If you need quick cash to cover unexpected expenses, installment loans come in handy. Installment loans let you repay the loan in small installments scheduled by the lender. Before applying for an installment loan, its always wise to consider whether you actually need the loan.
Installment loans are a better option compared to payday loans. This is because with payday loans, you may not be able to pay back the loan on payday because of your employer may fail to pay you back on time. Installment loans on the other hand, allow you to spread your repayments over a scheduled period of time hence easing financial stress.
The sooner you payback your installment loans the better for you. You don’t always need to pay back the loan in installments. If you are able to pay it back on time, the full amount even better. It is also important for you to understand the cost of the installment loan for you to know your pre-payment options.
Why Use Direct Lenders to Access Installment Loans
Direct lenders always make sure that they state out the loans available. If you want an installment loan, or even a settlement law, payday loan or line of credit, the direct lenders makes the options known to you. Direct lenders also explain the terms and rates clearly which allows you to get all the information you need before borrowing.
The direct lenders take you through the application process and fund your loan once they accept your application. They also don’t share your information with third-party lenders without your consent first. This gives you peace of mind because you know your financial information will be private.
They also have a loan matching service that allows you to find an interested direct lender. Your qualification is based on your income status, your state of residence, and the loan you need. The loan matching services saves you effort and time.
If you prefer an online direct lender you should always make sure you find out all about the company before applying. You can do that by checking their website. Direct lenders who are trustworthy mention all their loan terms and rates. On their site, the lender is supposed to display links that show their state licenses to show that they are legal and allowed to lend in their state.
How to Identify Scam Direct Lenders
If they are not interested in your credit history
Lenders offer credit cards or loans for many purposes. For instance, to give you a chance to consolidate your bills or start a business. However, if you find that a lender is not interested in knowing your credit history, you should worry. Most of the ads put out by the lenders are clear indications of scam. Ads that emphasize on getting a loan without caring about the past, those are lenders you should avoid.
When the lenders pressures you to act immediately
Scam direct lenders will try to get you to give them their personal information or get you to send them money first. If they ask for personal information like a bank account information, credit card number, or social number security without getting any paperwork, you should be wary. To avoid this trap, always make sure that they send you the paperwork before you decide to apply for a loan.
If the lender asks for upfront application fees
If you find a lender who wants you to pay upfront fee so that you can apply for a loan, you should be wary of them. If the lender is legitimate, they will not ask you to pay any fees before you receive your loan. Lenders who ask for upfront fee go against the federal law and they could lose their license or registration.
If the lender justifies the upfront fee by claiming it was processing fee or collateral in case of bad credit, they are scammers. If you make the mistake of paying the upfront fee, the lender will take off with the fee and leave you stranded.
If the lender asks for your personal information
Never give your bank account information, credit card account number, or your social security number over the internet or phone. Only give out your personal information if you know why the lender requires the information or if you are familiar with the company.
Conclusion
When you are in a situation where you need to get an installment loan it means that you actually need it. This means that you need the cash fast and you might end up letting your guard down making you vulnerable to scammers.
Direct lenders might be the best option for installment loans but you need to be skeptical and wise about the installment you want to receive despite how convincing the promotion is and what you hear. Scammers work extra harder to seem legitimate and professional.