It is always wiser to deal with direct payday lenders. You can stay away from the middlemen or brokers, you would get to speak directly with loan officers and you would not have the risk of being mislead or misinformed. When you deal with aggregator sites or too many third party enterprises, you are bound to get confused and mislead to an extent. Keep things simple and deal with direct payday lenders.
Since there are many direct payday lenders and you must always consider more than one before choosing a particular loan, you must compare the propositions. You can use many parameters to assess the pros and cons of all the direct payday lenders that would be suitable for your loan. Here is a brief list of those parameters that can help you with your assessment.
- Start with the loan amounts. Check what kind of amounts the direct payday lenders will approve. If you can satiate your need with the range of the loan amounts, then proceed to the next stage. Else, just ignore the particular lender. Also, bear in mind the risk of relying too much on the maximum loan amount that a lender will offer. If you need a thousand bucks and a lender has a maximum limit of a thousand bucks, then it is likely that the lender doesn’t usually offer a thousand bucks to its borrowers. A lender that sets a maximum limit of two thousand or three thousand will have more borrowers getting approved for a thousand bucks.
- The second stage is the obvious assessment of rates of interest. But you should not conduct a standalone assessment of the interest. You must factor in the processing fee and any other charges that the direct payday lenders would levy on you. It is quite possible that the rate of interest of one lender is more favorable but the loan fee or processing fee may nullify that benefit. It is possible that a lower rate of interest along with a high processing fee would cost you more than an apparently high rate of interest but no or very low processing fee.
- At the very outset, check out the repayment term. Many direct payday lenders would want you to repay the entire loan with the interest on your next payday. That may or may not be easy on you. If you need more time, then you should look for direct payday lenders that would allow you a repayment term of three months or more.