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In UK, payday loans are gaining popularity day by day. Payday loans brings fast cash relief to a person trapped in cash crunch, few days prior to his payday. But he wanted to be funded from direct lenders so that he can negotiate directly without and brokers, in this way he will be able to get cheap loans. Other reason for Payday Loans UK direct lenders search may be of fast loan approvals with direct lenders.
Some borrowers may think that payday loans are ultimately funded and approved by direct lenders only, so route to reach them hardly matters. With brokers approach he may get chance to compare among the direct lenders and option to choose the best for you.

Borrowers psychology behind funding from lenders directly


It is observed that web searches for “Payday Loans Direct Lenders Only” are continuously raising high and high. We have tried to analyze reason behind this. Points-wise can summarize as:-
1. With Direct Lender Loan approvals may be fast
Loan applicant think that applying directly with lender will save their time, which is crucial in urgent need of fund. For example if fund is required for medical purpose or car breakdown, then waiting time will be frustrating.
Borrower’s above logic may be partial true, particularly for repeated borrowers of direct lender. As in this case lender already knows his client well and many have his personal details in his database, so processing will be fast. For new and first time costumer, direct lender will be required same details as he requires with broker’s referred customer. The loan form submission time will be the same for both via online mode. Borrower have to fill similar online form whether he goes with direct lender’s website or through brokers online lenders search portal.

2. Brokers may charge commission as upfront charges
Borrower thinks that if he use broker’s online lender search platform, they may charge additional fees for their services. This also be true in some cases, but in general broker’s customer introduction online web portal is free to use. As brokers are paid for loan leads generation by direct lenders only, so they do not charge the customer.

3. Customer may negotiate for cheap loans with direct lender
Borrower think if they bypass the broker and final the deal with direct lender, they have better chance to negotiate for cheap loan. This is also partial true, because if borrower directly approaches to lender, then the middleman ‘broker’ will be eliminated. Now the lender get advantage of free loan lead and have nothing to pay to broker, so he may share some revenue with borrower by giving suitable terms.

4. Direct lenders approve no credit check loans
Customers may think that their direct interaction with lender may help in credit check waiver This is not true. As per FCA directions, lenders have to perform credit check on every loan processing without any fail, to ensure borrowers loan suitability and affordability.

Payday loans are unsecured loans and based on borrowers salary and past credit history. Concept of Payday Loans direct lenders no credit check does not a realistic one. Because lenders are doing their business to earn profit and not doing any social work. Their first objective will be to insure their principal amount then interest income. For bad credit borrowers they take extra care and compulsorily perform credit check to see borrowers past credit history. For past loan defaulters they may not willing to fund and if they agree may charge higher interest.

5. Easy to get bad credit loans
For bad credit score person, direct lender funding is the best, because he can directly communicate and assure the lender about timely repayment of loan. With lender, he can bargain for lower interest rates, as for poor credit score normally lender charges high rates. Credit score of borrower is only one factor in loan approval process. Lender’s loan underwriter check many details of loan seekers and prepare his own ratings. Borrower’s current income, residential accommodation status (owned or rented), outstanding credit card bill, he owned a car etc are other factors which plays vital role in loan decisions. So chances of bad credit payday loan approval is still bright if borrowers present financial status like employment, salary and saving are in good shape. Credit score of the borrower plays a vital loan in loan approval process.
Payday Loans from direct lenders with bad credit is hard to get but not impossible. Some lenders may agree for funding if borrowers present financial position is well, and he can repay the loan. The suitability and affordability of borrower is must as per FCA regulation, without satisfying this lender can not approve any loan.
For bad credit loan, direct lender may charge higher interest and offer short repayment term to compensate them that of bad credit.

6. He may get high acceptance loans
Borrowers think that apply with direct lender will increase the loan acceptance chances. This is not true. The loan approval depends fully on borrower’s suitability of loan and passing the affordability check, loan approval have no link with mode of application.

Summary:
When you are in search of fast and reasonable payday loans to solve your temporary cash crunch, the loan with direct lender is the only way. Funding through brokers may delay the loan processing, because broker will pass your application to those lenders only who will pay him the highest commission. The commission of broker will be additional burden on the lender, that he will pass to borrower only. If borrower bypass the broker and contact lender directly, it will save lender’s expenses of broker’s commission, so lender may pass part of this savings to borrower as decrease the interest rate.

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What are short-term and Long-term loans?


This is classification of loans on the basis of repayment time period. Loan for few weeks to one year are termed as short-term loans. Payday loans Direct Lenders, text loans for bad credit, high cost loans are some examples of short-term loans. Generally no guarantors are required for these loans so sometimes also called as no guarantor loans.
Loan term for 12 months to few years comes under group of long term loans. They are backed by some security and belongs a group of cheap loans. Home buying loan, consumer goods loan, personal loans are some example of long-term loans.

What are Secured and unsecured loans?


We may divide loans in to two categories on the basis of non-repayment risk from a lenders point of view
1. Secured loans: These loans are accepted by the lender after putting any valuable asset like your home or car as collateral. In this case the lender will have nothing to lose if you do not repay the loan; he will recover through sale or your asset. Here you will be the face a huge loss due to loan default.
The lender easily approve these loans, the best part of these loans is they are long-term loans and cheaper in comparison to unsecured loans.
The personal loans, housing loan and car finance are some example of secured loans.
2. Unsecured loans: Here loans are approved for the short duration purely on the basis of affordability of loan, means lender will check your financial status for assessment of timely repayment.
In case of any non-repayment of loan the lender has limited options to recover the loan because short-term loan regulator in the UK, has made very strict rule for charges and penalty of loan default.
Payday loans, text loans, instalment loans, bad credit loans are some example of unsecured loan.

How many Instalment I can repay loan?


Basically instalment loans are long-term loans where principal amount plus interest is repayable in instalments of equal amount per month. These are suitable for higher amount.
For short-term loans like payday loans some lenders approve loan repayment in 3-4 instalments as well.

What are payday loans?


Payday loans are short-term and unsecured loans charged with high interest rates. These loans are good option for temporary and urgent funding only otherwise these costly loans should be avoided.

What are Text Loans?


Many old and new lenders in the UK give special consideration to their loyal and trusted customers in loan application and approval process. These repeated loan customers can apply for fund by simply sending a text message. The lender will fetch the record of the applicant from their database and may approve the loan after basic checks.
This is time saver as well as opportunity for High Acceptance Loans from the direct lenders because you are not new to the lender.

Which is the best Personal loan or payday loan?


Depending on your need both are useful, if you are in need of big amount and wanted to repay in many instalment of small amount then personal loans are the best.
For mini loans of shorter duration payday loans are good option.

What are direct lenders loan?


In any case loan is financed by a direct lender only but there are many agents of these lenders in the market, who pose as lender themselves and making fake promises like “no credit check loans by direct lenders”, “Instant approval loans”, “guaranteed loans”.
The agents of direct lenders are called a broker, they collect your data when you trapped by their catchy advertisement and fill the form with their websites. Now they will sell your details to most reward paying direct lender, till they find the suitable buyer lender they keep you waiting.
This is the reason every loan seeker is trying to connect the lender directly.

What is Bad credit loan?


There is no such loan which is specially made for bad credit applicants, but you have some options in getting loans even with your poor credit. If you can arrange a person as your co-applicant for loan who has good credit score then your application will be treated as normal. Other option for you for loan approval is that you can prove your loan affordability or repaying capacity of applying loan.

What are No Credit Check Loans?


Secured loans were risk is protected by some assets as collateral; the credit check has lesser importance. But for unsecured loans which are approved for shorter term, the credit check is always imperative for assessment of risk by the lender. “No credit check loans” are not available for payday loans.

What are Guarantor loans?


For bad credit loan applicant some lenders required a second person to sign loan deal with the applicant as a co-applicant is called guarantor. The guarantor should have good credit score to cover up poor credit of original borrower. If the borrower fails to repay loan in predefined time frame then the guarantor has to repay the loan.

How to get cheap loans?


Long-term secured loans are cheaper in comparison to short-term unsecured loans. The interest charged by the lender has two components, one for the normal interest rate and other for risk of non-repayment. In unsecured loans the risk component is very big so their cost is very high, for secured loans the risk component is negligible, so they are sometimes called as cheap loans.

What is Debt consolidation loan?


One single loan that you can use to repay all other outstanding loans is called consolidation loan. If you have much short term high cost loans, then you can repay all of them by taking one long term secured loan on cheap rate. This loan will be a consolidation loan for you.

What are fixed rate loans?


From the angle of interest rates the loan may be of two types, fixed rate loan where interest rates are same for full loan term. The second type of loan is variable or floating interest rate loan, here interest rates are fixed for first one or two years then they vary as per central bank’s interest rate.

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What are text loans


Text loans are short term funding by the lenders for their returning customers of the previous online Payday loans . These loans are not available for the first time borrowers.
Because lenders already have the data of the loyal customers so some times they offer instant loan approvals.

Why text loans are popular?


Short term loans are high cost loans, so you will go for them only in case of urgent need of money, otherwise you can manage these cash requirements via regular funding from the bank.
Text loans can be applied through your mobile text message and no need to fill long loan application form. The lenders will treat this message as your application. They will call for all the required details from their database and take quick loan decision. approved loan will be credited directly to your bank. This facility save your time in getting emergency funding which is a prime factor.
Some other advantage of text loans are:

1.Flexibility in application time:

The online mode of Text loans has brought great relief to persons who are in urgent need of cash but have no time to visit lender’s office. For example the employed persons who have to take leave to search the cheap loan from this lender’s office to that lender’s office. By online application you can apply and search in quick time span at your home or office. Here you have full freedom for choice of place and time for loan application.

2. Instant decisions save time:

Many direct Lenders use latest technology in loan application processing so you can get quick response to your application. If you wish to proceed further then OK otherwise you can try with other lender’s website.

3. No paper check is required:

Online loan system is fully computer driven, so no hard copy of document is required. If the lender asks for some proof regarding your income or bank details you can email them.

4. Free loan quote:

You can get many free loan quotations with different lenders or brokers website, now compare them and take your beneficial decision.

5. Free market survey to find the best:

By comparing loan quotes and reading review about that lender you can easily find the best loan solution.

6. Fast loan payouts:

When your loan is approved by the lender and you agreed upon their terms, money will directly credited in your bank through wire transfer in next few minutes if you have finished it before 3 pm in any working days.

7. Automated loan repayment:

Lender will ask you to sign a digital mandate form after this loan amount is directly debited from your account on pre-decided date.

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Categories Payday Loans UK, Text Loans UK

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Robert S Johns has been associated with TextLoans1000 as a content writer for over five years. Since inception of Text Loans 1000 in January 2014, he is providing a valuable contribution as writer and editor.
He has his master’s in science and bachelor’s in journalism has given him a special ability of logical thinking about the issues of the society.
He is writing articles in many websites like academia.edu, writerscafe.org, folkd.com, blogolink.com, ishowcase.net, bizcommunity.com, etc.
John is very fond of nature and bird watching, whenever the time permits, he enjoy the trekking and mountaineering.

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Credit score is numeric rating of your past credit history and it is maintained by three agencies Experian, Equifax and Callcredit in the UK. All these have their own criteria for ratings but one thing is common that if you have outstanding credit in your name rating will go down.

Why Credit Score is so important?
Credit Ratings are now considered as your financial status, so it plays a vital role for every part of life. For example your loan or credit card application, gas or electric connection application, rented house agreement or even in the getting employment, you will face many problems with poor or bad credit history. Many lenders refuse to fund a person with poor credit history and if some lenders agree to lend they may charge higher interest rates.

How to manage good credit score?
First of all you should check your credit score from time to time, which is available online and free of charge. This will help you to know the latest place so that you can take corrective measures if required.

If you find that your score is poor then you may take these steps to improve it.
1. Establish your identity by registering in electoral roll if not in list till now. You can do this online as well.
2. Close your old credit accounts which are not in use now.
3. Try to distribute credit card bill in all credit card you have. Agency will consider percentage of credit card used limit for credit score calculation. For example if credit card limit is 1000 pounds and you have used 500 pounds then it will show 50% uses and if you have other credit card then pass some amount to repay this card balance.
4. If you have different types of small loans with many lenders then try pay these loans by taking a single personal loan.
5. Try to pay bills on time.
6. Avoid to take loan which is out of reach of monthly savings to repay it.
7. Frequent house change also adversely affect your credibility in front of lenders.
8. Short term loans like payday or text loans are costly affairs so do not use them as regular practice
9. Keep loan amount well within reach and repay it timely otherwise this will hit hard to credit score and cause you financial losses also.
10. If you feel inability in loan repayment then tell your lender well in advance so that he may rearrange your loan. If you become loan defaulter without informing lender then he may take help of third-party recovery agents and this other charges will also be extra burden on you.

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Categories Credit Score, Text Loans No Credit Check