Warning: Late repayment can cause you serious money problems. For help, go to moneyadviceservice.org.uk.
Representative Example: Amount of credit: £700 for 11 months at £120.48 per month. Total repayment of £1,325.26. Interest: £625.26. Interest rate: 150% pa (fixed). 277.5% APR Representative.
Understanding what makes direct lenders "direct" is fundamental and simple — when an individual is approved for a loan, and receives the funds directly from the lender, then they are working with a "direct lender." It's really that simple. Still, knowing the definition of "direct lenders" isn't the same as understanding all the details associated with this category of loan providers. Let's take a look at the finer details of direct lenders and the loans they provide.
When you're in the market for extra funding, it's important to understand the pros and cons of the avenues open to you. In the case of working with direct lenders, there are a number of advantages that can simplify the loan process for you.
If you apply for a loan with a direct lender, and are approved, you receive the funds directly from them. No waiting on a third party to relay information or funds. No issues with communicating additional application materials through a proxy. Your contact person is the lender, and when they need to reach out to you, they will do so directly. This may end up saving both parties time when everything's said and done. Application time may vary.
Working with a direct lender means sharing data with fewer people, there's no need to expose it to more people than necessary. Keep any unnecessary third parties out of the arrangement. You have the opportunity to only share information with the lender who is funding your loan, if approved.
This one's pretty simple - if you deal with a third party, there's a chance you'll have to deal with additional costs. These third parties may charge extra for their services. You would not incur these charges when working directly with a lender. While this isn't guaranteed, many lending proxies charge for their services, and when you're taking on a loan, added costs are the last thing you need.
Now that we understand exactly what direct lenders are, it's time to take a closer look at precisely what a direct loan is and how it works.
If a customer comes directly to a lender and avoids going through a middleman the lender will handle the application process itself, including underwriting and approvals. By working with a direct lender you remove the possibility of third-party charges being attached to your loan.
For additional information about lenders and applying with a payday loan direct lender visit our sister site QuickQuid's direct lender page.
For anyone considering a loan, the first step is researching your different lending options. Review the loan amounts and terms being offered, and understand exactly how the process works before you consider applying. Don't be afraid to dig deeper, looking into a lender's customer service and brand - this can be a great way to understand the quality of service you'll be provided should you choose to apply for a loan with that lender.
If you are in need of emergency funding and looking for a direct lender, consider Pounds to Pocket. We offer loans with a personal touch, with loan amounts available up to £2,000† and flexible repayment periods. Because we understand that every borrower has their own unique financial circumstances, we provide loans with repayment terms between 6 and 12 months. You can apply online or on-the-go, and our application process is easy to understand. And as a direct lender, if approved, a customer may have cash sent to their bank account within 10 minutes after approval.§