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A direct lender provides a consumer with a loan themselves, rather than using a third party broker. If this lender rejects your application, they won’t offer you an alternative loan. When using a broker, if your application is denied, they will suggest a different lender as they work with many loans providers. 

There are more than 23,000 payday loans providers in the US, so don’t panic if your first loan application is rejected


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. 


Are All Direct Lenders The Same?


No, different lenders will offer different terms and rules when providing loans. 

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

Direct lenders will also have varying eligibility criteria. While some lenders will require you to 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, while some will offer loans with no credit check

If you are using a loans broker, then they will be able to match you to the lender that offers the best terms for you. 


trust your lender

It’s important that you ensure the lender you borrow from is legitimate and trustworthy.


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


Yes! Your lender will most likely help you out. Many loans providers often adjust your repayment plan according to your circumstances. This is called an arrangement to pay and is in both of your interest.

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 Repayment?


You should do your best to avoid this reality. If you do default, it could lead to many negative consequences. 

In extreme situations, you may be threatened with legal action, and you could even be taken court by your payday loan company. Most lenders won’t want to do this, and would rather settle the dispute privately than spending time and money on legal support. Even so, this is a possibility, so you should ensure you meet your repayments. 

If you fail to repay your loan it can make it costly. You could be hit with late fees, higher interest on your 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, thus preventing yourself from securing credit in the future.


What’s The Benefit Of Using A Broker?


A loans broker is essentially a middleman who will connect you to a lender. 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. 

For example, if you have a weaker credit score, they will either connect you with a creditor who offers no-credit-check loans, or who is committed to helping borrowers like you with a bad credit loan. A broker will always strive to make your loan as affordable as possible for you.

In a nutshell, they do a lot of thinking and searching for you, which saves you time and mitigates stress during an already pressing time.  


broker with the best terms

A broker will help you find the best loan terms.


Am I Eligible For A Payday Loan?


Direct lenders will have varying eligibility requirements for payday loans, 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