It is strange that many people think that 100 Day Loans is a direct lender of payday loans. It could be because of the name and the branding of the company.
By the name it looks like 100 day loans is a company that offers loans directly to consumers for 100 days. But the fact is it is not. Neither 100 day loans is a direct lender nor does it have the ability to give a loan for 100 days. Yes they can definitely help you get a rollover or an extension on your loan, but that may not be for 100 days.
Now the question is what exactly is a direct lender?
A direct lender is someone or a company that offers loan to customers from their own financial resources. Since they offer the loan themselves the profits and the losses if any are 100% their own.
Payday loan brokers on the other hand are people who market these loans on behalf of some payday lender and if there is any sale that is generated, they keep a part of the profits as their commission.
They are not involved with the other part of the business that is loan disbursals, fees, interest rates, payday loan laws, debt collection, after sales service, loan closure etc. All this is taken care of by the direct lenders.
Many people looking for payday loans in the US actually look for a direct lender. They do this thinking that the direct payday lenders will be cheaper than the payday loan brokers since there are no commissions involved.
This may not be entirely true as if the loan rate does not reflect the market loan rates it may not be sustainable for that business to survive. Yes its true that payday lenders rates may differ from lender to lender but that does not depend on whether they are a direct lender or not. More often than not it actually depends on the person who is applying for the loan.
If someone is too risky to offer a loan, the lenders charge more. And if someone has a great history with payday loans the lenders are willing to lower their rates.
If you are looking for a direct lender to get a payday loan, you are actually wasting your time. Just look at the finance fee offered to you for the loan; don’t look at who is offering it.
A direct lender may offer you very high loan rate, whereas a broker may offer you competitive rates. Well it may be vice versa also, but it has nothing to do with the status of the lender.
Thank you for visiting our website. Hope we helped you get a loan.