Direct Payday Lenders

Direct payday lenders are the financial institutions that offer cash advance loans without a middleman. Payday loan lenders online offer a quick loan approval process for direct lender payday loans. Direct payday loan lenders are good for those with bad credit, bad credit payday loans and guaranteed payday loans even for those with poor credit. Unlike banks direct lenders offer instant payday loans and payday cash advances with flexible repayment terms. You can apply online and get financial help for unexpected expenses.

Features

• Quick Loan Approval. Direct payday lenders have a fast loan approval process, often in just a few minutes. This is good for those who need cash for short term financial needs.

• Flexible Repayment Options. Unlike traditional loans from traditional lenders, direct payday lenders offer flexible repayment options, online installment loans and short term loans. These options are for those with poor credit scores or bad credit history, with manageable repayment periods.

• Bad Credit Friendly. Direct payday lenders cater to those with poor credit history by offering bad credit payday loans and guaranteed payday loans. They have lower minimum credit score requirements, so those with poor credit scores can get their loan approved.

• Transparent Terms. Direct payday lenders are responsible lenders, they disclose all hidden fees upfront. This transparency helps borrowers know the full amount of their loan, so they know all the financial obligations before committing.

Pros and Cons

Pros

1. Quick Approval. Direct payday lenders have a fast process where loan applications can be approved in just a few minutes. This is good for those who need cash now, traditional financial industry is too slow.

2. Bad Credit Friendly. Direct payday lenders have more lenient requirements, so those with poor credit history or no credit history can get a loan approved. They offer guaranteed payday loans and bad credit payday loans, those who will be denied payday loans from traditional lenders.

3. Easy Application. With online loans and payday cash advance options, direct payday lenders offer a simple and easy way to apply for loans. You can apply online with a valid checking account or valid bank account, no need to go in-person.

Cons

1. High Interest and Fees. Direct payday lenders charge higher interest and fees than traditional loans. This can make the total cost of borrowing very expensive over the repayment period, especially for short term loans.

2. Debt Cycle. Because of the short repayment periods and high costs, borrowers may find themselves taking out another loan to pay for the previous one. This can lead to debt cycle, it’s hard to get out of debt without credit counseling or other financial help.

3. Limited Loan Amount. The loan amount offered by direct payday lenders are lower than traditional lenders. This is a drawback for those who need larger amount of money to address their financial needs.

How to Apply for a Payday Loan from Direct Lenders?

1. Choose A Payday Lender. Select a reputable payday lender, online or physical location, make sure they comply with state laws and federal regulations.

2. Prepare The Documents. Gather the required documents such as pay stub, social security number, bank account information, proof of income.

3. Fill Out The Application. Fill up the payday loan application form with personal details, employment information and loan amount. Submit online or in person.

4. Review The Payday Loan Agreement. Review the payday loan agreement carefully, read interest rates, fees, repayment terms and due date.

5. Get The Loan Proceeds. Once approved, get the loan proceeds directly to your bank account or prepaid card account, usually on the same business day.

Requirements

According to the U.S. government’s Consumer Financial Protection Bureau (CFPB), to qualify for a loan, most payday lenders only require that borrowers:

1. Age. Must be at least the age of majority, which is 18 in most states, some states require 19 or 21 years old.

2. Active Checking Account. A valid and active bank account for the deposit of loan proceeds and for the lender to withdraw the repayments.

3. Proof Of Income. Borrowers need to show proof of income, such as pay stubs, to show they can repay the loan.

4. Valid ID. Borrowers must present valid ID, which usually includes social security number, to verify their identity.

How to Get the Money

1. Direct Deposit. The most common is direct deposit into your bank account. Once your payday loan application is approved, the payday lender will deposit the loan proceeds into your active checking account, usually on the same business day.

2. Prepaid Debit Card. Some payday lenders offer to load the borrowed amount into a prepaid card account. This is convenient for those who don’t want to use their bank account.

3. Cash. In some cases, especially with in-person payday lenders, you can get the borrowed amount in cash. But this is less common than direct deposit or prepaid card.

4. Check. A few payday lenders might give you a check for the loan amount, you can cash it or deposit it into your bank account.

Payday Loan Rates

Payday loan rates usually involve fees of $10 to $30 per $100 borrowed depending on state laws and borrowing limits. A typical fee is $15 per $100 borrowed, which is an annual percentage rate (APR) of around 400% for a 2 week loan. For example, if you borrow $300, you’ll need to pay back around $345 by next payday. These rates are way higher than other types of loans like personal loans or secured personal loans.

Payday lending is allowed in 37 states, 11 states including Connecticut, Maryland and New York have strict regulations or interest rate caps that limit or prohibit payday lending. Some states like Arkansas and North Carolina have repealed their payday lending laws and others like the District of Columbia have banned it altogether.

18 states and the District of Columbia have usury rate caps, often at 36% APR, to curb high cost payday lending. States like Nebraska, Hawaii, Illinois and New Mexico have recently enacted such caps, it’s a growing trend to regulate payday loan rates.

The highest payday loan rates are in states like Texas (662%), Missouri (652%) and Delaware (639%). On the other hand, states like Oregon (140%), Maine (228%) and Iowa (247%) have lower rates. Some states like Washington and Virginia have additional regulations to limit the number of payday loans or extend the repayment terms to prevent debt traps.

Payday Loan from Direct Lenders. Apply Online

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