Payday loans are the life savers in emergencies, especially when your credit score prevents banks from lending a loan to you. Although they come with higher rates of interests, the short time gap between application and approval soothes the hesitation. When payday loans seem to be the final resort, you should go for them, but a few things need to be kept in mind.
The lender choosing process must be accounted for rigorously to curb the risks involved. You should approach direct lenders instead of third party lenders or brokers. And why exactly should you do that?
Let us compare both kinds of lenders using a realistic example.
Eddy, a middle class bachelor found himself in an emergency situation where the only solution seemed to be a loan. His spendthrift attitude had already placed him under a mountain of debts and therefore, the banks rejected his loan proposal. His deteriorated credit score caused him to look for alternatives, but since he was running out of time, he resorted to a payday loan. Out of desperation, he approached a third party lender without any consultation.
Were his problems resolved? Let us find out.
The aftermath was totally unexpected. Eddy started getting phone calls and spam mail instead of the quick cash he was hoping for. The nuisance added to his problems and he became a prey to depression. That’s when a savior emerged and aided him in battling his horrors. His colleague, Ned listened to his cries and post analysis of his methods, beckoned where and how Eddy went wrong. He told Eddy that his choice of the lender was incorrect and that little detail he ignored caused all the mayhem. Ned gave him the contact of a local direct lender from whom he once borrowed cash in a similar emergency scenario. Eddy went to this lender and got the cash he wanted. For more details on payday loans and lenders, check out icash.
The Saga continues….
Eddy resolved his problems with the cash he borrowed and repaid the amount with the next couple of paychecks. His gamble paid off well and he had finally regained the peace of mind he longed for. Ned and his direct lender were like angels in disguise to him and he was grateful to them.
So, what do you learn from Eddy’s antics?
When it comes to payday loans, the direct lenders are the prime choice for they are the ones who lend cash and you don’t need the interference of any external agent(s). On the other hand, third party brokers sell your info to potential lenders, including credit companies and agencies and they start contacting and spamming you with myriads of mails, messages and calls. This drastically increments the troubles and should be avoided. Therefore, you should approach a lender post adequate research and consultation. Deny any tempting offers made by the brokers for your own well being. If you’ve decided to take the risk, then endeavor to minimize its negative effects with utmost care.