcome is that you would require making an official application to be at a decision.
Disadvantages of Payday Loan Brokers
- The biggest disadvantage of being a payday loan broker is that they do not lend the money themselves.
- The ultimate decision to approve the loan is not in their hands.
Disadvantages of Direct Payday Loan lenders
- This means that you are not being able to find the best deal for yourself. The terms and conditions may vary with every lender.
- Short-term and payday loans carry a higher APR over shorter time spans.
Aspects To Consider
When you are looking for payday loans, you will be signing an agreement with the lender, and not the broker. If you are comfortable with the financial jargons, you can always do research on your own, and you will certainly find many payday lenders operating in your locality. Ensure you take time out to properly assess their terms and offerings to make sure you opt for the best payday loan ender for your requirements. In case, you do not have enough time to conduct a thorough research, an FCA approved payday loan broker can certainly help you reach that crucial decision in minutes!