A direct lender is a financial institution that works directly with a borrower. It receives their application, usually through the Internet. The direct lender makes its own lending decisions.
It reviews a borrower’s financial information and underwrites the loan according to its own specific guidelines. It then funds the loan by depositing money directly into the borrower’s account electronically. Many direct lenders specialize in certain types of loans, including loans for those with bad credit.
How We Work With Direct Lenders
When you submit your application online it goes to our vast network of direct bad credit lenders. These lenders are willing to approve loans that mainstream banks will not.
They examine financial information beyond your credit report and credit score. For example, they look at your employment history and paycheck amount to determine your ability to pay back the loan.
We do not lend you money, but we are experts in finding and matching you with direct lenders seeking borrowers with compromised credit.
Why Direct Lenders Approve Loans Banks Can’t
Most banks follow tight and inflexible lending guidelines. They don’t want to take on any risk when lending. They seek borrowers with high credit scores, assets, and money in the bank, usually their bank. However, direct lenders take on more risk, but must charge higher rates to offset the riskier loans. Borrowers are less likely to pay back these higher-risk loans on time.
Why Direct Lender Make Loans Easier
If direct lenders didn’t exist, bad credit borrowers would be shutout of the loan marketplace. However, with these lenders, you can find loans that are easier to access – and you don’t have to drive from bank-to-bank, filling out dozens of applications or hearing no again and again. Instead, you complete a quick, secure online application and reach hundreds of direct lenders. This saves you time and gas money.
How You Qualify for the Loan
If you have okay credit, you may find a direct lender willing to give you a longer-term installment loan (12 months to a year) at a lower-interest rate. However, if your credit score is too low, you’ll need to get your loan from a lender that bases the decision on your job and paycheck. You’ll also have to pay it back faster, usually over a few weeks or several months. In addition, you need an active bank account.
How to Apply in Two Minutes
You can apply right now by filling out our online application with some basic information. It takes about a minute or two. Submit it and start receiving loan offers within seconds. The offers will detail the interest rate and terms for the loan.
How to Choose the Best Loan
Direct lenders know they are competing for your business. This puts you in the driver’s seat and ensures that you get their best offers. Also, you can compare the loans side-by-side and see which one fits your situation.
Pay attention to interest rates and terms, including the repayment period. If you can’t pay back the loan in one pay period, you’re likely to find one that offers a longer repayment period. Even if the rate is higher, you may save money by not having to pay late fees. So make sure to consider all angles of the offer before you accept it.
How to Get Funded
Once you decide on the loan you prefer, contact the lender and let them know. You may also need to provide your paystub and bank account info so they can deposit the money in your accounts. Many times this process takes less than one day.
Also, find out how you make your payments. Some lenders may withdraw the funds directly from your account. If so, record the date and have the funds available to avoid overdraft fees.
How a Loan Can Improve Your Credit
Receiving and paying back a loan on time improves your credit. It shows lenders that you can handle a loan and repay it. Typically, the lenders will report this to the credit reporting agencies, Experian, Equifax, and Transunion. If not, ask them to do so. This makes it easier to get a lower cost loan later.
But remember the flipside is also true. If you pay late or not at all, it will bring your credit score lower. This can cost you more or make it impossible to find a loan in the future. Paying late also causes you to pay late fees, which make your current loan more costly.