Payday loans can be highly beneficial when you’re in a bind and need access to cash before your next paycheck. Payday loans are shorter term than most loans, easy to apply for, and generally quick to access.
However, before you apply for a payday loan, you will want to make sure that the lender you will be working with is reputable. So, before you go borrowing money, here are some tips on how you know if the payday loan company you want to use is legitimate:
What Should I Look for in a Lender?
A reputable lender will have credentials that you can cross-check. They will clearly define loan terms and provide an interest rate that is comparable to the industry standard. They will also follow industry regulations and laws associated with lending. Recently, the regulations for payday loans were made stricter to protect the borrower. Make sure these protections and disclosures are fully incorporated into your loan agreement.
By ensuring your lender is credible and offers you the protections you rightfully deserve as a borrower, you avoid unnecessary stress and possible unregulated payments. Knowing that you are using a company that will uphold its loan terms and make sure they are legal and reasonable. A reputable lender will also have good customer service policies like extended hours of operations and ease of making payments, good lenders want to make things easy for their customers.
What Is the Difference Between a Direct Payday Lender and a Third-Party Lender?
Another way you can make sure your lender is reputable is by ensuring that the firm is a direct payday lender and not a third-party operation. There are several reasons you’ll want to work with a direct lender rather than a third-party lender.
The main difference between a payday lender and a third party operation is that a direct payday lender will manage every aspect of your loan, and the third party lender will be working as a middleman. This means that they will send your information to several different lenders, working to find a lender that will approve you. A direct payday lender handles the loan entirely, from the application process to approval to funding. They also send you the funds and collect your payments directly.
The biggest reason to work with a direct lender is that you really don’t need a middleman to get approved for a payday loan, especially if you meet all the necessary requirements. Payday loans are short-term and are generally easy to qualify for with a direct lender, so working with a third-party lender will just cost you more time and money that you need to spend.
Another significant benefit of using a direct lender instead is that data protection is part of the deal. They will keep your personal information confidential. If you are using a third-party lender, you have no idea how many lenders your data was sent to, so you, in essence, give up your right to anonymity. Customer service also tends to be much better quality with a direct lender, since you’ll only have to be in contact with one company for all your loan questions and inquiries.
At Cashback Loans, we handle your payday loan from start to finish. We make sure the loan terms are stated clearly and upfront, so you don’t get bombarded with hidden fees. There is no middleman involved, so you can rest assured you’ll get the customer service and speed you need when it comes to getting a payday loan.
Unlike other online companies, Cashback Loans also offers a unique fast deposit option, meaning you don’t have to wait days for your loan to be processed and deposited into your account. Once you are approved, which can happen immediately after you submit an application, a fast deposit can be sent to your account within minutes.
If you’re ready to apply for a payday loan, work with an established payday lender like Cashback Loans by filling out our easy online application.