Bad financial luck can happen to anyone. For those lucky enough to have savings, they can withdraw cash from the bank to handle an unforeseen expense on their own. But what happens if you’ve just drained your emergency fund on another expense, and your car breaks down?
If you can’t afford to repair your vehicle, online direct lenders can help.
What Are Online Loans Direct Lenders?
By this point, you might be wondering, what are online direct lenders? They’re like many other financial institutions that don’t involve brokers or installment loan matching services.
To put it another way, they don’t partner with another financial institution to find borrowers, produce funds, or process loans. They handle every step of the borrowing process without getting any help from another company.
Another thing that makes online loans direct lenders distinct is that they do nearly everything over the web. While you may have to talk to someone on the phone to verify your information and go over your contract, everything else happens digitally.
That means you won’t have to arrange a meeting with someone at a storefront location to apply. Instead, you can fill out an online application on their website from any device, including your smartphone.
If approved, you’ll supply a bank account number, which means you can accept direct deposit loans and arrange for payments to come out of this account automatically.
What Are the Benefits of Working with Online Loans Direct Lenders?
Simple and Convenient Access to Cash
One of the biggest perks of using this particular kind of borrowing option is how easy it is. You can jump online any time you need help, from anywhere you get Internet access.
Compare this to in-person options. If you apply for a loan from a storefront location, you have to arrange a meeting during a bank’s business hours. These are usually 9–5, so it can be hard to coordinate if you work full time.
With online loans, you can apply at 2 a.m. if that’s the only time that works for you. If approved, you’ll also be able to manage your loan any time online, reminding yourself of due dates and arranging payments.
Quick Cash Once Approved
Depending on the financial institution, you may receive your approved funds as soon as the next business day. You may even find a same day cash advance. This speed can be helpful when you’re facing urgent issues that need immediate payment, like vet or medical expenses.
What Are the Downsides of Working with Online Loans Direct Lenders?
Can Be Expensive
Like any borrowing option, online loans come at a cost. You’ll have to pay back your principal plus interest and finance charges.
How much these fees cost may depend on a lot of things, including your lender, location, and credit score. Some direct lenders may raise their prices if you don’t meet certain requirements, so they can be an expensive way to borrow.
Requires Secured Internet Access
Since so much of the borrowing process happens online, you need access to the Internet to capitalize on these cash advances. Specifically, you need a trusted device that hooks up to a secured network.
According to one study, one in four households don’t have Internet. Without it, you may face some challenges in getting these installment loans. While there is free Wi-Fi from cafés and shopping malls, these networks have security holes that leave you vulnerable to fraud. Using the data on your smartphone is a better option.
No borrowing option will be the right fit for everyone, at every stage of their lives. You’ll only know if online direct lenders are a good option for today’s emergency by shopping around. Find a list of reputable lenders and compare their costs before jumping into any loan.