A loan is a specified amount of money someone borrows with the intention of paying it back according to a repayment schedule designed by both the lender and the customer. There are various types of loans that can be divided into two major categories: short-term and long-term loans. The first category has become widely popular and the process of finding a reliable direct lender turned into a rather difficult one. Here are a few tips on how to choose the right direct lender!
Know the difference between a broker and a direct lender :
There is a difference between a broker and an online direct lender which can save you a lot of time and money. A broker is the third party which collects information regarding the offers from various kinds of lenders suitable for your needs. Although it sounds good, they aren’t the ones who lend you the money, therefore, the services they provide to get you the best lender imply some extra fees. If you manage to do the research by yourself and pick a direct lender yourself, the process of an applying for a short-term loan will be faster and cheaper. Prime online direct lenders like Credit Cube offer installment loans which take only a few minutes to apply for and they process the application during the same business day. That is an incredible advantage and a real proof of how much this market has evolved.
What’s the interest rate?
Before agreeing to any contract, see the interest rate attached to it by the lender – check if it’s fixed or variable and if there are mentioned any other important aspects. The interest rate depends on how much money you’re borrowing and for how long, that’s why a short-term loan is an ideal solution in case you have a financial emergency. You can also get an estimate of the costs using a short-term loan calculator.
The more flexible, the better :
Unlike some other type of firms, direct lenders design the repayment schedule of the short-term loan according to your needs and possibilities. Also, most of them do not charge any pre-payment fees, which is a big plus for your budget. For example, if within one month you managed to save more money and you want to add $100 to your payment, there will be no fees involved and this will fasten the whole repayment process. It might sound like an unimportant aspect, but you’ll notice how valuable this feature is and what a great impact will have on your financial life.
What borrower incentives does the direct lender offer?
All lenders will present themselves as the best, but the key is to find the best direct lender for you, for your particular needs. See if they offer any interest rate reductions if your account is accessible and easy to manage if they offer 24 hours account management and if they let you make changes, check balances and make payments. Don’t be afraid to ask as many questions as you can, because you have the right and responsibility to know everything about the state of your short-term loan. A good and professional direct lender will put at your disposal a customer support team of experts, ready to help and guide you.
There are many reasons why short-term loans became so popular since they appeared on the market and most of those reasons make them the best choice. The difficult part is choosing the best direct lender for a short-term loan, which can be quite tricky but also very rewarding if you succeed. The above tips will make the process easier for you and hopefully, will guide you towards making the best decision!
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