In these hard times, it is absolutely necessary that we should be smart about our finances. We cannot afford to waste money and opportunities. With every deal that you will be making you should see to it that you get the best bargain that is available. Taking out a quick payday loan is no different. You have to be aware of the things that you need to look for in a legit cash advance lender.
Go for Direct Lenders Only
One of the first things that you should know when dealing with this kind of financial product is that when getting instant loans direct lenders should be your only option. You should never try to deal with other companies when it comes to instant loans. How can you be sure that you are dealing with a direct payday loan lender?
A Direct Short Term Loan Company
The first thing for you to learn is what a direct lender is and how it is different from other companies. The difference is not really that complicated. They lend the money to the borrowers, process the application and send out the money. This is in opposition with indirect lenders who simply take in the personal details of those who would like to borrow and then send it over to the direct lenders of instant loans. These indirect lenders act as brokers.
Disadvantages of Brokers
If you were unfortunate enough to use the services of an indirect company then you are likely to have suffered several drawbacks.
Since they will not be the ones to actually lend you the money, the processing time for the loan will be a bit longer. The difference might not be that big, but in certain situations it might cause enough trouble.
Transacting with a referral company would mean additional costs which are not necessary at all. You can deal with a direct company and forget about those additional expenses so why shoulder them?
Your personal information would be transferred from one company to another. That increases the chances of your personal information getting stolen and being used for some other purpose that might cause further trouble. In short it can be a reason for identity theft.
How to Identify a Legit Direct Company
Your problem now is how you can identify a company if it is a direct lender or not. Here are some tips that you can use.
The problem is that a referral company will not actually say that they will just be getting your information and then forwarding it to another company. They would never say that on their website. A direct payday loan lender on the other hand would be proud to say that they are a direct company and you could see that as a banner on their site.
Make sure that a company has been in business for several years. Only a legit company would be able to stay in operation for that long.
Check for complaints against a particular lender. If there are complaints against a company saying that it is not a direct lender than that should be a warning sign for you. Opt for instant loans from direct lenders only.
APR Disclosure Some states have laws limiting the Annual Percentage Rate (APR) that a lender can charge you. APRs for cash advance loans range from 200% and 1386%, and APRs for installment loans range from 6.63% to 225%. Loans from a state that has no limiting laws or loans from a bank not governed by state laws may have an even higher APR. The APR is the rate at which your loan accrues interest and is based upon the amount, cost and term of your loan, repayment amounts and timing of payments. Lenders are legally required to show you the APR and other terms of your loan before you execute a loan agreement. APR rates are subject to change.
Exclusions Residents of some states may not be eligible for some or all short-term, small-dollar loans. Residents of Arkansas, New York, Vermont and West Virginia are not eligible to use this website or service. The states serviced by this website may change from time to time, without notice.
Credit Implications The operator of this website does not make any credit decisions. Independent, participating lenders that you might be matched with may perform credit checks with credit reporting bureaus or obtain consumer reports, typically through alternative providers to determine credit worthiness, credit standing and/or credit capacity. By submitting your information, you agree to allow participating lenders to verify your information and check your credit. Loans provided by independent, participating lenders in our network are designed to provide cash to you to be repaid within a short amount of time. The short-term loans are not a solution for long-term debt and credit difficulties. Only borrow an amount that can be repaid on the date of your next pay period. Consider seeking professional advice regarding your financial needs, risks and alternatives to short-term loans. Late Payments of loans may result in additional fees or collection activities, or both. Each lender has their own terms and conditions, please review their policies for further information. Nonpayment of credit could result in collection activities. Each lender has their own terms and conditions, please review their policies for further information. Every lender has its own renewal policy, which may differ from lender to lender. Please review your lender’s renewal policy.
Cash advances are intended for short-term financial relief and do not constitute long-term financial solutions. Consumers facing debt and credit difficulties should seek out debt and credit advisory help. Consumers are encouraged to consult the federal, state, and local governements to learn more about the risks involved with cash advances, local laws and regulations governing cash advances, possible loan alternatives and recent developments in their state. Consumers with credit difficulties should seek credit counseling. Residents of New York, Arizona, Georgia, Vermont, Virginia & West Virginia are not eligible to apply for a cash advance on this web site.