Finding a direct lender has become both easy and tricky nowadays. If you are lucky, you might find a lender that won’t waste your time with lengthy application processes only to reject your request later. Landing such a direct lender can be a blessing as it allows you to get the loan fast and immediately settle your needs. To help you achieve the same, we will show you the most crucial factors to consider when looking for direct lenders. Let’s dive right in, shall we?
Table of Contents
Are They Loan Brokers?
Most online loan brokers try to disguise themselves as direct lenders since they know that’s what many people are looking for. A loan broker is likely to take your application and sell it to another lender as a lead for commission. So, the chances of getting you a loan are usually pretty minimal. Also, you are never sure if you are getting the best deal because brokers advertise loans from specific lenders.
To avoid disappointments, always ensure to verify whether you are dealing with a loan broker or a direct lender. Direct lenders personally process your application and then approve it without involving third parties. That minimizes the chances of getting rejected. Payday Loans Online is a great example of a professional direct lender who provides instant loans without selling your sensitive data to third parties.
Are They Licensed
Dealing with a licensed lender makes things much easier because you are sure they will operate within the set regulations. This is because direct lenders are licensed, meaning they must follow the given rules when issuing and collecting loans. This helps ensure that customers get the right services and are treated professionally. You also know that they will likely offer instant loans without overcharging you.
Therefore, always check whether the broker has a direct lender license. This will make it easier to spot loan brokers because they won’t have a direct lender license. That’s why they can be dodgy and sell your data to other lenders without being directly involved in the decision-making process.
What Are Their Interest Rates and Fees?
The interest rate is among the top factors to always consider before applying for any loan. Interest rates vary with direct lenders. So, even if a lender is offering an instant loan, don’t forget to ask about the rates because some can be pretty high, making the debt difficult to repay. Plus, remember to inquire about other involved fees because they can also significantly increase the final amount you owe. So, always ask the lender whether you need to pay a down payment, what rates they offer, and the final amount you’ll owe. That way, you have a clearer picture to help make a better decision.
How Long Does the Approval Process Take?
One of the biggest advantages of dealing with a direct lender is you don’t have to wait for long for the loan to be processed. If you have a good credit score and qualify for the loan, then most direct lenders will process your request within a couple of days.
Most direct lenders will tell you how long their processing time is. That way, you know if that will match the urgency of your needs.
What Are the Consequences Involved?
Every loan has some consequences if you fail to repay on time or don’t pay at all. These consequences can vary from increased interest rates to a penalty fee. Some lenders might even come for your assets, especially if it is a huge amount of money. Therefore, always ask the lender what consequences to expect if you delay the payment. That way, you know what you are getting into from the outset. It also helps ensure you don’t look at the money only but forget what might happen if things went south.
Check Out Different Direct Lenders
This is a pro-tip to help you get the best lender in the market. Checking out different lenders allows you to compare their interest rates, fees, and regulations. That way, you can pick the lender with the cheapest rates that you will afford to pay without breaking a sweat when the due date arrives. It will also enable you to easily find a direct lender with the most convenient due date to avoid delaying payments as much as possible.
Additionally, look for the lender with the best customer service and professionalism. Such a lender is likely to solve any issues more professionally and be available when you have any queries.
Conclusion
Direct lenders are usually the best go-to option when you need cash loans, emergency loans, bad credit loans, instalment loans etc. Every direct lender offers all these loans with different conditions. You are also likely to bump into a broker who doesn’t even offer the loans but acts as an intermediary. Hopefully, you now know how to navigate through all these things and find the best direct lender with favourable loans.
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