Payday loans work quite a bit different from your traditional loans, and in more than one way too. Of course, you would expect that, otherwise, what would be the point of them?
From where you’re getting them from, to how much you’re getting, how it’s repaid, and so on, it all differs from what you may be used to with traditional banks. This isn’t a bad thing, though. It means that payday loans can fill a more specific niche in your financial life, as opposed to offering just another solution for an already covered problem.
Specifically, in this case, that problem is short-term emergency cash. You see, banks don’t really loan people short amounts of cash for short amounts of time. Oftentimes, the lowest loan you can get from a bank is in the four digits, and you have to pay it back over a few months. If you’re just looking to pay for a new tire on the car, this is no good for you at all.
That’s where payday loan direct lenders come in. With these guys, you don’t have all those nasty restrictions we just mentioned, and the process for getting the loan is so much simpler. All it is, is you needing some money, asking for some money, and getting some money. You do have to pay it back, of course, but the point still stands.
How it works is you find what is called an online payday loan direct lender. There are dozens of direct lenders out there, and each has its own policies and quotes, so you might have to shop around a bit before you find one that you like (we can help you with that). Once you do, you fill in the application form, telling them some basics like your name and address, your checking account number, some employment information, and so on. Essentially, all of the basic stuff you would expect to be asked when applying for a loan.
It’s worth just pointing out that direct lenders offer payday loans for bad credit, too.
Do Payday Loan Direct Lenders Have Instant Approval?
Great question. Oh, what a wonderful world it would be for the entire process to be automated, unfortunately, that’s only a fantasy, and it’s only in that fantasy where instant approval or denial would be possible.
No, your application does still need to be thrown across someone’s desk. However, the good news is that while it may not be instant approval, it comes pretty damn close, with most payday loan direct lenders boasting a response time of mere minutes. So if you’re anxious to see your results, go downstairs and have a cup of tea, by the time you’re done chances are you’re going to be a few hundred dollars richer. You’re not going to get that kind of speed from a bank!
Online Payday Loan Direct Lenders for Bad Credit
If it’s only a difference of a few minutes, why not automate the whole process, you might be asking. Well, it all comes down to that credit score of yours.
You’ve probably heard of a credit score before, but for those unfamiliar, a credit score is a three-digit number attached to you that allows potential lenders to see how good you are at paying debt without any need for in-depth digging.
The number is generated by a broker by putting your credit report through an algorithm. Your credit report is a document detailing your loans and repayments, and all your other financial information belonging to that ballpark.
What has that got to do with payday lenders? Quite a lot, actually. Firstly, payday loan direct lenders pride themselves on offering loans to those with bad credit scores. You see, a bad score means that a bank isn’t going to touch you with a ten-foot pole, you don’t get that kind of stigma with payday loans.
Secondly, that doesn’t mean that a direct lender isn’t going to check your score at all. That’s the whole reason that the process isn’t automated, to begin with. Now, if you have a bad score, you are still viable for many payday loans. Direct lenders are very forgiving in this regard. However, if you have an absolutely awful score, you may very well be turned down. Nobody lends out money to lose it, after all.
That means that there is no way to get a guaranteed loan from a payday loan direct lender; however, there is a way to maximize your chances while saving you a boatload of time, but to understand that you need to understand the advantages and disadvantages to direct lenders.
Are there Guaranteed Payday Loan Direct Lenders?
With the application process for a payday loan, while sure it may be fast and easy, it isn’t THAT fast. You still need to fill out paperwork, meticulously making sure that you don’t fill in anything wrong. On top of that, if you get denied, then you have to do it all again with another lender. This might not seem like too big a problem at first, sure second or third times the charm, right? Well, if you’ve been turned down from one online payday loan direct lender, you’re likely to be turned down from the others.
Why would you be turned down? Your credit score. Now, earlier we mentioned that payday loans cater to those who have poor credit scores, and that is still true, but there is a certain point where only a select few lenders are going to accept you, and finding those lenders can be very time-consuming.
So what’s the solution? Well, for those of you out there with bad credit scores, or those who simply don’t want to put in the time and effort to window shop direct lenders, we have a solution.
On our site (the same one you’re reading this on), you can find a standard loan application form that is going to do all the hard work for you. How it works is you fill in the form like you would any other, and from there we scour our database of dozens of online lenders to find one that works best for you, then you take the lead with the peace of mind that you have essentially been pre-approved for the loan. Do you want to know the best part of all this? It’s completely free. Meaning it costs you nothing, and you save all kinds of time and effort.
Second Chance Payday Loan Direct Lenders
Direct lender payday loans work great as second chance loans. For those unfamiliar with the term, a second chance loan is a type of loan designed to get everybody the opportunity to get it. Especially if you have a poor credit score, or you’ve been denied a loan in the past.
These types of loans offer people an option to try and get through tough times, especially if they have a shaky financial history.
Second chance payday loans work great in this regard. There are a few reasons, but one of the big ones is again the fact that you are dealing with a relatively small amount of money. With a few hundred dollars, the risk for the lender is significantly smaller than if the amount is measured in the thousands, meaning a lender is more likely to take a risk on you.
So if you’re struggling to get a loan because of a bad credit score, or if you’ve been turned down for loans in the past and your confidence is shaken, consider getting a payday loan to get yourself back on track.
If you’re wondering how you pay it back, the hint is in the name. The loan is paid back out of your next paycheque. In fact, the loan is actually taken out against your paycheque, so you’re essentially using it as collateral. So if you have a chunky one coming, or you get paid monthly, you may be in with a better chance of being approved for a loan.
Can I Get A Payday Loan Online from A Direct Lender with No Credit Check?
Wanting to get a no-credit check payday loan from a direct lender seems to be a question at the front of everybody’s mind. Unfortunately, most lenders do perform soft checks on you, but that shouldn’t stop you from applying, as direct lenders can be more forgiving with your credit score.
Realistically, an online payday loan from a direct lender with no credit check is the dream scenario, but it’s unlikely that you’re going to be able to find a lender that fills those criteria. Same thing with a payday lender that has no teletrack, but like we said that shouldn’t stop you from applying.
Should I get a Payday Loan from a Direct Lender Only?
There is a misconception about applying for loans through matching services versus applying to lenders directly. As we said above, it doesn’t cost you a dime; all it does is save you time. That’s all there is to it. There are no sneaky hidden costs or terms and conditions or anything like that.
You might be wondering how matching services make money then, well the money actually comes from its partners. Yes, payday loan direct lenders pay matching sites to make it easier for you to find them. So there is literally no downside to using them. We match you with one of the dozens of direct lenders, and while we can’t guarantee you’re going to get a loan, your chances of getting one with us are way higher than if you went knocking on each direct lender’s door. So don’t let a bad credit score turn you away from applying!