If every payday loan and lender were exactly the same, there would never be a need for brokers. However, as you can probably guess, there are some pretty significant differences from one to another, just as there are with the applicants themselves. Therefore, in order to match a borrower with the perfect lender, sometimes you have to look beyond a single company. This is where brokers really are exceptionally useful.
In any situation where you're looking to get the best deal, you have to be prepared to look around and see what is available comparing prices, services and standards. However, whilst this might save money, it will inevitably cost you time. However, should you choose to use a price comparison service or, better still, a brokerage, you can cut out most of the hassle and wasted time, whilst also getting a great deal on your payday loan.
So what's the catch?
Whenever something appears too good to be true, there always seems to be a major catch. However, in the case of payday loan brokers, there really isn't. Whilst you might receive a few emails from lenders, there should be no other form of contact or negative association such as a mark on your credit history.
You will need to be careful though. If you use a broker and they request a cash subsidy upfront, walk away. Whilst they may well be able to help you find a lender, the likelihood is that you will end up paying far too much for a service which is almost universally free. The only charge you should be looking to accept is a small processing fee or arbitrary cost to secure a quick transfer. This should also be incorporated within the quote you receive when applying, therefore providing an opportunity to back out or look elsewhere for a better price.
So as long as you don't part with your cash before you've been accepted for a loan, there is really not a great deal to be worried about. Obviously if you're not entirely happy with the final quote that you're given then there should be no pressure on you to accept this and therefore you will be free to explore other avenues.
How can I get a better deal?
The role of a payday loan broker is to simply bridge the gap between the lender and borrower. As such the onus is really on them to ensure that they deliver good value to both parties. This means that it is imperative that they have a strong list of lenders at their disposal, ready to help applicants from all sorts of financial backgrounds. These will be vetted to ensure that each company offers a professional service and competitive rates. Again, the broker is judged on its ability to deliver better value than anyone else, so if they fail in this mission, customers will simply look elsewhere.
Of course this works both ways. The leading payday loan lenders are far more likely to develop a link with a broker that attracts a large number of applications every day and is also well regarded within the industry. Otherwise their own name might be tarnished simply by association.
Therefore finding a well-established and ethical payday loan broker can often help you to achieve a pain-free and ultra-competitive loan. You will only ever need to fill in your details once, after which you will be provided with a selection of quotes, all of which should be extremely competitive and possibly even better than you could find if searching on your own. Therefore you could end up saving time and money as well as solving any financial predicament within hours.
