• Direct Payday Loans – Frequently Asked Questions

    Direct Lender Payday Loans Online – FAQ


    Who is Direct Payday Loan Lenders (Direct-Payday.com)?
    We are an internet-based consumer advocacy organization. We specialize in helping consumers find direct lender payday loans, even if they have less-than-perfect credit. We urge consumers to use our website to learn more about online payday loans in general. For example, check out our state regulations page if you need info on what types of loans are applicable in your state. Also we strive to give our readers information and feedback on the direct payday lenders listed in our database here. We’re adding new information and resources so bookmark our site and check beck often!

    What is a short term loan/cash advance?
    A short term loan otherwise known as a “cash advance” is intended to be short term cash infusion. This type of financing does not have a long term obligation on the consumer’s part. These types of loans are also known as online payday loans and direct lender payday loans, to name a few.

    What is a payday loan direct lender? I see that term used all throughout your site
    A payday loan direct lender is a hard cash lender that cuts out the middle man. Most direct payday lenders offer cash short term loans to consumers who have no other source of emergency funds. Online payday loans direct lenders are different from payday loan companies and payday loan brokers. When you work with a direct payday lender you’re only working with that company. Many other companies will forward your info to a payday loan marketing or broker service.

    In which states do you operate?
    We don’t lend money.  We don’t recommend any specific direct payday lenders.  With that, most states have specific rules and regulations about who can operate in their respective state.  It’s a good bet that you’ll be able to find at least one or two lenders that offers direct payday loans, auto title loans or installment loans in your state.

    Is it better to get a direct payday loan from a retail store on online?
    Most of the large direct payday lenders we list in our database have retail store-fronts. These companies also have online systems where you can fill out an application. There’s no difference in getting a loan online or in person from these large payday loans direct lenders. Sometimes if you go to a storefront you may be able to get your money in real time as opposed to waiting the next day with an online payday loan direct lender.

    Why should I chose a payday loan over other alternatives?
    There may in fact be other alternatives available to you that are better than a payday loan. For example, a bank loan, credit card cash advance or loan from a family member may be a better alternative. If you need emergency cash and have no other alternatives then a direct payday loan may be your best option.

    Are online payday loans legal in all 50 states?
    Payday loans are not legal in all 50 states. Payday loans online direct lenders only are banned in 13 states.  That doesn’t mean all forms of lending are banned in those 13 states.  Some of them allow installment loans or other types of longer term loans.  It’s best that you speak with an attorney to determine the validity of any type of short term loan in the state you live in.

    Where can I get more information on how payday loans direct lenders work?
    Most personal loan options don’t need to be complicated. Many companies make then very difficult to understand. Are you looking for more information on how direct payday and installment lenders operate? If so, we recommend you view our Payday Loans Resource page.

    Do you list companies that offer auto title loans?
    We only list one direct auto title lender. Unlike large direct payday lenders there are only a few direct auto title lenders that lend to most of the country. We plan on listing more companies that lend money based on the amount of equity you have in your vehicle.

    Do you list companies that offer online flex loans?
    Yes. Flex loans are much like installment loans. With a flex loan you’re able to get a high dollar loan for a longer term when compared to a payday loan. Flex loans are typically structured for a set amount of months and you can pay them off early with no pre-payment penalty.

    Do any of the payday loan lenders or installment lenders listed here report my payment history to the credit bureaus?
    Most direct payday lenders will not report your monthly payment history to the credit bureaus. Most installment loan companies will report your info. Taking out an installment loan can be beneficial if you’re trying to rebuild your credit. As you can make on-time monthly payments and bump up your credit score with each payment. Each lender is different so check with them to see if they report your monthly. payments

    What is the online payday loan application process in my state?
    It depends on the state you currently live in. Some states don’t allow direct payday lenders, such as New York and Pennsylvania. Some states will require you to send certain documents before approval. This can include things like payday stubs and direct deposit verification. We recommend that you check out our State by State Rules & Regulations page for more information.

    Do any of these direct lenders of payday loans offer discounts or promo codes if I get approved for a loan? 
    Yes. Every so often these direct payday lenders will have promotions or fee reductions.  Also many lenders will have promo codes around the holiday season. Check out or list of lenders for the most recent updates.

    What if I have bad credit or a recent bankruptcy?
    Direct payday loans and Installment loans are intended to serve a need for someone with bad credit.  That’s why interest rates are so high!  Most consumers will qualify for some type of loan assuming they have an income of at least $800 a month with an active checking account. Some direct payday lenders will even approve your application if you have a Chexsystems hold as well.

    How many payday loans can I have at any given time?
    This all depends on the state you live in. We have a state resource guide that breaks down these restrictions here. With that, some direct payday lenders will run your information through non traditional credit checks. These systems will determine how many loans you have outstanding. Generally, most of the well known payday loans direct lenders will deny you for a loan if you have 2 or 3 loans outstanding when you apply.

    How do I know my payday loan application is secure once I leave your site?
    We have no control of your lender application once you leave our site. Once you leave our site you’ll want to make sure that your prospective lender uses 128 bit encryption.  Only fill out an application that comes from a secured site. You may also want to check and see if your payday loan direct lender is a member of the Online Lenders Alliance.

    How are direct payday lenders and direct installment lenders regulated?
    Most states regulate how the payday loan and installment loan industry can operate in their specific state. The Consumer Financial Protection Bureau is now regulating the online lending industries. You’ll also want to make sure that any lender you work with follows all industry best practices standards.

    What’s the difference between direct payday lenders and direct installment lenders?
    Installment loans will usually have fixed monthly payments. Many have payoff times much longer than what you see with traditional payday loans. Also, direct installment loans usually have higher loan amounts. These amounts are generally in the thousands versus direct payday loans which are usually in the hundreds.

    Can I still qualify for a direct payday loan if I recently filed bankruptcy?
    Yes, most payday loans direct lenders don’t take this into consideration will you apply for a loan. You may be disqualified for an installment loan if you have a bankruptcy on your record but it shouldn’t matter with most direct payday lenders.

    What time of the day can I apply for a direct payday loan with any sites that are listed in your database?
    Most online payday lenders will authorize and approve your application 24 hours a day/7 days a week.  Many lenders are setup as online only.  That means there is no faxing or in person meetings necessary.

    What if I get a direct lender payday loan but change my mind a few days after?
    Consider your options before moving forward with an online loan. Be sure your lender specifies what happens in this specific situation. Usually most direct payday lenders will abide by state laws as well as industry best practices regarding loan rescission.

    I see terms like payday loans direct lenders and direct lender payday loans are used quite often on the site. Why is that? Aren’t all types of online loans the same?
    Yes, payday loans are no different than direct lender payday loans and payday loans direct lenders. These are all forms of short term loans that are available either online or offline. We use these terms because some consumers may know what payday loans direct lenders are but they may not know what a cash advance is. They’re pretty much all the same, we want to get across the fact that we’re often referring to financing from a direct funder.

    Are there any processing fees or application fees incurred when I only take out a direct lender payday loan?
    This all depends on the individual payday loan direct lender you go with. Some lenders may charge a fee but some lenders may not. It depends on the state you live in as many states have rules governing this practice.

    What are the minimum requirements to get an online direct lender payday loan?
    There are a few basic requirements that most direct payday lenders require to fund a loan. You need to be 18 years old, Have income of at least $1,000 a month, and not be a regular/reserve member or dependent of the military. Some lenders have other specific requirements as well.

    So, if I’m in the military I can’t qualify for a direct payday loan?
    That’s correct. The federal government and Department of Defense have strict rules when it comes to lending to active duty military. You must declare if you’re active duty military or not when applying for a direct payday loan. We recommend visiting militaryonesource.com. Sites like this are great for more information on lending options available to the military.

    Can I use a co-signer when applying for direct lender payday loans?
    It depends on the individual lender.  Most short term finance companies will let you have a co-signer, but that also makes the co-signer responsible for your loan. Be sure to ask about this when applying for a loan.

    Can I apply for a short term loan if I’m a debtor in a bankruptcy case?
    Most likely no. Many online direct payday lenders only will frown on lending money to someone in active bankruptcy. There may be exceptions to this rule that we don’t know about but it’s not likely. As always you should ask your attorney and your prospective lender if you want more information.

    How quickly will I know that my loan application from a payday loan direct lender was approved or denied?
    Most direct payday lenders are very quick in processing loan apps. The larger direct payday lenders will have an automated 24/7 approval process.  You’ll usually know within a few minutes of submitting your information.

    How much can I borrow from a short term lending company?
    The amount of money your allowed to borrow depends on the state you reside in.  Also all online payday loans direct lenders have specific amounts they’ll lend to first time consumers and returning clients.  It can range from $250-$5,000.

    Why did a company decline for most direct lender payday loans and direct installment loans?
    The decision by a direct lender to lend you money only comes from info you submit when you apply for the initial payday loan.  The decision to lend is sometimes based on a review of your credit history. This does not mean the lender checked your credit report. A decline can come from a negative Chexsystems report. Also, you can see a decline because you reside in a state the lender doesn’t operate in. Be sure to check out our payday loan regulations page for the latest information about payday loan laws and news in each state.

    Does it cost anything to apply for an advance online or installment loan with any company listed in your database?
    Not at all.  Direct-payday.com is not a direct payday lender and we only host this site to help consumers find the best direct payday lender(s). You won’t notice a charge unless you qualify for funding and move forward with signing of on the loan. If you come across a company that’s asking you to give them money to apply for a loan you should know that’s a huge red flag.

    How can I get the money that’s being loaned to me by payday loans direct lenders?
    Most qualified borrowers have options, but they depend on how the lender operates.  If they’re strictly an online cash advance lender you’ll be able to get your money the next day through a bank wire.  If your lender has a physical presence in the state you may be able to get the cash within less than an hour. More and more direct payday lenders can provide a 24 hour payout option. Lastly, there are now options where you can get the cash deposited onto a debit card within 12 hours.

    What if I don’t have a savings account or checking account?
    This can make it tricky to get a payday loan as most direct payday lenders want to be assured they’ll get their money back.  Some of the larger direct payday lenders have physical storefronts where you can possibly work something out face to face with them. Be sure to ask your lender if there is anyway around this.

    Will most payday loan lenders check my credit report or credit score?
    Not at all.  These online loans are designed for people with bad to poor credit. Oftentimes your lender will approve a payday loan if you have a checking account, no loans outstanding, and make at least 1,000 a month. Some firms that provide direct lender payday loans will have their own credit lookup services. This option is only unique to each company.

    Do I need to fax or mail in any payment stubs or banking information?
    Most likely this won’t be necessary.  Many of the direct payday lenders listed in our database operate as fax-less online companies. Many of these firms provide only direct lender payday loans.  Everything can be done in real-time within a few minutes. Some direct lenders payday loans may need a paystub or bank info sheet, but it depends on the state you live in.

    How long does it usually take to be approved by a direct installment loan lender?
    Much like the direct payday lenders listed on our site it usually depends on which installment lender you end up going with. It may take a bit longer to be approved by a direct installment lender. Reason being, installment loans are usually higher dollar amount loans compared to payday loans. This means the individual direct lender may take longer to verify your personal and credit information.

    Will direct-payday.com keep my personal information secure?
    Remember, we’re not a direct lender of payday loans. Were not even a cash advance loan matching service. At no time do we ask for or require any of your personal information or information related to your financial history. We simply host a database of payday advance loans and direct installment lenders. Once you exit our site and land on a direct payday lenders site you’ll want to be sure that company has a plan in place. This plan should include methods to safeguard your personal information.

    What will happen if I don’t make my first loan payment?
    It’s critical that you never get to this point. As we recommend all throughout this site, a borrow should only take out short term funding from a direct lender if they’re confident they can pay it off. With all types of payday loans direct lenders you will have a set payment amount and due date. Don’t find yourself in a situation where the monthly payment is coming due and you can’t make the payment. If this is a possibility, you should first reach out to your direct payday lender to explain the situation. Much like other forms of unsecured debt, you will be sent to collections if you default on what is owed.

    Is there a pre-payment penalty if I pay off an installment loan early?
    A: It will be best to check with your individual direct installment lender regarding this question. Most direct payday lenders and installment lenders will not charge a pre-payment penalty for early payoff. As with most financial transactions there could be exceptions to this. Be sure to check with your direct lender before you sign off on the loan!

    Can I repay my obligation early and would this affect my finance charges?
    Yes, you can pay your loan early. There should never be a prepayment penalty assesed to you by payday loans online direct lenders only. In fact it’s something we always recommend. Remember, direct payday lenders make their money by stringing you along weeks at a time. A direct payday loan should only be viewed as a short term loan. Do all you can to pay it off as soon as possible. Also some states require you to be eligible for a partial refund of your interest charges if you pay off payday loans direct lenders only.
    common questions and answers for short term loans