Difference Between a Payday Loan Broker and Payday Loan Direct Lender
A payday loan broker is really a professional payday
lending referral service. They are not really brokers at all. This term
is misused by many people, including direct lenders.
What is the difference between a payday loan broker/referral service and payday loan direct lender?
A payday loan
referral service accepts applications for loans, collects required
personal information, and then presents this to their wide array of
lenders to find a loan for the person requesting it.
A direct lender is exactly what it sounds like. It is
a business or person that has funds and releases them directly to a
bank account upon loan approval. Not everyone who requests a loan will
receive one, no matter who they use for their loan request.
Is a payday loan referral service more expensive?
There is a myth that referral services charge for
what they do but this is not true. Referral services are paid by lenders
for marketing. The lender sets their own rates and terms, and each loan
requestor decides if the loan is right for themselves.
The cost of a loan to a consumer is no different from
a direct lender and a lender from a referral service. Of course, loan
fees vary based on a wide range of factors.
What are the benefits of a payday loan broker/referral service?
A referral service has several advantages, and the
biggest one is the much greater percentage of applicants who qualify and
receive a loan. In addition, most referral services are online which is
far more convenient for consumers. No one wants to drive around going
from store to store to find someone who will lend money to them. By
using a referral service, this is all done for you in a matter of
seconds. And, it can be done right from a smartphone.
What are the disadvantages of going directly to a direct lender?
The biggest disadvantage of a direct lender is they
are just one lender. Depending on your location and financial situation,
many lenders may or will not accept your application. Their lending
funds may be limited, their criteria may be very strict, and they
usually operate in one or a few states, sometimes just one city.
They reject far, far more loan applications than a
referral service. Direct lenders say you can check out their history
better, but this is not true with the internet. Every quality referral
service can be researched on the internet.
What makes CashinaSnap different from other referral services/brokers?
CashinaSnap is better than most referral services
because it has a large, proven group of lenders (over 100) and has 70%+
of applications accepted for a possible loan. CashinaSnap also has been
in business for many years and has a proven reputation for protecting
consumer data, following best practices of the OLA, and providing
consistent results for its consumers. This stable and successful history
separates CashinaSnap from many competitors who have come and gone.
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