Best Payday Loans 2020: Independent Direct Payday Lenders

How to Choose the Best Payday Loans?

To search for the best payday loans, you have to consider essential factors to get a reliable company that can give you good terms.Finding the best payday loans
is not easy with many payday lenders claiming they have the best offers. It’s important to identify the best key points of a good payday loan when choosing one.

Some kind of customer relation service is offered by direct payday loans where every borrower is given the chance to talk to the lender and negotiate with him. The lenders do not want to transact loans in a hurry. It must be a well-considered decision even if the process of payment is short.

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Every payday loan provider must give you the following details:

    • best payday loansLicense
      You have to be given the reassurance that the payday loan company you have chosen is legitimate and duly licensed to operate business in your state. A legitimate company is listed with the Better Business Bureau or contact the office of the Attorney General in your state for information.
    • Interest Rates
      Lenders with their payday loans make it easy everyone to use their kind of financing. Many even offer one-hour loan processing. Always be careful and check the interest rates because exorbitant fees are charged by many lenders.
    • Terms
      Consider the terms and conditions of the payday loan. Payday loans are due anytime between 15 and 90 days. The payment period depends on your capacity to pay. Secure quotations from several lenders to compare which payday loan company is the best deal.


Payday loans are a way out of urgent financial issues. While you can find loans at a brick and mortar store, why not consider using online payday lenders or direct online lenders to enjoy an efficient and access safe loans? Essentially, you will get a loan from the lender with just a minor check on your credit history.

Banks, being conventional lending institutions as well as others will undertake a very stringent and strict check on your credit scores before they approve any loans. One benefit of payday loan is that the entire amount of the loan is directly transferred into your account after it’s been approved.

Best payday loans for you

Payday loans offer the best chances for people to have a good way to manage their financial crisis before the arrival of the next paycheck. Payday loans are due to be paid to the borrower’s next payday and the lender has the right to deduct the amount from the borrower’s checking account.

Payday borrowers are required to have the following:

  • National ID or passport, checking account and proof of income.
  •  Request an online payday loan in the comfort of your own home. Depending on where you reside, you can ask from $100- $1000. If you are a borrower for the first time, you will not qualify for the
    maximum amount. You have to build good relationship and trust with the lender first.
  • You will have to show that you can repay the loan by its due date.
  • Sometimes, the lenders assess the income of the borrower, his expenses and borrowing history before the loan is given. You do not need to have a good credit score or be in excellent credit standing to request for a payday loan. Your best payday loans are those which you are able to repay on time.

Criteria for choosing a payday lender

You should conduct thorough research on the lender. Many companies claim to give you instant long or short term loans. You should be aware of additional fees and other charges. When choosing a lending company, take time to consider late payment penalty fees, rate of interest, its lending policies and other measures.

Payday lenders do not require the borrower to have exceptional credit scores. Once all your documents are submitted to the loan company, they will check and make an assessment. After it is approved, they will give you the loan.

Payday loans are governed by rules and regulations as it is in every state and you should familiarize yourself with them before you choose a lending company. Search the internet for the online lender of payday loans.

What to look for

    1. Find a clear and well-presented site. With wrong spelling and poor grammar, this payday website may not be legitimate.
    2. Ensure you can see that the lender is ‘authorized and regulated by the Financial Conduct Authority’ – this will usually appear in the footer of the website’s homepage. There should be a firm reference number too.
    3. Look for a business name (and/or trading name), telephone and postal address.
    4. If the site gives you some kind of loan cost calculator for payday loans, it should also show a representative example, which will give you information on a representative payday loan, including how much you would repay in total and the cost of credit.
    5. Search for a connection to a payday loan lender website as Good Practice Customer Charter on payday loan lender websites.
    6. Be sure to read the privacy policy and/or data protection policy.

Important considerations

Opt for a lender affiliated with larger institutions. Lenders who are involved in all types of loans are more credible than small, unknown or fly-by-night companies.

Even national lending institutions or some statewide business have joined the small loan market known as “payday loans” These lenders are following legal lending practices compared with the small, independent lenders who may have just started operating their personal loans shop in a street corner.

Check the lender’s license. Almost all the states in America and the District of Columbia have enacted legislation permitting payday lenders to operate. Legal measures require all lenders to acquire licenses to operate loans in the state.

With a license, it is an indicator that the lender has undertaken state examination and generally has been following approved business practices. Every time you apply for installment loans from a payday lender, you should have their license number.

To verify the license number or other matters, contact the office of the Attorney General of your state.

Be careful of incentives. To make their payday
loan amounts appear positive, some lenders add certain incentives to borrow.

They gave out limited credit card and checks or offer easy borrowing terms. These are all good things for loan applicants. However, this is a bad indicator that the lender is not practicing sound lending procedures.

These incentives are in your favor and you are sure to repay the loan when initially due. However, if you have any problems with unexpected expenses during repayment time, the lender’s business practices may become more of an issue for you.

Beware of taking out multiple loans. In some states in the U.S., the law only allows for a certain number of short-term loans. To be exempted from following these laws, lenders will divide a large title loan into multiple but smaller loans without exceeding the limited amount.

This way, they can still charge fees or set due dates on these amounts. Your red flag should be alerted if your lender advises you to create two or more loans out of one you were applying for.

Stay away from lenders using Native American lands. Some payday lenders set up their business on lands recognized as home to Native American tribes.

These lands are exempted from state and federal regulations. By doing this, the lenders can issue cash advance loans without adhering to consumer protection laws.

Examining the terms of the loan

    1. Ask for a clear loan statement. –According to the requirements of TILA, the Federal Truth in Lending Act, all money lenders must provide borrowers with a written statement stating every important loan terms. Borrowers should get a written statement that itemizes the amount of the loan, the repayment date, and annual percentage rate (APR). If you are not provided by the lender who are working with such a statement, you should be alerted. A lender who is unwilling to provide financial services information may not be reputable.
    1. Secure a written and signed agreement. – As stated, any loan, including short-term loans should be incorporated into a written loan agreement. Prior to signing anything and accepting any money, you should thoroughly read the agreement and ask questions about any terms you do not understand. The loan agreement should clearly state the following information:
      •  Loans principal amount
      • Due date of payment
      •  Amount of any interest applicable
      •  Equivalent APR of any interest rate or finance charge
      •  Penalties or consequences of late payment
      • The right to renew the loan if needed as well as any recurring charges
    1. Examine the interest rate or finance charge. – A typical bank loan or other established lenders will advertise how much their interest rates are. Most payday lenders have no advertisement on their high-interest rates. Instead, they set a low lending fee or “finance charge”. The finance charge is no problem at first, but after evaluation of the calculated interest rate, you may lose interest.
    2. Be careful with automatic financing. – Payday lenders are able to make more money by providing an easy process that sounds too easy. At the end of your first two-week term, if you are unable to make payment, the lender will offer you a refinancing very easily. You only have to pay finance charge from $20 to $50 dollars instead of repaying the loan amount, and the direct lender would allow you to extend the loan for another two weeks.Such service is very helpful and very accommodating, but in reality, the amounts are charging an interest in the range of 300% or more.Many lenders do not even wait for you to request for an extension. If the loan is not repaid on time, the loan is not considered bad credit but automatically extends and the fee is charged. In many cases, part of your loan application gives the lender an access to your bank account so they can withdraw payment directly.If you have found the best payday loan provider, you will be able to escape recycling the refinance of your payday loan. You have to find a method to reduce your living expenses, earn more money, or otherwise try to get the initial loan amount repaid.

best payday loans