Should I Use Direct Payday Lenders Not Brokers?
We would always recommend those in need of cash to apply with direct payday lenders not brokers. Whilst they may hold a licence and there are some respectable companies out there, you are likely to run into problems with your average broker. The main issue at hand is that most of them feed your application through a pingtree service. This sends your lead on to multiple lenders at one time that can trigger multiple credit checks. Most firms attached to these panels are also the major players that you may have previously applied for such as PaydayUK or QuickQuid. Another issue often brought up in forums is email and SMS spam.
Whether or not you have been accepted, this spam can flow through for months on end and you will have to unsubscribe to each of them. If you do receive correspondence and go on to apply then just be wary that as well as a lender you may be connected to a broker that charges a one-off fee for their loan matching service. These fees are often hidden away and so you can often find yourself with money being taken from your bank account if you aren’t careful. If you are going to use a broker then you would be best advised to use one that uses SSL on their application forms.
It also helps when information is clearly presented surrounding their lending panel. The problem lies that many simply note the same sample interest rate, with similar rehashed content with the sole purpose of collecting your data as a lead. All of the discussed points highlights why it is important to use direct payday lenders not brokers, but it is important to add that you should be targeting companies that have favourable reviews and a good market reputation. Some of the lesser well known firms themselves often pass around your details to third parties and so you do have to be selective. Blindly seeking out a lender is not easy if are unfamiliar with the market.
A workaround this is to study comparison and review websites where you can learn about a company before making an application. Any such company is acting as an affiliate or a broker, but you miss out on the harsh pingtree concept as described above. They receive a commission from a successful lead, but there will be no difference to the cost should they connect you with a loan. Here at Lenders4U we have took the approach of introducing a mixture of leading and upcoming firms. We do not directly link to these companies though as our aim is to simply provide information that you can then use to make your own decisions.