Direct vs Broker Payday Loans

With the economy in the state it’s been in for the last ten years, none of us are doing as well financially as we would hope.

This is just the truth of living in a country where wages have been stagnating for forty years and healthcare costs are the leading cause of bankruptcy. But to combat these tough financial factors weight against them, many households have had to turn to payday loans.

Direct vs Broker Payday Loans

Not all payday loans are created equal though, and for the uninitiated, there are two primary types of companies that you should be aware of that offer payday loans: direct lenders and brokers. What are the differences between the two? We’re glad you asked!

Direct Payday Loan Companies

Direct payday loan companies (like us) are companies that offer payday loans directly, meaning that they give you the money and you’re getting it directly from them, no third party involved. Direct payday loan companies are generally large companies with multiple locations. Because of this, they tend to be relatively reputable and easy to find other customer reviews to make sure they won’t just take your money and run. 

Broker Payday Loan Companies

While there are reputable broker payday loan companies, pursuing a payday loan through them is more likely to be a risk. The reason for this is that a broker payday loan company doesn’t directly loan you money, but instead connects those seeking payday loans with companies that offer them.

Think of them the same you would a matchmaker or other third-party service that matches customers with companies. There’s nothing inherently wrong with a service like this, but unfortunately, many brokers ask for you to input detailed financial information with no guarantee of privacy. Once they have your financial information many brokers simply sell that information to other sites and companies without actually helping you secure the loan you were looking for in the first place.

Also, brace yourself for the stream of calls and email offers you’re going to be getting for years afterward. Think robocalls are annoying now? Just wait until your private information has been shared with every type of miscellaneous financial company under the sun.

A Kentucky Kind of Payday Loan

More than the above points, though, there simply isn’t much of a reason to use a broker company in today’s digital age when you can circumnavigate them by just doing a quick online search for payday loans near your area.

 

 

Especially if you’re in the state of Kentucky, all you need to do to see if a payday loan in Kentucky is right for you is to fill out our simple online request form after which a representative will contact you promptly.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.