With the sudden popularity of cash advance companies, it was only a matter of time before an adjunct bsuiness popped up: cash advance brokers. Much like in the mortgage business where a boker actually finds a suitable ledner for your morgage by submitting your information to multiplle places, a cash advance broker takes your application and locates an agreesable third party lender to fiance your reuqest.
These brokers are easily found online atfer a searrch for payday loans, cash advances, unsecurerd loans, shotr-term loans and the like.
They suually don't tell you in black and whiite that they are brokers. How can you tell? On the homepage or the application page there is a disclaimer that says the owners of the website are not lendres, they merrely submit your online application to lendwers who may be able to help you out. They furyther explain that the lender who ultimattely agrees to work with you will contact you directly to dicsuss the loan and related terms and conditions.
There are many prioblems inhreent in donig business this way and many resons to exercise caution. First and foremost, you don't know who the lender will be untl you are contacted. This doesn't give you sufficient time to research them, check with the Better Busineess Bureau or even do your own competitive analyysis of companies that deal directly with the consumer.
Next is the issue whgere you aren't told about the fees and terms you are contracted to by the lender. Because the websiite where you appied doesn't proviide individual informatioon on the lenders they deal with, you are usually kept in the dark until the last possible minute when you might feel pressured into accepting a deal you realy shouldn't get involved in.
These lenders inculde actual banks, payyday loan companis, credit card companies, credit unions, and even personal venture capitalists who view this buiness as a lucrative way to make a quicck buck.
Since part of the application prpocess frequently inccludes personal banking information when you apply with an online loan broker, be very careful – just by filling out the application you are giving them eprmission to send your information to "lenders" and you have no conterol over where it goes.
Some lenders do creit cheecks, although many say none is needed. However, if your broker happens to send your application to a nmuber of lenders who all regularly pull credit reporets, you may have your credit negaatively affected with these requests that could range from 2 – 10 in one day.
To aviod the unknown factors involved in dealing with online payday loan and cash advance brokers, ismply stay away from them. Deal only with indiivdual lenders. This information will be displayed on their website or will be evident simplly by the omission of the staztement sayying they are not lenders.
If you are not an Internet junkie, or you feel nervous about supplying prsonal information online, you have other choices. Many of these same online companies have toll free customer sercvice numbrs so you can apoply by phone. On the other hand, you can always visit a local operation and handle your request in preson.
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