In the last decade, the total number of loans given out by traditional lenders have decreased by more than 20 percent. To lower your chance of loan approval, some lenders would require you to have a good credit score.
It might sound discouraging, but the good news is, you can always increase your chance of getting approved for a loan even if you have a bad credit score. How? That is to work with a direct lender. Below are the top 5 benefits why you should work with a direct lender.
1. Higher Chance of Loan Approval
Traditional lenders like large banks are not interested in working with people who have bad credit scores. The gain that they will get is simply not enough to cover the risk. This is why they usually turn down small businesses and people with bad credit.
It is not the case with online loans for bad credit direct lenders. Though having a good credit score will always give you the best terms. But depending on the terms of the loan, you may be able to make a good deal with a direct lender.
They simply do not help out people just to make more money. They understand each borrower’s needs and are willing to work with them to see how they can meet their needs.
2. Better Loan Terms
Securing a loan with a traditional lender is simply not an assurance that you will always get the best terms. In most cases, traditional lenders charge borrowers with high-interest rates and fees to make sure the deal favors them.
They are more interested in securing their own interest than the borrowers. Moreover, the rate will depend on your credit score and credit history. But with direct lenders, you can have a better chance of securing a loan and with favorable terms.
3. Direct Communication with the Lender
A direct lender can provide you a service that is fast, secure, simple and straightforward. You will know whether your loan is approved or denied right away! When you apply for a loan with a direct lender, the one you are working directly with is also the one who will provide the loan.
With this, it streamlined the process from the loan application to loan approval and releasing of loan. Not only that it saves you time but it also saves you money.
4. Obtaining a Customized Loan
Compared to a traditional lender, a direct lender is more motivated to work with borrowers and make sure their client’s needs are met. Even though you are not approved for a loan on your first try, they are willing to customize a loan that you can manage.
Working with direct lenders eliminates the middleman or any sort of the third party. Therefore, they have the liberty to be more creative with the loan terms that best fit the needs of their borrower. It gives you the assurance that the lender is working on your side.
Plus, you will be provided with guidance from a loan specialist to attend to your concerns and needs. The loan specialist can help you with these inquiries:
- How to apply for a loan
- How much money are you qualified to borrow
- Repayment terms of the loan you will apply for
- Help you understand the language used in the agreement that you will sign
- Other services offered by the lender that you can avail
With a direct lender, they will make sure that you get the best customer service possible.
5. Quick Loan Release
If the loan that you applied for is intended for emergencies like medical bills, home or car repair, rental payment, etc. then working with a direct lender is the best choice for you. Oftentimes, working with traditional lenders will keep you waiting for weeks before they will release the loan. This is not good if you need the money immediately.
But with direct lenders, you can access the money within a few days, a few hours or even a few minutes! This is because direct lenders do not work with third parties. It speeds up the entire process making it easier to be approved and receive the cash that you need.
So if you need quick cash, better work with a direct lender.
There could be some point in your life that emergencies will knock at your door and you are not financially ready. The good thing is that there are lenders that understand the financial struggle of the borrowers and are willing to work with them just to meet their needs.
However, it is also important to note that the money they lend is a responsibility that you need to pay. Make sure that the money is used wisely so that you will not fall into the debt trap. The loaned money can either ease your burden or add to your trouble. The answer depends on how you spend it.