- A direct lender approves, funds and collects the loan itself. Many "direct lender" sites are really lead generators that pass your application on.
- This site is not a lender or a direct lender. Our form sends your request to a network of lenders.
- Federal Truth in Lending rules require the loan disclosure to name the creditor. Check that name against your state’s license list before you sign.
PaydayEase is not a direct lender and does not make loan decisions. Our homepage form passes your request to lenders in a network. If a lender makes you an offer, that lender is your direct lender, and its name, APR and fees are shown before you accept.
Direct lenders, networks and lead generators
| Type of site | What it does | Who sees your details |
|---|---|---|
| Direct lender | Reviews your application, funds the loan and collects repayment | That lender (and the specialty credit bureaus it checks) |
| Lending network or marketplace | Passes one request to lenders in its network, which may make offers | Lenders and partners named in its privacy terms |
| Lead generator | Collects applications and sells them | Whoever buys the lead, which may not be a lender |
Networks can help if one lender has already turned you down, because several lenders see the request. The trade-off is that more companies get your information. A direct lender keeps it to one company, but you start again if it says no. For the bad-credit side of this choice, see direct lender payday loans for bad credit.
Why it matters who gets your application
A payday application holds your Social Security number, bank account and employer. In 2022 the FTC settled with a lead generator that ran loan sites promising to share applications with "trusted lenders". The FTC said 84% of the applications it collected since 2016 went to marketers, debt relief companies and data resellers instead of lenders. The company agreed to a $1.5 million civil penalty.
- Read the privacy terms before you submit. Look for who receives your data and whether it is sold to non-lenders.
- Expect contact. After using any network, you may get calls, texts or emails from lenders. Ignore anyone asking for an upfront fee.
Need $100–$1,000 before payday?
- One free request, many lenders
- Bad credit and benefit income considered by many lenders
- See the APR and total cost before you sign
PaydayEase is not a lender. Requests go to lenders in our network; approval, rates and terms are set by the lender. Rates & fees
How to find out who your lender is
- Read the loan agreement. Under Regulation Z (12 CFR 1026.18), the Truth in Lending disclosure must identify the creditor and show the APR, finance charge, amount financed and total of payments.
- Check the license. Search the lender’s name on NMLS Consumer Access or your state regulator’s site. Your state payday loan page lists the rules where you live; for example, Texas.
- Check where it says it is based. Some online lenders say they are owned by a Native American tribe or are based offshore and claim your state’s rate limits do not apply. In 2017 the CFPB sued four tribal-owned online lenders, alleging they collected on loans with APRs of 440% to 950% that were void under state rate-cap or licensing laws.
- Search complaints in the CFPB complaint database and with your state attorney general.
A "lender" that guarantees approval, asks for a fee, gift card or prepaid card before paying you, or wants your online banking password is a scam. No legitimate lender can guarantee approval before it reviews your application. Report it at ReportFraud.ftc.gov.
What online direct payday loans cost
Online payday lenders usually charge a fee per $100 borrowed, set within your state’s limits. The CFPB says a typical two-week payday loan with a fee of $15 per $100 borrowed works out to an APR of almost 400%.
| Scenario | Fees paid | Still owed |
|---|---|---|
| Repaid on time | $60 | $0 |
| Renewed once | $120 | $400 |
| Renewed three times | $240 | $400 |
The CFPB found that four out of five payday loans are rolled over or renewed within 14 days. Use the payday loan cost calculator to see your own numbers.
How fast online direct lenders pay
Approval can take minutes, but online lenders usually pay by ACH bank transfer, which runs on business days only. Same-day deposit is possible if you are approved early on a weekday; otherwise expect the next business day. See same day loans for how timing works.
Cheaper options to check first
- Credit union payday alternative loans, capped at 28% APR.
- Small-dollar loans from your own bank.
- An employer paycheck advance or cash advance app.
If you are on active duty or a covered dependent, the Military Lending Act caps most consumer loans at 36% Military APR. Talk to your base financial counselor or relief society first.
Amounts, fees and terms depend on your state. Some states ban payday loans or cap rates at 36%, so lenders do not offer them there. See payday loan laws by state.
Need cash before payday?Send one free request to our lender network. We are not a lender; offers and rates come from lenders.
Request a loanFrequently asked questions
Is this site a direct lender?
No. PaydayEase is not a lender. Our form sends your request to a network of lenders. If one makes you an offer, that lender is your direct lender and its terms are shown before you accept.
How do I know if a website is a direct lender?
A direct lender names itself as the creditor in the loan agreement and holds a license in your state. Sites that say they "connect" or "match" you with lenders are networks or lead generators. Read the privacy terms to see who gets your data.
Are direct lenders better than networks?
Not automatically. A direct lender shares your data with fewer companies, while a network gives several lenders a chance to make an offer. What matters most is that the lender that funds you is licensed in your state and shows its APR before you sign.
Can a direct lender guarantee approval?
No. A legitimate lender has to review your application, income and bank history first. A promise of guaranteed approval, especially with an upfront fee, is a warning sign of a scam.
Do tribal lenders have to follow my state’s laws?
Tribal lenders often claim they do not. Regulators have challenged this; in 2017 the CFPB sued four tribal-owned lenders, alleging their loans were void under state law. Read the governing-law section of any agreement and prefer a lender licensed in your state.
Sources
- FTC — Lead generator that deceptively solicited loan applications agrees to pay $1.5 million penalty (January 2022)
- 12 CFR 1026.18 — Truth in Lending content of disclosures (identity of the creditor, APR, finance charge)
- NMLS Consumer Access — check a lender’s license
- CFPB — CFPB sues four online lenders for collecting on debts consumers did not legally owe (April 2017)
- CFPB — What are the costs and fees for a payday loan?
- CFPB — CFPB finds four out of five payday loans are rolled over or renewed (2014 data point)
- CFPB — Submit a complaint
- FTC — ReportFraud.ftc.gov
- CFPB — Military financial lifecycle: your rights under the Military Lending Act