Let us start of by simply defining the difference between direct payday lenders and payday brokers, and also, look into the pro’s and con’s of the services which both provide.
We’ll look at payday brokers first. Payday brokers are usually affiliated to a great number of payday lending institutions across many different states. They operate by gathering the necessary information from as many potential clients as possible.
They then blast off this customer information (known as leads) to their vast network of direct lenders hoping that many will convert into paying customers, for which they will collect some commission.
Payday brokers can be good for those people seeking bad credit payday loans because their uttermost goal is to get you approved by a lending agency. The draw back of course, is that they do not care so much about getting you the best rate possible–sometimes it can be quite the opposite, as naturally, they will hope to get you accepted by the lender that offers the highest commission.
If you are looking to get a better rate on you payday loan you will of course want to shop around a bit first–this is impossible to do with brokers because they do the shopping for you, and never disclose potential loan rates and fees.
So if you would like to compare payday loans yourself, you are going to have to seek out and deal with the compare payday loans themselves.
Things you should know before doing this: When comparing payday loans be advised that lending institutions are controlled by state laws, and that these laws can vary greatly between states.
This becomes important when one direct lender offers loans at better rate than another in one state, yet in your state they are the more expensive option–and you don’t want to make that mistake.
Obviously, the safest way to go is to create a short list of direct lenders and then compare them by state in one sitting, and then go with the least expensive option, hoping that they of course, approve your application.