What Are Direct Lenders and How Do Their Loans Work?
A direct lender is an institution other than a bank that lends money straight to consumers. Whereas a financial institution would have to go through a third party to approve your loan request, direct lenders are “direct” because there’s no middleman needed for the transaction.1 The direct lender handles your entire loan process, from the application to getting you your payment.
Why Get a Direct Lender Loan?
In short, direct lenders offer more flexible financial products and can tailor their recommendations to your personal financial situation. While banks may reject individuals who don’t have a certain credit score, direct lenders will take your priorities and circumstances into account and offer loans to those who have less-than-perfect credit.
Additionally, direct lenders are oftentimes able to offer better rates and require fewer extra fees2, even to those with bad credit. The interest rates are often lower through a direct lender because there are fewer parties involved in the process.
How Can I Get a Direct Lender Loan?
A direct personal loan refers to the type of loan you get from a direct lender, such as a payday loan or installment loan. Since direct lenders don’t have to go through another institution, you’ll be able to get your money even quicker – often within the same day. Since many people needing a loan are strapped for cash due to an unpredictable situation, the ability to get same-day funding can be especially helpful.
LendNation offers personal loans in our store locations or online, in certain states. You’ll simply fill out an application and once you’re pre-approved, we’ll let you know. Then, you can decide how you want to receive your cash: through a debit card, check cashing or in your bank account. We’ll guide you through the entire process from start to finish, answering any questions you have along the way. All you need to apply is a current US-issued photo ID, a checking account in your name, proof of income and a phone number.
What Are the Restrictions on Direct Lender Loans?
Direct lenders want to make the process of securing a loan as easy as possible. The paperwork is short and there are no restrictions on how you can spend the money. Whether you need cash for home repairs or groceries, you can spend it however you like.
Direct loans are also highly regulated, meaning each state requires direct lenders to follow certain rules, make terms accessible and keep a state license visible on the website. All of this helps make it clear that a lender is reputable.
A direct lender will help you make good financial decisions that can get you closer to your goals. The loan terms are not as rigid, and the credit score requirements are more flexible. This means you can get the funds you need faster, allowing you to receive financial support without delay.
Making the Most of Direct Payday Lenders
With over 30 years in the lending business, LendNation is known across the country for being a fair and respected leader in the industry. If you need a title loan, installment loan or payday loan, our customer service representatives are happy to help you get started with an application online or in person at one of our 250+ U.S. stores. Ready to make your financial challenges history? Let LendNation help you with your lending needs!