Life can be a real roller-coaster. There’s plenty of ups, downs, and twists along the way, and I’m not just talking about finances! Of course, sometimes these ‘downs’ leave us in a bad financial position, and in need of a little help.
Now usually when that happens, we end up seeking loans or other financial assistance. The problem is that most loans are offered via brokers instead of direct from the lender. Obviously, anybody can figure out that a broker doesn’t work for free. With up to 12 million Americans needing short-term loans each year, these brokers can end up pocketing large amounts of your cash just by being middlemen.
Personal Information Security
So, what are the advantages of direct lending? Firstly, there’s the fact that you’re only dealing with one lender, so there’s no need for your details to be passed around multiple lenders. This keeps your personal information safe and helps to protect you from various marketing attempts from other lenders.
A broker would also send your application through multiple lenders, which would mean multiple attempts to access your credit file, potentially having a negative effect on your credit score.
Easier to Communicate with a Single Company
There’s no messing around when you’re dealing directly with the lender. Any communication is direct so you can get a real answer to your questions. It also makes the process faster and easier from start to finish. There’s no waiting for an application to be approved, or for information to be passed back and forth.
This level of simplicity also helps with your application – and not just because it’s accepted/rejected immediately. Basically, you can talk to the lender and find out what type of help they ARE able to provide, or why they rejected you. Having this info makes it much easier to move forwards and get the help you need.
The same also applies if you have problems with repayments. Some companies, such as MoneyBoat, are open to discussion if the unexpected happens and you can’t make a repayment. A broker wouldn’t be able to give you any leeway, whilst a direct lender can. Take a look at their website to find out more about Moneyboat.
Can Work Around Limitations
As mentioned in the previous point, a good direct lender will have some flexibility and be open to communication if repayment problems come up. Keep in mind that this only applies to real emergencies. Making late payments in other circumstances can still cause huge problems.
With that said, a direct lender can work around your finances and credit score. Even those with really low credit scores can still get a direct loan, under the right circumstances. You might need to take a hit in terms of a higher interest percentage on repayment, or even having to settle for a smaller loan than what you wanted. The important point is that you CAN still get some financial help when it’s needed, and by sticking to your repayments, your credit score will improve. That in turn means a better deal next time.
Now hopefully you have enough knowledge about why direct lending could be better for you!