Skip to main content

A broker essentially acts as a middleman to find you a direct lender, as they work with a panel of lenders and will match you with the most suitable one. When using a broker, if your application is denied, they will suggest a different lender as they work with many payday loan providers. 

There are over 23,000 payday loans providers in the US, so don’t panic if your first application is not approved. 



A broker will help you find a contract with suitable terms.


Key Points: 


  • A direct lender provides borrowers with loans themselves, rather than using a broker as a middleman.
  • 12 million Americans use payday loans each year. 
  • Some lenders have self-imposed rules, such as only allowing borrowers to take out one loan at a time. 
  • Different lenders will offer different interest rates and have different limits on how much you can borrow. 
  • Failing to repay your loan can result in late fees and can even incite threatened legal action. 


Why Use A Broker?


The main benefit is that they work with a panel of lenders, and will assess your application to match you with the best one for you. They know which lenders are more favorable to those who have a weaker credit score, and those who are most flexible with arrangements to pay. 

A broker will always strive to make your loan as affordable as possible, and removes a lot of the thinking, shopping around and searching time and stress for you. 

If you use a regulated broker, then they will ensure that the lender you use is legitimate and trustworthy. This helps you avoid payday loan scams and lenders who prey on borrowers in their hour of need. 



Are All Direct Lenders The Same?


No, different lenders have different terms, regulations and the information you are required to provide when applying for a payday loan may differ. 

Some lenders will have higher interest on loans than others, some will offer longer term repayment terms than others, and some will only offer very small loan amounts. 

A number of creditors will need you to prove you have a minimum monthly income of $800 or $500, some won’t have an income requirement at all. 

Some lenders will offer you a loan based off of your credit history after reviewing it, while some will offer a no credit check loan and will offer you a loan without knowing your past behavior. 

Using a broker allows you to sift through this plethora of providers and find the best match. 


Should I Talk To My Lender If I Can’t Pay Off My Loan?


Yes, your lender is entitled to know – it’s their money after all. Many lenders will be willing to help you out, allowing you to create an arrangement to pay, which is a new repayment plan. For you, it usually gives you more time to pay off your debt. For your lender, they get their money back! If you find yourself unable to repay, you should contact your lender and discuss an alternative repayment plan. 


What If I Default On Repayments?


Try not to end up in this situation to begin with. If you fail to repay your loan it can make it costly. You could have to pay late fees, increased interest on your already pricey loan, and your credit score may fall.

This should be avoided at all costs as many lenders check your credit score when approving loans, failing to repay your debts could damage your credit score, excluding you from getting loans easily in the future. 

In extreme situations, you may be faced with legal action, and could end up in court. Most lenders won’t want to do this, and would rather settle the dispute privately than spending time and money on legal support. If they do press legal action, then be sure to turn up to your court date. If you don’t, they may automatically win. 


state regulation on loans

You could be faced with legal action if you fail to repay your loan, but this is rare.


Am I Eligible For A Payday Loan?


Direct lenders will have varying eligibility requirements, and you should contact them or refer to their website to understand what these are. 

However, many lenders, and loans brokers like ourselves, offer very simply eligibility  requirements:

  • Be at least 18 years of age
  • Be an American citizen
  • Have a minimum monthly income of $800 (sometimes $500, lender dependent)
  • Have a current account for us to deposit your loan into