Has an unexpected emergency expense arrived at your doorstep? If you don’t have savings, and you can’t put off this bill, you may be on the lookout for a loan.
Borrowing money may help you take on unanticipated medical bills, emergency auto repairs, and home maintenance you can’t avoid, even when your budget comes up short. But it may not always be easy to know what kind of loan to use or where to get it from.
People who go online to hunt down their options may be faced with a big question: should they go through a loan matching service or an online direct lender?
If you’re confused about your options, MoneyKey can help by shedding some more light on this topic. Here’s everything you need to know about an online installment loans direct lender.
What is a Direct Lender?
Here the word “direct” gives you a clue about how you interact with this kind of lender. There are no middlemen standing in the way. It’s just you and your direct lender.
In other words, you’ll generally interact directly with just one company throughout the entire process.
Without a third-party or broker involved, a direct lender facilitates every part of the loan on their own. In a nutshell, this means a direct lender decides if you qualify for a loan, and if you do, they lend you the funds, too.
More specifically, a direct lender is responsible for the following three jobs along with some others:
- Reviewing your application to see if you qualify
- Funding your loan if you’re approved
- Overseeing and applying your payments towards your loan
A Direct Lender is Not a Loan Matching Service
Unlike a direct lender, a loan matching service is a third-party that acts as a go-between. They may accept your application, but they don’t finance your loan. They work as a broker that shops your request around to their network of lenders.
It would then share a list of the loans available to you at that time. This service may connect you with your choice of lender, and they may even oversee your lending profile, but they won’t fund your loan. Any money you do borrow comes from the lender, not the loan matching service.
What Kind of Loans Do Direct Lenders Provide?
While today’s focus will be on online installment loans from direct lenders, they may offer various types of online loans. Your options depend on a variety of factors, such as your state of residence, financial need, credit score, and even choice of lender.
Some examples of the most common loans from direct lenders include:
- Cash Advances
- Installment Loans
- Lines of Credit
- Payday Loans
- Personal Loans
- Student Loans[1]
What to Expect When Borrowing an Online Installment Loan from a Direct Lender
Now that you know a little more about the subject, here are some of the perks of working with an online installment loans direct lender.
1. Straightforward Process
Direct online installment loans are streamlined for simplicity. You’re only ever working with just one company, from start to finish, which can make it easier to keep important details straight.
2. Customer Service
Let’s be honest — borrowing money may be stressful, whether it’s your first or tenth time. It’s your finances hanging in the balance, and there may be a lot of money on the line.
Having one point of contact may make it easier to get answers if you’re ever confused or concerned about your options. You can generally find a way to contact installment loans direct lenders online from their website.
3. More Options to Research
If you’re shopping for online direct installment loans by yourself, you may have more control over the types of lenders you find. You also have the chance to review their policies, rates, and terms at your leisure to ensure they meet your standards before you share personal information.
4. Security
Anytime you share personal information, your privacy should be top of mind. Things like account and Social Security numbers, your name, and address are valuable data points to fraudsters[2]. This is all they need to open a fraudulent payday loan or cash advance in your name.
Choosing the right direct lender of online installment loans keeps their hands off your precious data. Reputable online direct lenders are state licensed to process loans. This certification proves they are legally allowed to lend in that state, and they follow all the necessary privacy laws.
This may also help you avoid fake loan matching services hoping you’ll share your personal information.
5. Peace of Mind
Working one-on-one with installment loans direct lenders that have robust security measures keeps your data in one place. Your information won’t be exchanged with affiliates like it would with a loan matching service.
If a matching service farms out your data, your contact and financial details may be spread across the financial world. Where it ends up could be surprising, as a matching service may contact hundreds of lenders on your behalf.
Direct lenders will only ever contact after you’ve sent an application, first to verify your information and then after to manage your loan profile.
6. Speed
An online installment loans direct lender doesn’t have to coordinate with another company to make decisions; they’re solely responsible for underwriting, approving, and funding the loans on their own.
Because direct lenders eliminate the middleman, they tend to move quicker than loan matching services, meaning you may get money fast when you need it in an emergency.
How to Find Direct Online Installment Loans
It may be hard to face an unexpected emergency expense with composure. These unanticipated bills are often urgent, important things you can’t put off — whether it’s a mechanic’s invoice or a doctor’s prescription.
Getting a loan to help you take on these new obligations fast may be your priority, but don’t let it overshadow your need to find terms and rates you can afford.
To find the best option available from installment loans direct lenders, keep in mind the following tips.
- Go with a Licensed Lender: Direct lenders must be licensed to service installment loans in your state. Without this certification, there’s no guarantee they will abide by the lending laws. [3]
- Read Your T&Cs: Make sure the rates and terms are easy to understand in your loan agreement. These determine important details, like how much interest and finance fees you may pay and your repayment schedule. If you aren’t sure of what anything means, here are some financial literacy terms you need to know before you borrow direct online installment loans.
- Protect Your Privacy: Check to see if a direct lender has a privacy policy page on their website. This page outlines how they intend to collect, share, store, and dispose of your personal information.[4]
- Evaluate Your Need to Borrow: Before you commit to any online installment loans direct lender, ask yourself: do I need to borrow? If it’s for non-essential expenses, like your child’s pee wee soccer league’s fees and equipment, then the answer is generally no. While something like kids sports can be expensive, consider alternative ways to pay these fees. Direct online installment loans are for unexpected emergencies.
How Does Borrowing from an Online Installment Loans Direct Lender Work?
When it comes to installment loans online, the borrowing experience has gone digital. Almost every step of the process is done online — from applying and being approved, to receiving your funds.
By virtue of being online, an online installment loans direct lender isn’t limited to the typical 9–5 business hours of the average storefront lender. This means you can start an application on your hours, whenever they may be.
As long as you have all your information handy, filling out an online application takes only a few minutes. If you’re approved, some direct online installment loans may be available as soon as the next business day.
Worried a glitch will threaten your chances of borrowing installment loans online? A completely digital service may be frustrating if you run into issues a chatbot can’t solve.
That’s why we temper innovative tech with a team of good old-fashioned people. Our Customer Care team is available 7 days a week to field questions about our products and services.
Take advantage of our team as you shop for direct online installment loans. Finding the answers to any questions you have now, before you borrow, may help you find the best option available.
Find the Right Option for Your Needs
The takeaway? Direct online installment loans may be a safe, fast, and convenient opportunity but don’t take anything for granted. Compare your options before you partner with an online installment loans direct lender.
Chances are, your research will bring up a lot of results, and they may not all be suitable for your goals. It’s up to you to determine if and when direct online installment loans fit into your finances.
Find more about our installment loans or contact us today to find out more about what we do.
[1] https://studentloanhero.com/featured/federal-direct-loan-college-practical-guide/
[2] https://www.experian.com/blogs/ask-experian/what-is-identity-theft/
[3] https://www.investopedia.com/terms/c/consumer-credit-protection-act-of-1968.asp
[4] https://www.ftc.gov/news-events/media-resources/protecting-consumer-privacy/financial-privacy
