When it comes to the different types of online lenders there are several key differences to account for within the market place. Quite often many consumers are not aware of these differences and as such may not end up getting the product they originally had hoped for.

2. What are Direct Payday Lenders

3. When it comes to the different types of online lenders there are several key
differences to account for within the market place. Quite often many consumers are
not aware of these differences and as such may not end up getting the product they
originally had hoped for. Today we will be discussing the different type of lenders
who offer borrowing resources online and how their service can vary. For the
purpose of this article we are specifically referring to the payday loans market
where a small sum of money is borrowed for an agreed period of time. Although
there are several different ranges of borrowing which can be accessed online, the
most commonly used is the payday loans market. These online loans are often now
offered as installment loans instead of the more dated model known as the payday
loan but ultimately these are all terminology for the same type of lending resource
as described.

5. For a consumer who is looking to borrow a small sum of money, there are several
different choice to consider. Some of us may turn to our overdraft as a temporary
measure for covering an unexpected cost, whereas others may use an existing
resource such as a credit card. For consumers who have the ability to borrow a small
sum of money from either their family or friends, this will of course be the cheapest
option. Outside of these options for borrowing a small sum of money there is online
borrowing. As mentioned above the online market for borrowing money comes in
several different shapes and sizes so to speak. This is because there are different
types of lenders who operate within the market place. Take for example the direct
payday lenders. Direct payday lenders are the lenders who offer a borrowing service
in a direct manner and this means an applicant can apply for a sum of money and
the decision as to whether the application is successful or not will come from the
same source. Direct payday lenders, given they make decisions internally will
normally not charge a fee for the service they provide and instead allow consumers
the ability to apply free of charge; regardless of the outcome.

7. As well as direct payday lenders there are also loan brokers who operate
within the online market for borrowing money. Unlike direct payday
lenders a loan broker will not offer the ability to borrow directly and
instead will provide the service of finding and therefore suggesting a
suitable lender. This means the broker does not actually provide a facility
for borrowing and instead offers somewhat of a comparison to be
considered by the applicant. In the case of loan brokers, given their service
uses sources external to their business, there is often a fee for the service
offered. This means when applying through a loan broker, instead of
direct payday lenders, the applicant may have to pay a fee without a loan
being granted. Depending on the needs of the individual it may be that
this type of service is suitable but for those who are ultimately looking to
keep the overall costs down, direct payday lenders are likely better suited.

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