Want to Get a Guaranteed Payday Loan from your Direct Lender? Here Are Our Top 5 Picks

Chang Fu
June 12, 2020

Guaranteed Payday Loan Direct Lenders That Provide Approval 

Guaranteed approval payday loans from direct lenders sound like a mouthful doesn’t it? First, let’s break the phrase down, and then we’ll go over options, recommendations, and the finer details.

What’s a payday loan? A payday loan is a small unsecured short term loan that’s usually paid back on your next payday. These loans usually have a high interest rate, calculated in terms of an annual percentage rate (APR) but can be easier to apply and qualify for as well as fast to fund.

What’s a direct lender? A direct lender is a bank, credit union, payday lender, or other financial company that directly lends out money to a consumer. Unfortunately, there are a lot of 3rd party websites and lenders that don’t offer loans themselves - instead, they act as the middle man. There are pros and cons of working with a direct lender and we’ll take you through them later in our article.

What does it mean when an instant payday loan has guaranteed approval? It means you’ll definitely receive approval! However, there’s a catch. Very few things in life are 100% guaranteed and a payday loan is certainly no exception, no matter what marketing or advertising you see. Even if an instant payday loan is easy to qualify for and doesn’t require a credit check, it doesn’t mean you’ll be approved at 100% certainty. After all, many payday lenders and other financial institutions require some sort of income, require identification, and have other approval requirements. Don’t fall for the often-used ad trap of “guaranteed approval”!

Best direct lenders for a simple-to-qualify online payday loan or alternative

So let’s cut to the chase - who is the best payday loan direct lender that perhaps are not guaranteed, but you have a better chance to qualify for? Here are our top 5 picks:

Possible Finance

We’d be remiss if we didn’t mention ourselves. Although we’re not a traditional payday loan and we don’t guarantee approval, we are a direct lender and we believe we’re the best payday loan alternative out there. Borrow up to $500 in minutes with bad or no credit, and repay back in installments while building credit history. You can apply quickly on your mobile phone and get money anytime such as laying in bed on a Sunday night. Repayment is done in monthly payment installments over several months so you get the chance to catch your breath. The best part? Possible reports to all 3 major credit bureaus - TransUnion, Equifax, and Experian, allowing you to rebuild your credit and improve our financial health. You can download the Possible Finance app on the iTunes or Google Play Store.

Payday Loan Alternative

A payday loan alternative or PAL is offered by many credit unions to their members. It’s a lower APR installment loan that’s meant as an alternative to traditional payday loans. In many cases, the annual percentage rate of interest (APR) is lower than 36%. However, these are more difficult to qualify for than traditional payday loans so the approval is certainly not guaranteed. The credit union is a direct lender though and you’ll be dealing with a financial institution eager to get you on the right financial track. Get in touch with your local credit union to see if they offer a payday loan alternative (PAL).

LendUp

LendUp is an online payday lender and financial institution that offers payday loans with easier approval. Applicants will need ID and a bank account, and not much else. However, the approvals are not guaranteed, even if advertising may say something different. In many cases, LendUp will do a credit check with an alternative credit bureau via a soft pull. It won’t impact your credit score but they’ll still run a credit check. You can be denied for multiple reasons including lack of income and other things.

CashNetUSA

This traditional payday lender first began business in 2004 and offers payday loans, installment loans, and line-of-credit products. You can visit their in-person stores or apply online or through their mobile app to get a payday loan. They’re a direct lender in the states they operate in but as with everyone else, there’s no “guaranteed” approval. Like most traditional payday lenders, to apply, you’ll need an ID, a pay stub, usually a bank account to deposit your funds and to pay your loan off.

MoneyTree

MoneyTree is another traditional payday loan direct lender that’s based in Seattle and mostly operates in the Northwest. The payday lender offers payday loans that are similar to those of CashNetUSA. Like CashNetUSA, there’s no guaranteed approval and they operate as a direct lender in the states they’re in. You’ll need an ID, a pay stub, and a bank account to apply and you can choose to receive the money on the spot or in your bank account or on your debit card.

Direct payday loan lenders vs 3rd party lenders

What’s the difference between a direct lender and a 3rd party lender? A direct lender is the lender of the loan to a consumer. When you apply on their website or mobile app such as with Possible Finance, they evaluate your application, approve you, and disburse the funds directly to you.

In contrast, if you apply for a loan on a 3rd party lender website or app, they’ll redirect you or sell your information to multiple other direct lenders or 3rd party websites. You’ll likely be contacted via email, text message, and phone with offers from multiple direct lenders and other 3rd party websites. In addition, the data on your application may be sold to data providers and lenders.

Sometimes, it’s difficult to tell whether you’re working with a 3rd party lender. Be sure to read the fine print on the website, especially on any loan agreement or disclosures you’re acknowledging or accepting. You can also check out the Terms & Conditions and Privacy agreements on the website. By doing your own thorough research, you should be able to discover whether the company is a direct lender or a 3rd party.

What are the pros and cons of a direct lender? One con of a direct lender is they’ll usually only have one price for a loan structure ie. payday loan. You won’t be able to easily compare prices, although you can visit websites of multiple payday loan lenders and apps. There are many benefits of working with a direct lender rather than a 3rd party. You’ll receive fewer spam calls or messages - by working with a direct lender, you’ll know exactly who it is that is contacting you and it’s easy to opt out. If you work with a 3rd party lender, your information may be sold to multiple places and you’ll have many random numbers and emails vying for your attention. In addition, 3rd party websites and apps can be less secure and less legitimate. Most direct lenders like LendUp, Possible Finance, CashNetUSA, and others have hundreds if not thousands of reviews online. They have Better Business Bureau profiles and other places where you can complain. You’ll be able to find them on the NMLS Consumer Access site.

Why approval is never guaranteed

Online payday loan approval is never 100% guaranteed and there are a few reasons you can get rejected no matter which direct lender you work with:

  • No detectable income - without income, there’s little to no chance you’ll repay back an unsecured loan
  • No form of identification - without knowing who you are, it’s unlikely a payday lender or bank will give out money
  • No bank account or account (optional) - many payday lenders require a bank account to debit card to disburse funds and collect payment but not all. If you want a cash disbursement and to repay back in cash, a few brick and mortar payday lenders can help like MoneyTree and CashNetUSA.

Is it ok to have a bad or no credit score?

The benefit of many payday loans from direct lenders is there’s no credit check just like many other no credit check online loans. It doesn’t matter how low your credit score is or how many times you’ve failed to repay your credit card or other loans. None of that might matter with a payday loan if no credit check is conducted.

However, some payday lenders do a credit check and have a minimum credit score. They may require a minimum 600 credit score or check credit data with alternative credit bureaus such as Clarity Services.

Possible Finance doesn’t care about your credit score - in fact, many of Possible’s customers have a 500 credit score or below. This allows our customers to rebuild their credit through our installment loan and improve their financial health so they can qualify for cheaper loans and credit products over time.

How quickly can I get the money?

The speed in which you can get your money from a payday loan lender or payday loan alternative lender will vary. In most cases, there are 3 ways you can get the money disbursed to you:

Cash. Some brick and mortar payday lenders such as MoneyTree can give you cash bills once you’re approved for a payday loan. Getting approved for a cash disbursement may have additional requirements.

Debit Card. Many payday loan direct lenders allow for debit card disbursements. The advantage of getting your loan on a debit card is it can be funded in just a few minutes. However, some payday lenders limit debit card disbursements to a specific debit card they support - this can be quite limiting and costly because the debit card option available may not be a good debit card compared to other market options. In contrast, Possible Finance allows most Visa or Mastercard debit cards.

Bank account ACH. The most common option, funds disbursed via ACH to an eligible bank account can take 1-2 business days. Because this is slower than other options, many borrowers prefer debit cards or cash instead. Every lender will usually have this option though so if you don’t need the funds on the same-day, you can pick this option.

What to look for in a direct payday loan lender

So how do you decide which direct lender to get a payday loan from? First, do your research:

  1. Compare APRs and overall fees. Make sure there are no hidden fees such as rescheduling and other fees
  2. Read reviews for each lender and check out other people’s experiences
  3. Understand the qualification requirements and the disbursement options
  4. Don’t be afraid to ask questions!

Once you’ve done your research, you can determine the payday loan direct lender that’s best for you. In addition, as long as there’s no hard credit inquiry or alternative credit inquiry, don’t be afraid to apply to multiple lenders. Your preferred lender might not approve you but your backup might approve you!

Phone, online, or in-person?

Lastly, should you apply on your mobile phone, online, or in-person at a brick and mortar payday loan store? That’s your choice and your preference! With the rise of different online direct lender companies and services as well as mobile apps, you can do everything in the comfort of your home with a trusted brand like Possible Finance, CashNetUSA, and others. There’s little difference in the application and the security so just do your own research and choose your preferred method of applying and getting the loan. Just know that if you apply through your phone or online, you’ll need to choose ACH or debit card disbursement. There’s no way for you to get cash if you’re snuggled up in your bed when you’re applying!

Chang Fu

Chang is an avid writer, among other things, at Possible. He grew up loving reading and writing, creating his own poems and even a book he's now hidden in an old closet, unpublished. His financial experience at a large bank along with his passion for technology to help underserved communities inspires him to write for Possible.

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