Online Loans Direct Lenders
There is a new breed of lenders that gained increased popularity over the years – online lenders. When looking for a loan over the Internet, you will come across different types of online lenders. Some businesses build online platforms where different lenders offer their services. The pool of lenders are online lenders willing to give credit to borrowers applying through the platform. The applicant should use the online platform to apply for the loan.
The loan broker who manages the platform then sends your loan request to its pool of lenders who assesses the loan application prior to submitting their offer to the borrower. The loan applicant may have more than one loan offer to consider. This may seem advantageous to the borrower, but it also has some drawbacks.
Choosing a direct lender
First of all, let’s define what a direct lender is. Direct lenders are loan providers that take care of your loan application from start to finish. Unlike loan brokers, the funds offered to the borrower are directly from the coffers of direct lenders.
There are different kinds of direct lenders, such as those offering payday loans and those offering installment loans. But in essence, these direct lenders follow the same procedure when someone requests for a loan – they will review the loan request and once the direct lender deems the borrower as eligible for the loan, the funds will be transferred directly to the borrower’s bank account.
Banks and other traditional financial institutions are considered direct lenders but often have complicated loan procedures compared to direct lenders found online.
Advantages of direct lender loans
· Clear and straightforward information
You will be dealing directly with one loan provider so you can expect to get honest and upfront information about the loan, helping you make a well-informed decision. Third-party loan providers sometimes withhold pertinent information since they are handling more than one loan provider in their platform. It is important to get specific and clear information about a loan deal which is exactly what you will get when you deal with an online direct lender.
· Speedy loan process
Applying at an online direct lender minimizes the need to go through a loan broker or third party that facilitates the loan request through an online platform. Online direct lenders usually have their own platform that can be easily accessed online, but the difference is, only one entity will review your loan request and process your application. Third-party lenders usually have to wait for the response of their partners before you can get a quote. Direct lenders make the loan process speedy and hassle-free which is exactly what you need during emergencies.
· Your personal information is safe and secure
Sending your loan request to a direct loan provider means your information will not be shared with different people who may end up sharing your details with other affiliates. In other words, your personal and financial information is safe and secure from entities that may use your details for other purposes. Identity theft is a common concern nowadays and dealing with an online direct lender minimizes that risk.
· No agent fees to pay
Applying directly to the company that provides that loan means fewer fees since third-party lenders or loan agents typically charge a fee for their service. When you deal with a direct lender for your loan requirements, you don’t have to pay any agent or broker fees.
· Great customer service
Third-party loan providers who distribute your loan request to several lenders may seem great but what could be better than directly interacting and communicating with the loan provider himself? Direct lenders have dedicated customer service so you can reach out to them quickly if you stumble upon a problem or issue with your loan.
Loan products offered by online direct lenders
There are a variety of loan products available from a direct lender. Direct lenders also offer loans for bad or poor credit borrowers. You will also be able to choose from short-term and long-term loans to suit your current needs. It is important to note, however, that when you utilize a short-term borrowing for your long-term needs, your total loan will be much more expensive due to the interest rates and fees associated with short-term loans.
· Personal loan: A personal loan is the most flexible type of borrowing since you are allowed to utilize the funds as long as the purpose is legal from the country or state you belong to. It can be used to consolidate multiple debts, to purchase high-ticket items, pay for medical bills, and many more.
· Payday loan: A payday loan is a viable option when you need extra cash to tide you over to the following salary day. It is easy to apply for a payday loan and the funds are usually available immediately upon loan approval. Take note that although payday loans are easy to obtain, the interest rates of payday loans are higher than regular loans.
· Installment loan: An installment loan is suitable for those who would like to repay in installments, month over month. These monthly repayments must be remitted on time each month until the loan has been settled. Installment loans have monthly payments calculated from the amount of the loan, the interest rate and the terms of the loan. The direct lender should ensure that the borrower can manage to pay the monthly installments without these being detrimental to the borrower’s budget or living expenses.
· Emergency loan: An emergency loan is a quick financial remedy to urgent expenses such as medical bills or immediate car repair costs. This type of loan is beneficial to people suddenly dealing with an unplanned and urgent emergency situation.
Getting a loan from a direct lender is often faster and simpler, a third-party lender can provide more options since these brokers usually have several lenders as partners. Even if you decide to work with an online direct lender, it is important to compare rates from different loan providers. After personally getting quotes from several direct lenders, compare their loan offerings before making a decision.
When entering a loan agreement, remember that you should fully understand the terms and conditions stated in the contract. Make sure you have read the loan contract and the fine print before agreeing to it.
Why Choose Unsecured Loans?
Unsecured loans can help you out during the direst situations. If you need cash fast, unsecured loans like payday loans are the right choice for you. It’s fast, convenient, and highly reliable.
Unsecured loans other similar types can be extremely helpful during emergencies. However, most unsecured loans have high-interest rates compared to secured business loans. Loans with high-interest rates can be difficult to deal with. So choose the right deal that’s best for you.
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