Have a Bad Credit Record? Borrow Only from Direct Payday Lenders!

A bad credit record can turn out to be a curse for you, especially so if you are not so financially stable and are in the habit of borrowing loans regularly. In urgent financial troubles, cash is needed immediately, and when friends and family bring no solution, then your only option is getting a loan. But with a bad credit history, getting a loan becomes too difficult, with almost all the financial institutions rejecting you. At such moment, who can help you out? Payday loans.

Bad credit payday loans direct lenders only have been in the finance market for quite a few years now and have taste huge success due to their easy availability. True, they carry a high interest rate, but the help that they do in emergencies is more valuable. And one of the most important features of payday loans is that they provide loans even to those who have poor credit records. So now no more rejections.

But everything is not so positive, as there are always people in the market who want to earn money by using your bad credit record and poor financial situation to their advantage. Yes, the brokers and loan matching services and also the frauds and scamsters have evaded the market and are preying upon uneducated borrowers who are unaware of such activities.

Unfortunately, a large number of people who turn to payday loans are new to it and don’t have much knowledge about it. It can be pretty dangerous, because there are increased chances of getting cheated by frauds. The new borrowers mostly turn to payday loans because they have defaulted on previous loans and are not getting loan from any other credit source. When such people enter the market, they are new and vulnerable and easily fall into the traps of the brokers and frauds.

Brokers promise the new borrowers that they will help them secure a payday loan easily, and this is the promise which lures most of the borrowers towards the lying brokers. They seldom know that payday loans does not require them to have a good credit history, and they can avail the loans even without the brokers easily.

The brokers take up a lot of your time and money. Here’s why you should stay away from brokers-

·         Brokers work for many clients at a time, and thus you can never know when they will start on your application. This causes a lot of wastage of time. During this time, the brokers hope that you will go away to some other broker or lender and they will lose nothing. Nowadays, brokers charge a fix fee, whether you secure a loan or not, so there is always a profit to earn for them.

·         Brokers never reveal full information to you about the loan. If any of the terms or conditions of the loan agreement might cause the client to not take the loan, then such brokers will hide such conditions, even if it causes you troubles afterwards.

·         Brokers are not fully regulated and hence work on their own terms. To earn more money, they sell your information to loan matching agencies or other lenders, who then call you up again and again with loan offers. Also, this can land you up in scams and frauds.

·         Many notorious brokers have been reported by borrowers. The borrowers claimed that the brokers used their financial details to withdraw money from their bank accounts daily until the bank account had no more money left. This is a serious matter and can land you in serious troubles.

Hence you must always go to bad credit payday loans direct lenders only for all your financial needs and avoid the borrowers always. Also, guide any new borrowers and educate them about such malpractices running in the lending industry.

If you are applying for a payday loan online, make sure you know about the website you are searching. In many cases, the websites are not actual lenders, but are either loan matching or lead companies looking to earn commissions, or are frauds who want to get your debit card and bank account details through phishing and then want to take all your money. So you must be well aware of such websites. Before applying for a payday loan online at a lender’s website, make sure to research well about the lender and read customer reviews to make sure that you are on the right track.

Bad credit payday loans direct lenders only always are a better option than brokers. Here’s why-

·         Payday lenders are regulated by the FCA and thus have to follow a fixed set of rules strictly regarding lending practices and code of conduct with their borrowers. Thus, the lenders are always helpful towards the borrower right from the loan application process to the repayment date.

·         Lenders are bound to make all the terms of the loan contract clear to the borrower. The lender is not allowed to hide any terms, and if you find your lender doing such things, you can take strict actions against them.

·         Lenders always are clear about the interest rates and offer better charges. On the other hand, brokers always give you high interest rates to pocket the extra margin themselves, and thus you end up paying more.

·         Lenders provide their regular customers with exclusive offers. If you regularly borrow from a specific lender and repay all your payday loans on time, then the lender might lend you more amount next time with lower interest rates. Also, you might get special perks like a waiver on the fees, free rollovers, instalment options, etc.

·         In case you are not able to pay off the loan within the stipulated period, bad credit payday loans direct lenders only help you out with a new customized repayment plan.

Thus it is clear that borrowers are a big no-no and if you want to have a pleasant, safe, and relatively cheaper experience with borrowing payday loans, then always borrow payday loans only from direct lenders.