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Direct Payday Advance Lenders Vs Indirect: Which is Better?

By David Kamau

Republish: EasyPublish™ Published: 22Nov2009 Word count: 443 Viewed: 313 time(s) Get Free Content For Your Site

A situation often comes when you need cash right away. It could be that you car has broken down, you need to pay a bill, that darned prescription co-pay, an anniversary gift for you wife or birthday gift for a loved. You have a stable job, a bank account but you have no cash.

Whether you have good credit or bad credit, a payday loan may be what you need. There are two basic types of this type of lender, direct and indirect. Direct payday advance lenders issue the loans directly to the consumer without a middleman or agent. Indirect lenders are middlemen who get paid by the direct lender for referring a customer.

Whatever you may have heard out there, there is nothing wrong with working with an indirect lender. In fact, it may be advantageous to you - as long as you are working with a reputable company - as the indirect lender works with several companies that compete for business.

Since you don't pay commission to the indirect lender (they get paid by the loan issuing company) the loan will not cost you any more or less than if you went to a direct lender.

Also, as lending criteria differs with company, you may find that one company's requirements are less stringent, or a certain company is offering a larger loan amount. You see, when it comes to payday loans, you don't decide how much you get. The company decides what to advance you and you may find the amount far short of what you really need.

Why can't you decide how much you get? After all, you will have to pay the money back with a hefty interest. Unfortunately, you are presumed high-risk when it comes to payday loans as there are no credit checks and no collateral is required.

Are there low-interest direct payday advance lenders out there? Unfortunately there is no such animal. If you will get a low-interest loan, you can expect a credit check and a lot of paperwork along with the usual time-consuming procedures.

In contrast to banks and credit unions small payday loans are offered with very minimal conditions. The main requirements are a job, bank account, address and proof of ID.

Finding a payday lender, whether direct or indirect is easy. The most convenient way is to research online. You should also apply to more than one in case what you are offered by one company falls too far short of your need. Also, make sure that the website or at least the application page is on a secure server. Secure servers have HTTPS (note the "S" at the end) web addresses.

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