Direct lender, broker, or lead generator
Three very different businesses use similar language, and the difference decides who holds your data, who sets your rate, and who you call when something goes wrong.
| Direct lender | Broker or marketplace | Lead generator | |
|---|---|---|---|
| Makes the credit decision | Yes | No, the lender does | No |
| Funds the loan | Yes, with its own capital | No | No |
| Sets your rate | Yes | No | No |
| Services the loan afterwards | Usually yes | Rarely | No |
| What it does with your application | Underwrites it | Shops it to partner lenders | Sells it, often to several buyers |
| Who you contact with a problem | The lender | Depends on the arrangement | Nobody useful |
Brokers are legitimate and can be useful, particularly for comparing offers you would not find alone. Lead generators are where the trouble usually starts: one form can be sold to a dozen buyers, which is why a single application sometimes turns into weeks of calls and texts from companies you have never heard of.
What we are
Loans on this site are made by , NMLS ID . We underwrite the application, fund the loan, set the rate, and service it for the full term. Your application is not sold, and your details are not passed to a panel of other lenders. The reasoning is set out on how we make money.
Where we are not the direct lender
In any state where we operate as a loan connection service rather than as the lender, that is disclosed before you apply, and the matched lender sets its own rates and terms. Our current status by state is on the licences page. A company that is vague about which role it plays is telling you something.
Why it matters to you
- Data. A direct lender uses your information to underwrite your loan. A lead generator's product is your information.
- Accountability. One licensed entity is responsible for the decision, the disclosures, and the servicing, and can be escalated to its regulator by name.
- Consistency. The rate you are quoted is the rate that gets written, because the same company does both.
- Servicing. When you need a due date moved, you are talking to the company that holds the loan rather than one that has already been paid and moved on.
- Fewer inquiries. One soft pull to see your rate, rather than several lenders pulling your file after a form is resold.
How to check what you are dealing with
- Look for an NMLS IDThen search it at nmlsconsumeraccess.org and confirm the legal name matches the site and the licence covers your state.
- Read the footer disclosureDirect lenders say so and name the entity. Marketplaces disclose that they do not make credit decisions. Lead generators bury it or omit it.
- Check the privacy notice for sharingLanguage about sharing with a network of lenders or marketing partners tells you your data is the product.
- Count the calls afterwardsIf one application produces contact from several companies, the form was resold.
- Ask directly"Are you the lender of record?" A direct lender answers immediately and gives you the entity name.
Our terms
| Amount | Term | Representative APR | Monthly payment | Total repayment |
|---|---|---|---|---|
| $500 | 6 months | 29.9% | $90.75 | $544.50 |
| $1,000 | 12 months | 29.9% | $97.44 | $1,169.28 |
| $2,500 | 18 months | 22.9% | $165.41 | $2,977.38 |
| $5,000 | 24 months | 22.9% | $261.62 | $6,278.88 |
Sample pricing with no origination fee, for illustration. Your rate depends on your credit profile, income, and state.
What direct lending does not mean
It does not mean cheaper by definition. A marketplace that shops your application to several lenders may find a better rate than any single lender offers, and if you have strong credit that is worth doing. It also does not mean easier approval; a direct lender applies one credit policy rather than several, so a decline is a decline. What it does mean is a single accountable counterparty for the life of the loan, which matters most when something goes wrong.
Questions about direct lenders
How to tell a lender from a broker from a lead generator, and why the distinction affects your data and your loan.
What is a direct lender?
A company that underwrites, funds, and services the loan with its own capital and holds the licence to do so. It makes the credit decision and sets the rate rather than passing your application to someone else.
Is a direct lender better than a marketplace?
Not automatically. A marketplace can surface a better rate by shopping your application, which is valuable if you have strong credit. A direct lender gives you one accountable counterparty for the whole loan, which matters most when you need something changed or something goes wrong.
How do I know if a website is a lead generator?
Check the footer and privacy notice for language about sharing your details with a network of lenders or marketing partners, look for a missing NMLS ID, and notice whether one application produces calls from several companies. A lead generator's product is your information.
Do direct lenders offer better rates?
Not necessarily. Rates depend on credit profile, loan size, term, and state caps rather than on the business model. What a direct lender removes is the extra layer between the rate you are quoted and the loan you sign.
Will my information be sold?
Not by us. We use your information to underwrite, fund, and service your loan and to meet legal obligations. We do not sell, rent, or trade personal data, and we do not pass your details to other lenders.
Who do I contact if something goes wrong?
Us, directly, because we hold and service the loan. If we do not resolve it you can escalate to your state regulator, listed on the licences page, or to the CFPB. The process is on the complaints page.