LOS ANGELES, July 21, 2020 (Newswire.com) - Those who have ever considered getting a personal emergency loan such as a same-day installment loan may have encountered loan brokers or personal loan lenders who say they can help find the best loan available.
However, these lenders can be a much less secure source of a loan than a direct lender that handles a loan within their own company. Here are just four reasons why it is important to always make sure to use a direct lender for emergency loan needs.
1. Keep financial information secure
“Personal loan lenders” will usually operate by taking the borrower’s financial information and selling them to third parties. They might select the best offer for the borrower’s account, but they can also select a loan based on who offers them the largest fee for their business. That means that the borrower’s financial information is being sent out to a large network of third parties without any guarantee of it putting more money in their pocket in the end.
What’s more, some websites that claim to be personal loan lenders or even installment loans direct lenders might be phishing scams in disguise, which will steal the borrower’s information and use it for their own ends. Using a licensed direct lender who is well-known and trusted is the best way to be sure that personal information is in good hands when applying for a loan online.
2. Get a loan ASAP
Direct lenders are more likely to be able to lend out money to borrowers much faster. Because there’s no waiting time and third party contact, they can get approved for a loan within minutes — and get cash almost as quickly.
Many people seek out emergency loans for time-sensitive needs such as an upcoming bill or emergency repair, so when time is money, a direct lender is the way to go.
3. Understand the borrower’s options ahead of time
One of the advantages of using a licensed direct lender that follows best practices is that the borrower can fully understand the terms of their loan ahead of time.
As many borrowers have heard about (or experienced) the pitfalls of emergency loans, they might also know that an issue can be when unexpected charges and fees make a loan much more expensive than it first looked.
With a trusted direct lender, borrowers can be sure of how much they’ll need to repay the loan and when those payments will be, meaning that they can set up a plan to pay off the loan without excessive fees.
4. Choose a trusted lender
A licensed direct lender has to follow both state and federal regulations on loans, which means the borrower has a variety of protections they might not have from a personal loan lender, who could connect the borrower to an offshore lender that circumvents their legal rights.
Using a lender of the borrower’s choice also means they can choose a lender that’s easy to contact, whether in person at a store or via customer support, to make sure they can handle any problems that come up in the process of paying off the loan.
Some direct lenders even go above and beyond legal regulations to offer high quality best practices such as extended payment options. A good sign to watch for is membership in the Community Financial Services Association of America, whose members all have to follow their best practice guidelines. Find their membership list on their website to double check that a lender is in good standing with them.
Source: iQuanti, Inc.