How Does A Loan Work With A Direct Lender

by Credit Faire September 24th, 2020

A direct lender works directly— as the name suggests. The main function of a direct lender is that it cuts the middle-man out and provides all loan services in-house. This involves everything from studying your credit to processing the final check. There are a lot of reasons to use a direct lender when you need a loan. Maybe you’re looking for a mortgage, a loan for a new vehicle, or maybe like most people who come to us, are just in a jam and need a quick way to get their bills paid. 

If you’re stuck in a cycle of debt, and unexpected emergencies come up, we know that it can be hard to make ends meet. A direct loan might be the solution you’re looking for. It’s natural to be confused if you’ve never worked with a direct lender before. Here a few FAQs to help clear your queries and become an informed consumer.

Credit Fair-E Direct Lender FAQs

A good way to understand how loans with direct lenders look is to read through some of the answers to the questions that we get asked about all the time. 

What Are the Benefits of Working with a Direct Lender?

The biggest advantage of working with a direct lender, as opposed to a broker, is that you know who you are working with and you have the guarantee that they will never sell your information to other companies that want to make loan offers to you. 

It’s also a lot more convenient than having to go through loan matching services and waiting for them to find you a service provider. To work with online direct lenders like Credit Fair-E, all you need is an internet connection and your relevant documents. The process will only take a few minutes to complete and you’re likely to get a much faster approval than non-direct options. 

What Will I Need for A Direct Loan Application?

Direct lender loans typically have a very simple application process. Here are the few things you need to have on-hand when filling the application.

  • You must be 18 years of age or older
  • Social Security Number
  • Driver’s License
  • Employer Information- this includes employer name and number, pay frequency, and monthly income. 
  • Home address
  • Phone number and email address
  • Bank account information (routing number and accounting number)

How Is a Direct Lender Different From a Payday Lender?

Direct lenders like Credit Fair-E are installment lenders. This means that their loans, like auto loans or mortgages, allow repayments in installments. When you choose to use us when you need a direct oan, we only give you what we know you can pay back.

On the other hand, a payday lender will ask you to pay interest and full loan principal amount all at once. This usually puts a lot of strain on borrowers and they usually end up reborrowing just to pay the loan back. As you can see, it’s usually a tactic to trap people in a cycle of debt. They are specifically designed to make them extremely difficult to pay back. 

How Much Is the Monthly Payment?

The monthly payment is usually dependent on the loan amount. Most trusted direct lenders will alter the loan amount and payments to fit your budget and allow you to pay back your loan without the need to reborrow.

Does a Direct Lender Report to Credit Bureaus? 

Almost all trusted direct lenders will report payment history to one of the three major credit bureaus. What this means is that unlike payday loans, you can use direct loan payment history to build/rebuild your credit. 

When you consistently report on time payments to credit bureaus, no matter what kind of loan, you can increase your credit score over time.

Why Credit Fair-E Is Different Than Others

A Credit Fair-E loan is your best option in comparison to a payday loan. We take pride in making sure our borrowers stay out of the debt cycle and receive fast and fair installment loans when they are needed. More than other lenders, it’s our mission to help you get the money you need when you need it, but also help you on your way to financial freedom. We’re a direct lender that will only let you borrow what we know that you can pay back, so that you don’t get stuck in a debt cycle that you can’t get out of.

We are licensed in Kentucky and Ohio to provide top-class service, with loan approvals taking just a few minutes. We understand that our consumers often require funds in cases of emergency, so the money is deposited into your account as soon as the next business day. Reach out to us today if you have more questions. Start your easy application process today to build your credit score and ensure better financial health.

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