Is there a financial emergency where you need urgent cash? There are times when people have to apply for loans to tide over monetary crisis till the next paycheck. It may happen that there is a medical emergency and you need to clear the doctor’s bill. The price of payday loans is really high where the interest rate can be 200% even. But, the loan type is really popular. There are some who even take 5 loans each year to meet expenses. Not everyone has sufficient cash to clear the bills. You can never say when you may require cash on an urgent basis. Direct lender loans are a great way to clear hospitalisation bills or pay for college fees. The loan amount may be used to meet up a variety of expenses including overdraft fees, credit card expenses and late fees. The kind of loan is very much preferred since the money is transferred to the bank account instantly after the approval comes.
What is direct lender loan?
By checking online, you may come across hundreds of lenders willing to offer loan under urgent basis. If you directly approach the lender and do not involve intermediary like a loan broker, it is direct lender loan. The best part is that the credit history will not be considered. The following are the important facts on direct lender loan:
- There is no need to pay cash amount on the due date. You got to have sufficient balance in the bank account while the amount gets automatically deducted. So, when the day of repayment comes, the lender withdraws the loan amount along with interest charges.
- In this type of loan, you have to repay the loan along with interest in a month’s time.
- At times, lenders also allow the borrower to choose a payment schedule.
- You must apply for payday direct lender loan when you are sure of making repayment.
- The loan is expensive and the borrower must never fail on the due date.
- If there is a rollover of the loan to the next month, it means that you will be charged more. Thus, it is better to pay on the due date anyhow.
Tips to applying for direct lender loan
If you have a stable source of income, the lender will give you instant approval. Lenders only want the assurance that the borrower can repay back. Apply for a payday loan which may be repaid only after you get the next paycheck. This is the best way to deal with the lender. Following are the tips for applying the loan:
- Shop around for the best interest rate and get the price quote from multiple lenders.
- Do not choose lenders offering deferrals.
- Do not apply for 2-3 loans at a time.
- Choose a lender who is registered and accredited with one of the trade bodies.
Direct lender loans act as saviours when you need cash help. Before signing dotted lines, do read the terms and conditions of the loan contract. The loan repayment schedule should be comfortable for you. Approaching a lender for the loan directly can save money.
