Direct Payday Loan Lender

Direct payday loan lenders

A direct payday loan lender is the one to whom many turn in hard times when their personal finances take a hit. These people come to be a blessing in disguise when urgent money is required as they tend to be able to provide the needed amount in a much lesser time frame. Keeping this fact aside, as we all know there are some terms and conditions attached to all forms of loans. Those attached with the direct payday loans are pretty drastic which may be or may not be in the favor of the person acquiring it. It is best to look at both these aspects before committing yourself to one of them.

The positive aspects: The lenders of direct payday loans function and organize themselves in such a way that they can provide for loans ranging from $100 – $1000 without much hassles. If you have the required documentations ready with you, there is a good possibility that you might walk out with that money in hand or deposited in your bank account. This fast mechanism is missing in the usual bank loan sector where there are stringent checks and the loan gets approved only after a week or two. This advantage can be utilized by people who do not have the waiting time and need to get things done soon.

Another facility provided by the direct payday loan lenders is that you can apply for one on their online portals and hence, there is no need to visit their offices. The loan amount, if sanctioned would be deposited in your bank account on the same or the next day itself. No other mechanism of financial aid is so helping and compromising at the same time.

The negative aspects: With such good positives, many would fail to notice the negatives at all. But, if we look at it, the negatives can be alarming too many. The biggest problem that arises with such gracious facilities is that the interest rates are very steep. When we say they are steep, we mean it. In certain cases, the interest rates can be so high that you might need to pay $35 for every $100 that you borrow. This interest rate is way too high for people already in a financial crunch. The problem further increases if the repayment is not done on time as additional charges would be levied which has the potential to trap you in a vicious circle of loans.

Some people choose to take loans from a direct payday loan lender for the simple fact that it does not reflect in their scores thereby preserving their potential to get loans from a bank at better rates. What they forget is that if the payday loans are not repaid in time, they can still affect your score. Borrowing sums of money higher that what you have the possibility of repaying is something that many would not suggest for the simple fact that it can lead to consequences which can be dire and have a deep impact.

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