The Difference Between a Direct Payday Loan Lender and a Matching Service
When emergency expenses arise, payday loans can help you manage costs. Whether it’s auto repairs or last-minute travel, a short-term loan can help you cover unexpected expenses until payday. There are multiple ways to apply for short-term funding. You can visit a storefront location, or apply from the comfort of your home from a direct payday loan lender or payday loan pairing service.
How to Choose a Payday Loan Website
Conduct a search for “payday loans” online, and you’ll find hundreds of websites offering up to $1,000 in quick funding. Some sites represent direct payday lenders, while others are lender pairing services. It can be hard to tell whether a site is from a direct lender or pairing service. To find the answer check the site’s “About Us” section or “Terms of Service.”
Make sure that your lender is certified. Borrowing from an uncertified payday loan lender can put you at risk. It’s also important to confirm the website is secure. When you submit your loan application online, you want to make sure that the form is electronically encrypted, so that your personal information is protected.
What is a payday loan pairing service?
You may have used a payday lending pairing service and not even known it. With a direct payday loan lender, your application goes to that lender, and that lender alone. Applying for a payday loan with one lender at a time means more work for you, and can cost you. With a short-term loan pairing service, the website connects you with a network of payday loan lenders automatically.
On a lender pairing service website, the consumer fills out one online application form that is electronically submitted to several lenders. The payday lenders review the application, and confirms if the customer qualifies. If the consumer qualifies, they can receive multiple offers from lenders within the company’s network.
By using a lender pairing service, you can apply once and receive multiple offers. This allows you to compare multiple offers – and find the best one. You can compare interest rates, fees and lender terms to make sure you secure the best payday loan offer for your financial needs.
When to Use a Payday Loan Pairing Service
When deciding between a payday loan pairing service, and a direct payday loan lender consider your priorities. If you prefer minimal outreach or prefer a specific lender, you can work with a lender directly. However, a lender pairing service might be better for you if:
- You want to increase your chances of getting approved for a loan
- Want to compare interest rates and fees to secure the lowest rates
- Want to compare lender terms to find the best terms for your financial situation
- Want to reduce the amount of applications you need to submit
- Want to increase your likelihood of acquiring a higher loan amount
Time to Choose
The decision is ultimately up to you, and your specific financial needs. There are benefits to applying directly with a payday loan lender, and many benefits associated with using a lender pairing service. Whichever you decide, be sure you understand the terms of your loan, and always borrow responsibly.