Payday Loan Brokers are the middle men. They match up people looking for a payday loan with the direct payday lenders.
A Payday Loan broker will do everything it can to bring people who are searching on the web for a payday loan to their website.
Once you get there, the payday loan broker will capture your information via an online form – in pretty much exactly the same way as you would fill in an online application form on a direct payday lenders’ website.
The broker will then send your information to the many different direct payday lenders that they work with, and your application will continue to be passed on to direct payday lenders until you are accepted for a loan.
You have no control over which companies your personal information is sent to, and you will probably NEVER know.
If none of these companies accept you for a loan then you will have just had many credit checks done against your name which can leave a bad mark on your credit score, and record. If you only apply to one direct lender and you get turned down, one refusal is not so bad to have on your credit file.
When you get accepted for a loan, the payday loan broker gets a commission for sending the payday lender the lead – you.
There are HUNDREDS if not THOUSANDS of these types of companies and websites, and you should be wary of them.
We need to repeat what we said above:
You should be VERY wary of giving your personal details to a payday loans broker, over going direct to a DIRECT payday loan lender, because:
1. You do not know OR have any control over WHICH payday loans lenders your personal information is sent to. If possible you should keep total control of which companies you apply to if you need a payday loan.
2. If you are turned down by the first company then the broker will continue to send your information to other payday loans companies until you are approved. Too many credit searches decrease the chances of you getting accepted for ANY further credit, so please be aware of this.
3. Some of these brokers will send your details to unscrupulous payday lenders and you can get unsolicited phone calls at the very least, and at worst, serious fraud if you have given your bank account details and personal information.
Not all brokers are bad, however, but you really need to do your research first. Going to a direct payday lender will cut out this risk for you, providing you choose a reputable direct payday lender.