Why Do People Opt For Payday Loans From Direct Lenders?
A direct lender is an institution or a private company that provides a loan. When you need a payday loan you can work with a broker who will help find a direct lender for you, or you can just search online to find one.
Direct lenders generally do not require security for payday loans, and since you are dealing with just one company the approval process and the cash funding can be a lot quicker. Most direct lenders have websites that operate 24/7, allowing you to secure a loan anytime.
There are many direct lenders for payday loans in the financial market, and you can access them without going through a third party, although it will pay to be knowledgeable about the loan market, and what terms and conditions are available.
How to Choose the Best Direct Lenders for Payday Loans?
There are several points to consider when choosing a loan company:
- One of the most important aspects is the terms and conditions of the loan. You should know the interest rate, which some lenders charge as a fixed fee. Are there extra fees like establishment or application fees at the start of the loan? Are there early and late payment penalties? Can the loan repayment schedule be renegotiated at any time?
- You should check that you are dealing with a reputable loan company. There are a number of business review websites such as CHOICE, Trustpilot, and ProductReview where experts and consumers offer their opinions on companies such as loan providers, and you should find and read these first.
- In terms of convenience, is the lender's office easy to access or is their website easy to navigate, and is the online application process fast and simple? Ideally, you should be able to do everything from the comfort of your own home if applying online.
Is WeLoans a Direct Lender?
WeLoans is an online broker, not a direct lender, and using WeLoans service has a number of advantages:
- The whole application process is easy and takes just a few minutes. No paperwork is needed, you just have to submit accurate information along with your personal details.
- WeLoans has lenders that can offer a variety of loan options including payday loans, bad credit loans, Centrelink loans, and quick cash loans. WeLoans can also connect you with lenders who can offer different terms and rates for you to choose from.
- The lenders that WeLoans partner with are selected for their flexibility with simple eligibility requirements, meaning that you can easily get approved for a payday loan even with bad credit.
- Finally, the best part is that WeLoans service is completely free and transparent, with no hidden costs.
How Can WeLoans Help Me Get a Payday Loan?
To get a payday loan through WeLoans, you just need to follow three steps:
- First, fill out the easy online loan request form with your personal details like name, age, address, phone number, etc, along with information about your financial situation. Make sure all the details are correct before submitting.
- Submit the form with one click, and you will be instantly connected to lenders in our network who provide payday loans with bad credit. They will send you fast quotes so you can compare them before deciding which one is the best deal.
- Once you have decided, you can sign the loan contract digitally online, and the money will be available to you usually within the same day.
Who Can Avail Oneself of a Payday Loan With a Direct Lender?
Payday loans are available with simple eligibility requirements:
- You must be at least 18 years of age.
- You must be an Australian resident.
- You have a minimum regular income, usually around $350 a week.
- Your income should be paid directly into your bank account either daily, weekly, or monthly.
- You should not be self-employed although some lenders may make an exception.
- If you have bad credit, you need to show that your current financial situation is stable and reliable.
Why Is My Payday Loan Rejected by a Direct Lender?
If your payday loan application gets rejected, this could be for a number of reasons:
- You may have too many outstanding loans and debts. To get approved for a payday loan you need to show that you have the ability to repay it on time, and also cover your other regular expenses. If you have other loans already, this could be difficult.
- You are unemployed with all your income from Centrelink benefits. If 50% or more of your income comes from Centrelink, then the loan repayments (including any unpaid loans) can't exceed 20% of your total income, which is set by the Australian Securities and Investments Commission (ASIC).
- Your job pays you in cash, not direct to a bank account. This makes it difficult for lenders to verify your income, which is usually done by checking your bank statements. If lenders cannot verify borrowers' income, they will not approve their loans.
- You fail to meet the minimum requirements. Eligibility criteria vary among lenders. Before applying for a loan you need to check whether you can qualify, so you don't waste your time.