Your car might break down and require an unusual (and expensive) part to fix. You might injure yourself while vacationing on Spring Break and have to pay for medical care. You may just encounter weeks of bad luck when parking fines, cellphone overage charges, and other small bills drain your cash.
Emergencies happen, and when they do, we’re not always financially prepared for their cost. While some people turn to their bank, friends, or family to help them cover these new unplanned expenses, a growing number of Americans are opting for an alternative source for their financial assistance: online direct lenders. There are a lot of reasons that compel people to search out a direct lender online, but the following are the most popular ones.
Top 3 Reasons America Is Turning To Direct Lenders
- They’re Convenient
Sure, calling up your cousin Charlie or texting your friend seems like a simple way to get that extra cash, but these casual agreements can go sour fast — just as it did for Lisa on the Wall Street Journal. These loans between friends and family usually don’t come with well-defined terms, which can cause social friction if the lender asks for their money back before you agreed or if you end up being late on your repayment. It can put strain on your relationship as you evolve from friends and family to borrower and lender.
The bank has clearer terms than your family, but they follow a strict set of bureaucratic rules that complicate your application. This red tape can include exhaustive reviews of your finances and credit rating. In order to submit all of this information, you’ll have to make an appointment with an advisor. Due to the bank’s business hours, this might mean you have to take time off of work in order to meet with them.
Direct lenders, on the other hand, do the majority of their business online, including applications. These applications themselves are relatively simple in comparison to conventional lenders, as they only need basic financial and contact information, and since they collect this data through their website, you can apply at a time that fits your schedule. You don’t have to take time off of work and lose out on a few hours’ wages. You can apply anytime and anywhere you have a secure connection, even if that means you’re pressing submit at 2 in the morning from your bed.
- They’re Fast
If your application qualifies you for a short term loan, your direct lender will verify the information you provided. This includes a quick phone call, as well as third-party confirmation from your bank. Once these are verified, you can receive the amount of your loan deposited directly into the account provided as early as the next business day. In some cases, depending on where you live, you may even qualify for same-day funding.
- They’re Not Always Limited By Bad Credit
A facet of conventional lenders’ red tape includes a reviewing your credit sore. Many of these organizations will refuse any applicant with a sub-prime rating. If you’re still recovering from poor financial decisions that have lowered your rating in the past, your score could prevent you from getting the cash advance you need. Certain direct lenders, including those at MoneyKey, don’t perform credit checks with the major credit reporting agencies. While they may check your credit from other sources, they determine your candidacy through several other factors, so your less than perfect score won’t necessarily stop you from getting the cash you need. To see how they differ from conventional lenders in other ways, check out www.moneykey.com/direct-lenders-online.php and read up on their role as a direct lender.
These are just three of the most frequent reasons why 12 million Americans turn to cash advances, short term loans, and personal lines of credit from direct lenders each year. Convenience and speed are considerable assets when it comes to being prepared for your emergency. Whether it’s a Spring Break catastrophe or an automobile meltdown, read up on direct lenders like MoneyKey to see if their products are right for you.
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