subject: The Advantages And Disadvantages To Using A Payday Loans Broker [print this page] Payday Loans are short term cash advance typically lasting for a period of between 1 and 45 days. These types of loans are an alternative to other forms of consumer credit like bank overdrafts, credit cards or personal loans. The main difference between a payday loan and other forms of consumer credit isnt so much charges but rather the length or duration of the loan while a personal loan may last years and years, a payday loan typically lasts only until your next payday. You can secure payday loans up to a value of 1,500 however how much you can borrow depends solely on your status as a borrower, your previous credit history and also how much reputation you have with a particular lender (you can increase the power of your reputation by lending from a particular company more frequently, this will generally entitle you to borrow more).
Payday Loans Brokers typically amalgamate all the offerings from well established payday lenders all on one site and then make money through offering these loan products to customers or visitors on their website. Payday Brokers sometimes use what is called a ping tree system this system allows borrowers the opportunity to send one payday loan application to multiple lenders all through one payday loan application form. The first lender to accept the application will be granted the lead and the payday loan application will continue being sent through the system until one lender picks it up.
Payday Brokers are useful in the respect they maximise the possibility that you will be accepted for a payday loan. It works almost like the law of averages, the more payday loan companies to which you apply then the higher the likelihood that your payday loan application will be accepted. However, you should always keep in mind that there are no guarantees when it comes to payday lending in some cases borrowers just wont be viable for a loan and instances such as these the applicants application will not be picked up by a lender. The main disadvantage to using payday loan brokers is the possibility that you end up with a lender where you dont have a full idea on everything thats being charged prior to signing a payday loan application you should always ensure you have read the terms and condition on a lenders website.
by: Mark Jang
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