Online Direct Lenders
Payday Loans, Installment Loans, and Lines of Credit
Not having sufficient funds for an unexpected expense can cause stress. There are many scenarios in which an unforeseen expense can cause people to require short-term help to quickly access the funds they need. Some people may seek help from friends or family, and others may have options to access credit through a bank. However, these options can be time-consuming and not available to everybody.
If you are faced with an unexpected expense, and have limited options to access money, an Online Direct Lender may be a viable alternative.
Online Direct Lenders often offer small-dollar loans such as Payday Loans, Installments Loans and/or Lines of Credit to help alleviate the stress of short-term financial challenges.
Typically, the process involves completing an online loan application. If approved by the online direct lender you may have access to your money by the following business day. When and how the funds are made available to you is subject to the terms of the Online Direct Lender and the banks involved in the process.
Consumers are encouraged to use discretion when filling out online loan applications. Not all loan application sites you visit are controlled by Online Direct Lenders that are licensed to operate and conduct business in your state of residence. Additionally, you may encounter marketing companies, often called Loan Matching Service Providers, who will try to match you with a third-party lender. Not all third-party lenders will be licensed to operate and conduct business in your state of residence.
What are Online Direct Lenders?
An online lender provides a payday loan, a line of credit or an installment loan directly to a borrower without any intermediaries. The borrower receives their loan directly from the lender, and the loan is to be paid back to that lender.
Online Direct Lenders evaluate and underwrite your online loan application and, if you are approved, will provide you with a payday or installment loan or a line of credit in accordance with their terms. You should only borrow from online direct lenders that are state licensed. This means that they are licensed to operate and conduct business in your state of residence, and that they comply with all federal and state lending rules and regulations.
What to look for when applying for a loan from an online direct lender:
- Online direct lenders should mention all types of loans available in your state (e.g. Payday Loan, Installment Loan, Line of Credit) and clearly explain all applicable rates and terms, including those related to any cash advance.
- Ensure that your personal information is adequately protected.
- An online direct lender should mention all of the loan rates and terms on their website. If they are state licensed, they will also have links that display their state licenses which show that they are legally allowed to lend in that state. A direct lender will review your information, determine your eligibility and, if you are approved, they will fund your loan.
Is MoneyKey an Online Direct Lender?
MoneyKey is a state licensed online direct lender in the following states: Alabama, California, Delaware, Idaho, Illinois, Kansas, Maryland**, Mississippi, Missouri, New Mexico, South Dakota**, Tennessee, Utah and Wisconsin.
MoneyKey is also licensed as a Credit Services Organization (CSO) and a Credit Access Business (CAB) in the state of Texas. As a CSO or CAB, MoneyKey attempts to arrange a loan between you and an unaffiliated third-party lender, guarantees any approved loan and is responsible for the ongoing servicing of any loan that is originated.
**MoneyKey is no longer accepting applications for new Loans or Lines of Credit in these states.
Loan Matching Services
Loan matching services are organizations that attempt to match you with a third-party lender based on the information you provide in your online loan application. You should be aware that you are contracting with and receiving your cash advance from these third-party lenders, not the loan matching service who accepted your loan application.
A loan matching service does not dictate the loan terms or repayment schedule of your cash advance, since they are not the direct lender. Although online loan applications can be filled out on both a loan matching service’s website and an online direct lender’s website, you should be aware of the following pros and cons of using an online loan matching service:
- A loan matching service will shop your application around in order to find an interested lender, so if you do not qualify (based on state of residence, income, type of loan required etc.) with one direct lender, you may qualify with another.
- A loan matching service might save you the time of having to apply with multiple online direct lenders in order to receive a cash advance.
- You will have no control over which companies view the personal information you filled out in your loan application, increasing the chances of your personal information being compromised.
- The loan matching service may not match you with the lender that has the type of loan (Payday Loan, Installment Loan or Line of Credit) or repayment fee structure you prefer.
- The loan matching service may not match you with a state licensed lender, like MoneyKey.
- The loan matching service may not match you with a lender whose terms you agree with.
How to spot a loan matching service:
- They will use words on their website like “lending network”, “matching”, and/or “connect you with”.
- An online loan matching service does not mention any rates or terms because they do not actually fund your cash advance. They only act as the middle man connecting you with lenders who will then fund the cash advance you need.