A payday loan broker is really a professional payday lending referral service. They are not really brokers at all. This term is misused by many people, including direct lenders.
A payday loan referral service accepts applications for loans, collects required personal information, and then presents this to their wide array of lenders to find a loan for the person requesting it.
A direct lender is exactly what it sounds like. It is a business or person that has funds and releases them directly to a bank account upon loan approval. Not everyone who requests a loan will receive one, no matter who they use for their loan request.
There is a myth that referral services charge for what they do but this is not true. Referral services are paid by lenders for marketing. The lender sets their own rates and terms, and each loan requestor decides if the loan is right for themselves.
The cost of a loan to a consumer is no different from a direct lender and a lender from a referral service. Of course, loan fees vary based on a wide range of factors.
A referral service has several advantages, and the biggest one is the much greater percentage of applicants who qualify and receive a loan. In addition, most referral services are online which is far more convenient for consumers. No one wants to drive around going from store to store to find someone who will lend money to them. By using a referral service, this is all done for you in a matter of seconds. And, it can be done right from a smartphone.
The biggest disadvantage of a direct lender is they are just one lender. Depending on your location and financial situation, many lenders may or will not accept your application. Their lending funds may be limited, their criteria may be very strict, and they usually operate in one or a few states, sometimes just one city.
They reject far, far more loan applications than a referral service. Direct lenders say you can check out their history better, but this is not true with the internet. Every quality referral service can be researched on the internet.
CashinaSnap is better than most referral services because it has a large, proven group of lenders (over 100) and has 70%+ of applications accepted for a possible loan. CashinaSnap also has been in business for many years and has a proven reputation for protecting consumer data, following best practices of the OLA, and providing consistent results for its consumers. This stable and successful history separates CashinaSnap from many competitors who have come and gone.
There is no guarantee a loan request will be approved, but CashinaSnap is one of the best online resources for those seeking a payday or short-term emergency loan. Apply now!