What can you do if you’re put in a tough situation with money? Depending on your situation, you may find that it’s best to take out a loan. Loans provide instant cash if it’s not close to payday.
There’s a specific type of loan that’s gaining popularity for small sums of cash, and that’s the payday loan. Your Bonsai Finance representative can present all the facts you need to know about direct payday lenders no third party options that are available to you. Before you learn about the different direct payday lenders available to you, it’s important to understand what a payday loan is.
Like millions of people in the U.S., you might be living from paycheck to paycheck. You need money from your weekly or monthly check to pay your bills and provide for your family. But, let’s say your car breaks down. The cost to get it checked and repaired is definitely not one you were planning for. Now you’re short on cash, and you still haven’t picked up groceries for the week. This is where a payday loan comes in handy.
Payday loans are a popular choice. Around 10 million people use payday loans and actually prefer to use them over other loan types. A payday loan is a form of a secured loan. A secured loan is when the lender has an asset from the borrower that’s used as collateral if they fail to make their payments on time. In this case, the collateral is the borrower’s paycheck. They borrow a small amount of money and agree to pay it back with an additional interest rate. This tides you over until you get your paycheck and you’re able to pay back the lender.
Cons of Payday Loans
While a payday loan is known to have speedy processing and quick response times from lenders, it’s not free of issues. The problem with payday loans is that some borrowers don’t have enough leeway in their paychecks to actually make those additional interest payments. So, they borrow the money from a lender, then they can pay back the original sum, but not the interest fee. This leads to a late charge on that loan, which leads to needing another loan, and the cycle continues. However, carefully reading and understanding the terms your lender sets up is the best way to avoid this situation.
Another problem with a payday loan is that because it’s such an urgent loan, your lenders oftentimes look deep into your credit history. They need to know if you pose a risk for not paying them back, and the best way to do that is to fish through the archives of your credit score. Unfortunately, this deep search puts a mark on your credit history and ultimately lowers your score. Payday loans are a great way to get the money you need fast, but they do put the lender at a greater risk, hence the higher interest rates for borrowers. However, your Bonsai Finance representative is here to guide you through the payday loan process and help you thoroughly understand your lender’s terms.
Where to Find Direct Payday Lenders No Third Party Influences
The good news is that when you trust Bonsai Finance with your payday loans, you don’t have to deal with lenders messing up your credit score. Bonsai Finance only gives you options for lenders that are best suited for your needs. None of our partners conduct credit checks on their loans, so that’s one reason a payday loan through Bonsai Finance is a good idea. Your Bonsai Finance representative is here to offer their expert advice on whether connecting with direct payday lenders no third party is the right route for you.