Advantages of Direct Payday Lending
Depending on whether you have conducted any prior research or not, you may be aware of the different types of lending, one of which includes direct lending from individual lenders. Direct lending occurs when the borrower receives a payday or short term loan directly from the lender without using a third party, this usually occurs through the online application process found on a website. Different lenders will offer different initial processes before accepting your payday or short term loan. So, before submitting any applications, we suggest weighing up the pros and cons of lenders and brokers. We understand that relying on online loans from direct lenders will assist you in any financial difficulties encountered by offering a sum of immediate cash when you need money urgently. In only a few clicks, you could have the funds in your account. So, what are the other benefits of direct lending?
Bad Credit Loans Through Direct Lenders
When you apply through a direct lender, they will automatically receive all the submitted information required to evaluate your application, at which point they can quickly decide whether to approve your application and deposit the funds to your bank account, or whether you are not a suitable fit for them. In many cases, lenders like us at BingoLoans offer bad credit loans for those who do not fit the requirements of the general payday loan application process. We understand that not everybody has had the easiest financial journey, therefore, borrowing a bad credit loan will offer even those with a poorer credit score the opportunity.
Borrowing from a direct lender is much simpler than borrowing through a broker. The direct interaction makes communication between the two parties much simpler. From the start of the process to the end, the borrower will know exactly who to contact if they’re faced with any issues, and more often than not, a lender will provide multiple sources of communication, from email addresses to postcodes, to ensure that a borrower has all the information needed if necessary. However, most of the time, the lender process is much more straightforward than anticipated.
Depending on your lender, direct loans could be released more quickly than others transferred from third parties. When there are fewer stakeholders involved, the loan approval system can typically be completed much faster. By applying directly, loans can be approved by direct lenders without going through an external approval process, keeping the steps simple and easy. In some circumstances, some direct lenders will have close relationships with third parties or also act as brokers. Therefore, if they cannot approve your loan, they’ll help find the funds you need without damaging your credit score.
Data Safety in Direct Lending
Compared to indirect lenders, direct lenders commonly offer stronger protection. With indirect lenders, third parties may receive access to your information, especially if you are borrowing through an unregulated lender. This is something you should be aware of before submitting any personal data. If a lender is regulated, this will be stated on the direct lender’s or broker’s website. You can review the legitimacy of the regulation using the FCA. If unregulated, the risk of a data breach is higher. However, if you use a regulated direct lender like BingoLoans, this risk is lowered. This is because your data is kept on-site, and we take pride in protecting your information.