Best Payday Loan Direct Lenders 2021

People with bad credit score can always turn to alternative loan providers through a loan connection service or payday loan direct lenders.

Payday loan direct lenders are credit providers who engage you directly without involving the middlemen. They handle your application, process your request, and fund it.

Now, why is it essential to deal with a direct lender? Well, it’s simple, you don’t need to go through a broker, which means you save money that would have gone into commissions. Also, your details remain with one organisation. Plus, direct lenders quickly process your request, awarding you the money you urgently need as soon as possible.

In general, the UK market has a good number of payday direct loan lenders operating, but getting the right one is a cherry-picking affair. In this guide, we help you identify a payday loan direct lender, how to submit your application process, and compare some of the best direct lenders.

Features of a Payday Loans Direct Lender

With many lenders, financial brokers, and price comparison websites, it can be confusing to identify a direct lender. Save for transparent providers who clearly outline their services and fees they charge, and some lenders don’t.

Since a direct lender both originates and processes your loan application, the entire lending process happens in one place. Thus, your questions or concerns can quickly get answered. Also, the loan process as a whole is faster.

But not all direct short-term loan lenders are the same. That’s why some times using a broker is effective. These intermediaries would match your situation with the best lender for you. However, the process takes time, and you may have to pay higher fees owing to commissions.

You don’t have the luxury of comparing lenders when you choose to use payday loans direct lenders. You have to do that yourself, moving from one lender to another, which is typically much more complicated than a comparison shop.

Pros and Cons of Payday Loans Direct Lenders

How We Rank Payday Loans Direct Lenders

We know you need an ethical payday loans direct lender that is honest and provide clear and easy to understand information about its services. The lender needs to be compliant with the Financial Conduct Authority guidelines. But most lenders do just that, so, how do you separate the good from the best? Here are the factors we use:

• Cost of borrowing from the lender.
• No hidden nor upfront fees
• Same day funding option
• Availability of risk-free personalised quotes
• Eligibility indicator
• Loan terms
• Conditions for loan restructuring
• No guarantor required
• Bad credit considered
• Instant decision

Payday Loans Direct Lenders – How do they work?

Payday loans are short-term credits you go for to sustain you until your next paycheque arrives. They are suitable for emergencies or as cover for unplanned short-term expense.

Most of the lenders we have discussed above will fund your application on the same day you submit your request unless you do so after business hours.

Depending on your agreement with the lender, you’ll pay off the loan within one 7 to 90 days of borrowing it. However, this kind of loans is not suitable for the long term. They accumulate interest daily. So, the longer you hold on the credit, the higher the cost you accrue. Therefore, you should settle such as loan as soon as you can.

What’s more, you can always repay early and save on interest fees. Otherwise, failing to honour your payments may land in trouble as it will invite a penalty fee, which will only compound your financial problems.

Payday Loans Eligibility

Every lender has a unique eligibility requirement you must meet, which is why you need to find a lender that meets your exact borrowing needs.  But some conditions are universal. In most cases, the criteria to submit your loan request includes:

• UK resident
• Must be 18 years of age, but some lenders go for 21 years.
• Must be employed
• Must have a UK bank account with a linked debit card
• Must provide a valid email address and mobile number
• Must not be bankruptcy,
• Some lenders may not allow a CCJ or IVAs

Most payday lenders target people with bad credit. That means your credit score is not necessarily a determinant of whether you get approved for a loan or not.

The Need for Credit and affordability checks

Affordability and credit checks are mandatory for every loan application, whether it is a first time or subsequent payday loan application.  The FCA requires that lenders carry out credit and affordability checks of their borrowers before granting loans. The law does not exempt payday loans direct lenders either. With that, some lenders may carry out a soft or hard credit check. But as we have already stated, your score won’t matter in the end.

These checks are to protect the borrower from borrowing more than they can manage or afford to pay comfortably. Affordability checks compare your income to your expenses and establish whether there’s room for left for repayment amount that won’t get you into problems. That way, the lender can tell how much credit you may get.

For example, if you are already holding another payday loan, it might affect the amount of the new loan you can have. As such, you may qualify for a smaller amount or may not even qualify at all. But it all depends on the lender’s unique eligibility requirements.

Repaying Payday Loans

Once you have received the loan, you must begin repaying them as per the lender’s developed schedule. You must pay the loan amount, interest, plus all the applicable fees.

Lenders require you give your bank and debit card details to allow continuous payment authority (CPA). With the CPA, the lender automatically withdraws the repayment from your account periodically. However, you must ensure your account has sufficient funds. If you don’t, your bank may charge you overdraft fees or the lender may penalise you for failing to honour your payment in time.

A reputable lender will alert you a day before they make they draw you’re your account. And since you are dealing with a direct lender, you can reach them quickly to let them know if you are facing any financial difficulty.

The Best Payday Loans Direct Lenders

Final Word

Payday Loans direct lenders become your financial partners because of the lack of a better option. As you have seen, their products can quickly help you out of small money problems, but they are not solutions to underlying financial challenges.  To be honest, if you don’t use them diligently, you can quickly enter into a debt cycle, because even though you repay them in smaller, manageable monthly instalments, they are expensive in the long haul.

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