Direct lender loans or brokers

Direct lender loans are always the most preferred route to take when needing emergency cash. However, finding the right lender is most crucial. Direct lender loans are always will have the most information available on site and customer service is direct. Most importantly, going to a direct lender may cost you less in fees that would have to pay to a broker.

Brokers tend to charge a one off fee to help you get a loan. This does not always mean you will get what you want. The fee will cover their administrative work such as apply on your behalf and just helping to the end of the process. Brokers are not a guaranteed service. Although they apply in behalf of you through their panel of direct lenders, you may be directly credit searched multiple of times in a short period of time. These are called ‘Application Looks’ also known as footprints or searches. Having lots of searches will give a slight indication to lenders that you may be shopping around and it may affect your ability to get a loan.

Direct lender loans or brokers with no fee are completely different entities. You must make sure you can differentiate them from each other. They both may be regulated with another category on their license, thus having permissions to carry out different regulatory activities. Both must abide to the promotion aspect on their documents and online. They must display disclaimers on their site, in a prominent place, letting you know which type of financial business they are.

The processing time from start to finish between both a direct lender and a broker differs. Direct lender loans tend to be very fast as it is completely direct between yourself and the lender.