At some point, you may encounter a situation where you need to get a poor-credit loan. Emergencies and unexpected expenses are facts of life, but not everyone has the funds needed to meet these expenses right away.
By using a direct lender, you can enjoy several benefits that will help you in your financial situation, despite some of the drawbacks of having poor credit. At the right time, a direct lender for poor credit can give you the financial flexibility you need. Here are some instances where using a direct lender for poor-credit loans may make sense.
You need money fast
One big reason to use a direct lender is an immediate need for financial breathing room. Health emergencies, housing emergencies, or transportation issues can quickly become costly, and it may be easier on your finances to take out a loan and meet these expenses.
While you may think a poor credit score will limit you when getting a loan, many lenders have less strict credit score requirements and approve borrowers with poor or fair credit. So, using a direct lender for poor credit can get you the money you need without the added worry of whether you’ll be approved.
You want to maximize your privacy and security
By working with a direct lender, you can ensure that the information you share with them is secure. Unlike indirect lenders, which may provide your information to other companies, direct lenders keep borrowers’ information confidential and will not share it with lenders. So, getting a loan from a direct lender is a great way to get the funds you need while maximizing your privacy.
You want an easy application process
Direct lenders can offer a fast and simple application process that may avoid the traditional pitfalls of applying for a bank loan. You can typically also find direct lenders online that will work with you to find the right loan for your needs.
Furthermore, direct lenders can often deposit loans into your account faster than traditional banks. So not only will the application process go faster, but you may receive the loan faster as well.
You can’t get a traditional loan
Unfortunately, some banks will reject you outright if you have poor credit, even if your income is stable. Since many direct lenders have less strict credit score requirements, you may not have to worry about being rejected for poor credit. This means you can find a quality loan with stable terms, even if your credit has taken a hit in the past.
The bottom line
Loans from direct lenders offer a great way for poor-credit borrowers to get fast funds. If you need money fast, want to maximize your privacy, want an easy application process, or can’t qualify for a traditional loan, working with a direct lender may be the right option for you. Make sure to do your research and compare direct lenders online to find one that can meet your needs.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.