06 Feb Why Use A Direct Lender For Online Installment Loans?
Why Use A Direct Lender For Online Installment Loans?
DIRECT LENDERS SAVE MONEY, TIME AND HASSLE.
In most scenarios a direct lender is going to be the way to go. Before we get into though, we will explain the difference for you.
A direct lender is what you probably thought, someone that will directly lend their money to you. You go to their website, use their application, and repay them directly. You deal with the same lender throughout the entire process.
An indirect lender really isn’t a lender at all when you break it down. Rather, they take your information through a similar application and then send it off to many different lenders to see who is the best fit… or who pays them the most. They all have different ways to manage that process but we won’t get into that here. Long story short, you end up applying through one site, but working with another as you move through the process.
Indirect lenders give you the benefit (or drawback) of variety. If you are looking for a bad credit installment loan, they may seem appealing. Some people are simply “shoppers” and like to shop around for things so this is your thing.
However, if you are looking for something that is a little easier, has less middlemen, and doesn’t bog you down with an endless stream of emails offering you loans from people you have never heard of — then pay attention.
YOU WON’T BE BOTHERED BY TONS OF LENDERS
When applying for an online installment loan, you typically go through one of two steps. One which allows you to shop, asks you some basic questions to establish your criteria and then gives you a list of lenders to shop through. You would then go on to do another more formal application with the lender.
The other, hoping to appear as a direct lender, will have you complete a formal application on their site. Afterwards, they forward your information to numerous lenders who can fulfill the need. You will typically get a lot of responses this way. A lot.
With the latter, you will ultimately getting a ton of reminders for the rest of your life (or until you unsubscribe) about the fact that their are loan options available to you. While this sounds like a good thing (oh look at all this money available to me) be mindful of what offers are available to you. If you were searching for a no credit check installment loan, chances are these aren’t cheap loans. They may offer “guaranteed approval” but that comes with a cost. Be mindful.
YOU WILL HAVE A SIMPLE PROCESS
When going through an indirect lender, you may end up talking with several different companies for a while until you decided and receive your funds. This process (while often underestimated) can end up taking an extended period of time.
When going through a direct lender like Credit Fair-E, you will talk with one company and only need to understand one process. Through the payment of the loan, you will pay back one company and get any questions answered by the same lender.
PRIVACY AND SECURITY
We’ve all been there at one point or another. Sometimes when you have a need and really need the money, you’re willing to pay and submit whatever information is necessary to fill the gap. However, if you’re reading ths post you are (hopefully) not yet in that situation.
Since we have the opportunity to consider it ahead of time, let’s. When submitting through a number of lenders all at the same time, you are putting your information at risk. Obviously, we would hope all of these potential lenders are trustworthy. However, that doesn’t mean that they couldn’t be at risk of a hack and then your information is out there.
Better, at least in our opinion, that you limit the risk and find one lender that works for you. There is no sense in having your social security number, date of birth and other personal information in the hands of numerous lenders — especially if you don’t even end of taking out a loan with their institution.
While we definitely feel that direct lenders are the better option, we don’t want to totally discount indirect lenders as being a valid option. After all, ethical companies like Credit Fair-E may partner with those sites in the future. They also definitely have their own unique set of advantages for certain situations. As always, we remind you to evaluate your options when looking at loan options. As everyone’s scenario is different.
If you are in a position where you are currently looking for a loan, Credit Fair-E offers installment loans up to $500 and might be a great option for you. With no credit check required and an easy application process. Click below to get started.