Looking for an online payday loan, you need to make sure you get it from a trusted payday lender. Online payday lenders are usually divided into three main categories;
Online payday lenders: These are the lenders that provide you payday loans online without any third party involved.
Advantages: Direct lenders are usually cheaper, and reputable and trusted lenders respect your privacy and don't sell your personal information to any other party unless they are unable to approve your loan application and pass it to another lender and that is only with your permission. Also they usually don't check your credit and if you pay back on time, you won't have to worry about the transaction ever being on your credit.
Disadvantage: Some of these lenders have restrict qualification requirement so you may not approve for the loan or the you may get approved for lesser amount.
Banks\Credit Unions: These are financial institutions that offer payday loans along with other type of loans.
Advantages: They could be cheaper than direct lender and even give you more money that you need. Also they never pass your information to anyone or third party.
Disadvantages: They check your credit, and if you get approve you, they will report it to your credit so the amount of loan you taken will add to your debt to income ration. Also they have less tolerance to work with you if you are late on your payment and will report all late payments to credit bureaus which will hurt your credit.
Affiliates\Brokers: These are the online sources that claim to offer you payday loans but they don't really offer you payday loans directly, they simply pass your information to other lenders.
Advantages: You can get several pre-approved offers from various lenders with the amount of loan you are looking for.
Disadvantages: Since they pass your information to various lenders, your information could be exposed malicious third party.
So when you're looking for a payday loan online, we recommend you examine all your options and work with a reputable online lender.