There are advantages of using direct lenders only when taking out a payday loan. Some of these are:
If you go with a lender through an introducer, then they could be dearer because they will be paying the introducer and will therefore have to incorporate that cost into their loan. This may not always be the case, but it is wise to be aware of this, so that you can make sure that when you are comparing loans and looking at the prices, that there may be a difference between those you go to directly and those that you do not.
It may also be quicker to apply if you go directly as you will just have to put your details in to one site. If you go to a comparison site, for example, you will have to put in details there and then may have to do it again, once you decide which lender to go with. Although this may not take that long, if you are in a hurry for a loan, any amount of time that you can save, could make a big difference. You certainly do not want to be wasting time.
If you use a comparison site or any other sort of introducer, it means that you will be putting your requirements in their hands. Some people like this as it takes the responsibility away from themselves and they can leave it someone who knows what they are doing. However, some people do prefer to be more in control and be able to have a look for themselves at the different options so that they can make sure that they really are going with the right option for them.
So after looking at the above, you may be tempted to conclude that a direct lender is the best option. However, it does all depend on you. You may feel daunted at not even know where to start with looking for a loan for yourself. If you have never had a payday loan before, then it will not be surprising if you feel like you need some help.
Representative Example: £400 borrowed for 90 days. Total amount repayable is £561.92 in 3 monthly instalments of £187.31. Interest charged is £161.92, interest rate 161.9% (variable). Representative 305.9% APR. We are a broker not a lender. We don't charge fees. We don't sell your personal information.
If you try to find every payday lender in the UK (probably around 50 companies) and look at each to see which is most suitable for you, you will be working at it for a very long time! It may be that you would rather go with lenders that you have heard of and although this will reduce the amount that you have to look at, it could mean that you miss out ones that actually offer you a better deal.
Finding all of those lenders can be a chore as well. They may not all be that obvious if you do a search online. It can therefore be useful to use a comparison website or introducer as they will know of many lenders and it will allow you to see a variety of them. This could help you to get to know some of the lenders that you may not have already heard of.
It is best to think about what you want form a loan and how long you have available to research it first. Many people taking out this sort of loan will be in a hurry and may not have the time available to do lots of research. Although it is always wise to compare a few lenders, there is unlikely to be enough time to find a large sample and compare all of them. Therefore using an introducer to help you could really help you.
However, it is also important to think about the reputation of the lender of what other people think of them. If you can speak to people about their experiences with different lenders, either face to face, on social media or look on message boards. This should not take too long and will help you to make a better choice. It can be tempting to always think the cheapest is the best, but once you see other people’s opinions, you may change your mind on this as there are other factors that are important as well.