If you've ever heard that only direct lenders only accept people looking for payday loans with perfect credit, an active bank account and a fax machine, this isn't true at all. In fact, if you perform the necessary steps outlined in this short article, you'll discover that most online lenders actually do accept virtually everyone. Even someone who has bad credit will be able to secure a short-term loan from a reputable online lender, as long as they're prepared to negotiate their terms.
There are two types of lenders out there today: direct lenders and online lenders. The difference between them is fairly obvious. A direct lender requires you to fill out a short application, gives you the run around for several days, and then after you've been approved, sends your money in the mail. The good news is that most online lenders don't do this at all. When you shop for payday loans online, you never even have to meet with a lender, and you don't have to fax over any of your financial information.
So which one should you choose between direct lenders and online loan providers? To answer this question, consider whether you need a lender or not. Some people have several different financial institutions, with their own credit scores, bank accounts and social security numbers. While these people may not need a lender, most people do.
When you shop for payday loan no brokers, your financial institution or your family friends are probably the only direct lenders that you would contact. Most people have a savings account, usually tied up with a credit card, and thus most people would qualify for a short term, high interest loan through a financial institution (such as a bank). If you don't, or have no savings account, or poor credit, you can usually get a payday loan from a non-bank lender.
You might be able to borrow more, but even this may be an issue. If you have poor credit and are looking for car loans at attractive rates, your only option may be a bank account. Online lenders rarely make you pay fees for accessing your account, since it's a service that they provide for free. However, they charge for using the Internet to apply for payday loans.
If you have poor credit, but a good job, you might want to consider applying for no-fee car loans from direct lenders and online car loan companies. Although you can borrow a larger amount of money, the fees are likely to be much higher than for a bank account. When comparing no-fee car loans from direct lenders and online companies, it's a good idea to do some basic research. Compare the APR and fees for the different programs. Make sure you're getting enough credit to pay the loan off in full. Finally, check out the reputation of the company.
Many direct lenders and online loan providers require a small fee for accessing a savings account. If you don't already have one, you'll probably need to open one before applying for a direct lender payday loans program. Direct lenders won't give you a good deal, unless you agree to this fee. Some might even charge extra fees for cash advances on your credit check and for applying for additional no-fee financing through the same lender if you already have a savings account. If you can't find a good no-charge savings account, you could try opening one with another financial institution.
For people who don't meet the credit requirements for standard no-credit or no-fee lending, direct lenders offer what is called a "rescission clause." The rescission clause states that if your application is rejected for any reason by the lender, you can get a refund back just for returning the application and paying the requested money. So if your credit score is too low and you're still willing to sign up for a payday loan, be sure to read the rescission clause carefully. Most importantly, know exactly what it means. If you don't understand what it means, contact the lender before you sign on the dotted line. A legitimate lender will have no problem explaining the meaning of the rescission clause.
