Many people face money problems especially at the end of the month when there is no money left in amount and some type of emergency comes up. People find it hard to cope up with these emergencies when they do not have any savings. Using the money from the monthly budget is a very bad idea because it will upset the budget for a very long time. Borrowing money from banks and money lending companies is a good option but if you need small amount from 100 dollars to 5000 dollars for short time period forget the banks, they are not going to approve such loan applications. The best option is to apply for payday loan.
A payday loan is a type of personal loan, which helps people when they need money for emergencies like house repairs, car repairs, medical problems, wedding rings, school fees and many such problems. This type of loan has many other names such as unsecured loan and online loan. This loan does not require any type of guarantee or security that is the reason for it being known as an unsecured loan. A person can apply for it online through websites and is has named online short term personal loan. Choosing the company for a loan is a very hard job. There are many companies and that makes things confusing for people. There are two types of companies which are providing this type of loan. Direct money lenders and brokers.
Direct money lenders
Direct money lenders are those people who are working on their own. They do not have other lenders working with them and if in case they have, the borrower will not know about them. The borrower will have to agree with whatever offer the lender is giving. The borrower will have to go to many companies to get the best offer for the loan. The interest rate of the lender will be high and you will have to accept that even if you do not like it because you wouldn’t have many options. It is very much possible that the direct lender will ask you to pay the money back in wholesome at your next payday, you won’t get the option of returning the money in installments.
Broker, on the other hand, will have contacts with many other lenders. You will give your requirements to the broker and he will pass them to different lenders. Those lenders will give different offers with different interest rates. The borrower will have to decide with one offer which will be according to his requirements. The broker will give the contacts details of the borrower to the lender chosen by him and other details will be finalized directly between lender and borrower. Loan2Payday.co.uk is the best example of payday broker website. You can click here for more information.
You can get the details from both types of companies just to check out which one is better. The process of application is same for both types of companies. You will have to fill the application form with your personal details, bank account details and job details. Generally, the companies take 24 hours maximum to transfer the money but there are some companies which are transferring the money in just 30 minutes.