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Direct Lender FAQs
These are the questions people ask most often when they are looking for a direct lender loan.
What is a direct lender?
A direct lender makes the loan itself. It reviews your request, sends the money and collects your payments, so you deal with one company from start to finish.
How is that different from an indirect lender?
An indirect lender, matching service or advertising network does not fund the loan. It passes your details to one or more lenders or other companies. That can widen your options, but more companies may see your information.
Is a direct lender the same as a payday lender?
No. Direct describes who funds the loan, while payday describes the type of loan. A direct lender might offer payday loans, installment loans or both.
Do direct lenders report to the credit bureaus?
Some do and some do not. Many payday lenders do not report on-time payments, while many installment lenders do. If building credit matters to you, ask before you borrow.
How can I tell if a lender is legitimate?
Check that the lender is licensed by your state’s financial regulator, look for a clear APR and fee schedule, and be wary of upfront fees or promises of guaranteed approval.
How much will my monthly payment be?
It depends on the amount, the rate, the fees and the term. Ask for the APR and the total you will repay, and make sure the payment fits your budget before you sign.
Is Credit Fair-E a direct lender?
No. Credit Fair-E does not make loans. We publish guides and refer visitors to Oakwood Financial, an advertising network that is also not a lender.