Why Direct Lenders are a Better Option for Online Loans
Short-term financial needs are bound to pop up every now and then. You may need some extra cash after a life event like a wedding, baby, or a move. Whenever you need money fast, a popular option is to apply for online loans.
Direct lenders are a leading provider of online loans, and they offer them without the unwanted fees or terms associated with loan brokers.
Online loans from direct lenders like Advance America offer a quick application process, instant loan decisions, and funding within 24 hours (in most states) of approval.
Let’s take a closer look at online personal loans from direct lenders and how they may benefit you.
What are online direct lenders?
As the name indicates, an online direct lender is a type of lender that works without a middleman to provide online loans. Direct lenders like Advance America pay your loan directly to you rather than working through a third party.
Online direct lenders provide you with access to the funds you need to help you get out of a financial bind. Depending on which type of loan you choose, your repayment period will vary. Payday loans, for example, are typically repaid on your next pay day or soon thereafter.
How do direct online loans work?
If you decide to pursue a loan through an online direct lender, you can expect the following process.
1. Submit an application
To receive an online loan, you’ll need to apply through the lender’s website and provide any required personal and financial details, including your contact information, Social Security number, and income.
If you want your loan deposited directly into your account, you can provide them with your banking details, as well.
2. Wait for the lender’s decision
Once you’ve submitted your application, the lender will decide whether they can approve your loan request. If you don’t have the best credit, you can work with a lender who specializes in loan options for borrowers with bad or no credit.
3. You receive the funds
If the lender approves your application and you’ve provided your bank information, you’ll receive the funds in your checking account via direct deposit. Many lenders offer fast funding, so you may be able to get your money within 24 hours or less.
Approved loans from Advance America provide same-day funding when you apply before 10:30 AM EST.
Benefits of working with a direct lender
There are a number of benefits to receiving online loans from direct lenders, including the following:
Work directly with the lender of your choice
When you apply for a loan through a direct lender, there is no middleman like there would be with a loan-matching service. You can apply with the lender or loan of your choice.
When shopping around for a direct lender, keep in mind that Advance America has over 80,000 5-star reviews on Trustpilot!
Get an approval decision within minutes
You don’t have to wait long to get an approval decision from a direct lender. After you send in your application, you’ll likely receive a decision right away. You may even be able to get your funds within 24 hours!
Since a loan connection service has to connect you to a lender, processing your loan can take time. You may even need to complete additional paperwork, which could delay your approval and funding.
Simple application process
Compared to other lending options, applying for online loans with direct lenders is quick and easy. Rather than waiting for various lenders to provide you with offers, you can apply for a loan with your phone or mobile device in one simple go. This means you can complete the process in a few minutes from the comfort of your own home, often getting a decision within minutes.
An affordable loan option
Any time you secure a loan using multiple entities and lenders, you may incur additional fees. Direct lenders, on the other hand, don't require these excess fees because they don't use a middleman or broker.
Secure and transparent
Another advantage of working with direct lenders is that your information stays safe and secure. You can rest assured that no one will be privy to your personal and financial information aside from the lender.
When you work with a broker or third-party lender, there's a chance that they will sell your information to other parties, leading to unsolicited emails and offers.
What types of online loans are available from direct lenders?
In addition to the many advantages that direct lenders offer, there are several different types of online loans for which you can apply.
As the name implies, personal loans are those you might take out for personal reasons. These reasons could include anything from buying a car to covering a missed mortgage payment. Online personal loans will have varying interest rates and fees depending on whether you apply for a secured or unsecured option.
Lines of credit
If you’re not sure how much money you need to borrow, you might consider a line of credit. A personal line of credit gives you access to a pre-determined amount of money. You can then draw on this amount of money as needed, only paying interest on the amount you borrow.
A line of credit can take a little longer to set up than other types of online loans, but once you have one, a line of credit provides you with instant access to money when you need it most.
One of the most common types of personal loans is the installment loan. With an installment loan, you borrow a lump sum of money and repay it over time in installments. You’re free to use the money for whatever you need, but be sure only to borrow as much as you can comfortably repay.
Payday loans and cash advances
Payday loans, also known as cash advances, are one of the most popular types of short-term loans. Direct lenders often specialize in payday and cash advance loans because they have a fast and easy application process. These types of loans are usually small enough that they don't require an extensive credit check.
Payday loans are specially intended for people who need a small amount of money in a hurry. They are referred to as payday loans because you are expected to repay them in full on your next payday.
Bad-credit and no-credit-check loans
A common misconception is that only people with good credit scores can qualify for online loans. Direct lenders like Advance America, however, often have many different types of online loans to choose from. This includes loans for people with bad credit and even loans where a credit check is not required.
Advance America offers direct lending options built for you
If you're interested in getting an online loan from a direct lender, Advance America can help. Apply now and receive a decision in minutes!