A direct personal loan is a loan that is offered to the borrower directly from a lender, instead of going through a third party, such as the bank. A direct personal loan, also known as a personal loan, is given by financial institutions for the sole purpose of helping individuals and families pay for unexpected expenses and buy necessary items they could not otherwise afford. Most of the time, loans are “called” and need to be paid back with interest immediately or within a few days. Because of this, people use these types of credit to make larger purchases that aren’t usually taken care of with just a credit card.
How Do Direct Personal Loan Work?
A direct personal loan is essentially a short-term loan (lasting from one month to three years) that has a set plan for repayment. These types of credit will usually come with interest rates as well as certain fees such as late fees. This makes insurance for bad credit loans very important to obtain. Since these loans can’t be paid back until at least six months after they are taken out, it is important to make sure the funds are there when it comes time to pay them back. Direct personal loans are usually obtained through a financial institution, meaning that you do have to meet some eligibility requirements before you’re approved for one. Usually, unless you have an established banking relationship with the lender, you will have to prove your ability to repay the loan through things like proof of income and other documents.
Loans for a shorter term can be in the thousands of dollars, with long-term loans starting at approximately $10,000. The criteria used to determine how much money a borrower is approved for vary significantly between lenders and depend on a variety of factors, such as how long the lender has been in business, risk assessment properties, and personal information about the borrower.
How to Apply for a Direct Personal Loan?
Unless you already can apply for a direct personal loan with your existing bank or credit union, you probably won’t be able to apply for one online. Unfortunately, many financial institutions like to verify income and credit history before they issue a loan. This doesn’t mean you can’t obtain one! An easy way to get started would be to contact your nearest credit union or other lending company that will let you apply for a loan in person.
Characteristics of Direct Personal Loan
A direct personal loan can be applied for directly with the lender of your choice. As a self-employed borrower, you should plan to pay higher interest rates, but you may still qualify for loan amounts in the $5,000 to 10,000 range. Like most other types of loans, consumers must apply for direct personal loans and then wait for a phone call from the lender or its representative that provides approval to proceed with the application process.
Conditions on all direct personal loans vary greatly, but will require a minimum of good credit and can usually be as high as 700. Most are issued through lending companies like peer-to-peer lending companies. Usually, you’ll be able to borrow between $1,000 and $25,000 through these types of lenders, and those you currently have loans with may not be one of them. As with most types of modern-day loans, requirements for direct personal loans will also include a borrower being 18 years of age or older, but they can also include limitations on who can and cannot get these types of loans depending on where they are offered. It is important to check with the direct personal loan company or institution offering the loan you’re interested in to make sure it is geared towards your state or county.
Options to Help You Qualify for Direct Personal Loan
Direct Personal Loans from money lenders can be an excellent way to consolidate debt that you are carrying to lower the amount that you are paying every month. By using a single loan, you can end up lowering your monthly payment by almost $1,500 a month while also making the whole loan that much more manageable for you to pay off. This will require a credit score of about 660 or higher to qualify, but this is not difficult for someone who has mostly paid their bills on time and is in good standing with their creditors. If you’re interested in learning more about how this can help you, it’s best to speak with one of our loan experts by giving us a call today.
Cash Advance Loans Payday advance loans are fast and easy ways to obtain cash when you need it, provided that you can make significant payments back within a week or two. They rarely have any fees associated with them and are generally simple peer-to-peer loans where you agree to pay for the money someone has lent to you before getting it back. Unlike many traditional loans, these cash advances are called advances because they don’t require monthly installments or interest payments. The other advantage they have over cash advances is they are also capable of being used without affecting your credit ratings like a wage garnishment or other means of debt collection does.
Personal loans can provide a way for borrowers to meet personal, and sometimes business needs. For self-employed borrowers, interest rates for these loans may be higher than for traditional loans, but the rate should still be lower than that of some other types of loans.