Payday Loans

3 Crucial Things About Direct Payday Advance Lender

Just like any other payday loan company, a direct payday advance lender also offers short-term loans of very small amount at extremely high charges. The only thing that makes them different from usual pay day lenders is that they deal with their customers directly. It means there are no brokers involved in the process. On the other hand, most payday lenders allow agents and brokers to ring customers for them. Brokers obviously charge a commission, which eventually increases the cost of the loan furthermore. It is because of the absence of brokers in the process why direct payday lenders are often also referred to as no-brokers payday loan lenders. Following are three crucial things that you must know about these types of payday advance companies.

Legal Limit On Interest Rates

The interest rates are usually charged at a 3-digit APR, which can range from 290% per annum to 989% per annum. In some states, where the laws are still in favor of these lenders, the rates can even in 4-digit APR. For example, Missouri payday loan companies charge up to $75 on every $100 of loan issued for a short period of

14 days, which means an APR of 1980% per annum. Therefore, if you are considering borrowing from a direct payday advance lender, you must read the terms and conditions thoroughly. Borrowing these loans obviously does not make a wise financial decision because of the extremely high cost associated with the same.

Hidden Charges – Additional Fees

Just like other payday loan companies, a direct payday advance lender also charges various types of fees in addition to the interest charges. This can be a substantial amount of money, which makes things look more horrible. The advertisements though may look very lucrative because lenders often do not disclose all the charges publicly. In general, these loans are advertised as very easy and cheap loans. You are strongly recommended to read the fine prints thoroughly to get the real picture about the cost of these loans.

Be Extra Careful While Borrowing From Internet Based Lenders

You need to be extra careful while borrowing money from a direct payday advance lender who operates its business through Internet and does not have a physical office in your area. It is often very difficult to be sure about the legitimacy of such lenders. The risks are viagra uk much greater if you are residing in one cheap viagra tablets of the sixteen states where all types of payday lending programs are legally banned. Online payday loan companies often give various excuses on why there is nothing wrong in issuing payday loans to even the people residing in such states. For example, they claim that they

have not their offices located in your state and that they are otherwise licensed lenders. Such excuses are quite lame. In reality, if payday lending is illegal in your state, no lenders (irrespective of which part of the world their offices are located at) can issue a loan to you; if they do, it is considered as an illegal activity.

Overall, as you can see, a borrowing from a direct payday advance lender may look like an attractive option because no brokers are involved in the process, but if you look at the things more deeply, you will find that even these lenders are no different than other payday loan companies. Direct payday loans are as risky and costly as any other form of payday lending can be.

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