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Online & Conventional Direct Lender Loans - How to Pick What’s Better


With regulations becoming stronger each day, what are the situations in which online or conventional direct lender loans have an upper hand over the other? – PowerPoint PPT presentation

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Date added: 23 June 2020
Updated: 23 June 2020
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Provided by: ezpaydaycash
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Title: Online & Conventional Direct Lender Loans - How to Pick What’s Better

Online Conventional Direct Lender Loans- How
to Pick Whats Better
What to Choose between Online and Conventional
Direct Lender Loans The terminology related to
loans can get quite confusing and most books,
websites and even vlogs tend to use industry
jargons or vague wording to describe most terms.
So to start of it, lets first describe what is
referred to, here, when we say Direct Lender,
Online Direct Lender and Conventional Direct
Lender. When we say Direct Lender, we, in
simplest English terms, essentially refer to an
entity you can get a loan from, which shall be
the entity that is giving you your loan money. No
brokers, no third parties are involved in such a
scenario and your loan is coming straight to you,
with no entity making a commission on it. What
we refer to as Conventional Direct Lenders
here, are lenders of loans from banks and loans
from registered individuals/companies that can be
availed through stores in your neighborhood,
pawn shops, etc. What we refer to as Online
Direct Lenders here, are lenders that operate
primarily online and are essentially
non-institutional. Banks that can offer online
disbursements of loans are excluded as their
currently their online processes mostly tend to
be an online-converted extension of the usual
conventional process. The main difference between
what we are referring to as Conventional Direct
Lenders and Online Direct Lenders, would be that
one would have to step outside their house/office
and submit some sort of paperwork or have a
pre-existing relationship where the paperwork was
done in the past, and this also possibly shall
add to the need for the borrower to look around
store-to-store in the first place, in order to
get the loan that they seek. Now that thats out
of the way, lets jump straight in. Choose Bank
Loans when theres no hurry, Paperwork is not a
problem and your Credit Health is
alright Assuming that youre not looking for a
very short term loan, bank loans, bank loans
could be the preferred choice. If you are
looking for very short term loans, we cover that
in the section where we discuss payday
loans. Its simple unless you know the market,
the safest bet in a loan is a bank loan, as long
as you can take that option. The Conventional
Direct Lenders include banks and non-bank
lenders. But to get a loan from a bank, you need
to be aware that these limitations almost always
  • Bank loans usually have long application
    processes and typically a fair amount of
    paperwork is involved at some stage. If you have
    an existing account with the bank, the paperwork
    might be lesser and in very rare cases, you might
    have a choice of an online process. Such a loan
    may tend to be more expensive than the typical
    bank loan.
  • Bank loans also typically take days and sometimes
    even weeks for approval and then deposit.
  • Its almost always the case that you would for
    some reason or the other, have to drive down to
    the bank a time or two sometimes even more) for
    completing the loan application/process.
  • If you have a poor credit score, youre likely
    not simply be rejected for a bank loan.
  • Loans form a bank without a collateral may be
    available only to people with a good credit
    score and good financial health.
  • The advantage of the bank loans is that the
    interest rates are very frequently lower and that
    banks are usually the most reliable companies as
    long as its certain that your loan is getting
  • Choose Online Direct Lenders if Bank Loans arent
    Right for you
  • When youre in a need for money, and a bank loan
    is not an option since youre in a hurry or do
    not wish to run around for paperwork or have
    been rejected by a bank or are in any other
    scenario that deems a bank loan not the right
    choice for you, you have to look for registered
    lending individuals or companies.
  • In the earlier days, Direct Lenders apart from
    banks, were almost exclusively approachable
    through brokers or pawn shops and some other
    stores/offices that lenders operated from. It was
    hard and probably impossible to know how a
    lender could be trusted. It was equally hard to
    compare the deals that these lenders offered. To
    add to this, the regulations were not stringent
    enough for it to be safe to borrow money from
    such lenders, in most states.
  • However, in the recent years, a lot of options
    have become available online. As this helped the
    business grow, the industry became significant
    enough to attract stronger and better
    regulations. To add to that, the online platform
    being easily accessible to everyone, made the
    lenders (especially the ones who operate
    primarily online) work more professionally, or
    suffer from negative online comments and
    feedback. This is the key reason why it is wise
    to choose reputable Online Direct Lenders, if a
    bank loan is not the right option for you.
  • In short the key advantages of Online Direct
    Lenders are
  • Tend to offer quick and easy solutions, often
    without a need for paperwork
  • Have quicker application and approval processes
  • Are often more trust-worthy than non-bank
    Conventional Direct Lenders
  • Tend to offer more competitive deals
  • Ease of access and application every step
    related to the loan can often be done completely
    online, even from your mobile device
  • Some loan options are available to borrowers with
    bad credit history and some can come without
    even a credit check process
  • Loans can be very flexible at times available
    with very precise amounts that you need and at
    times also available in very short term options
  • Aware consumers can easily look for signs that
    show that the online lender is genuine Eg. BBB
    Accreditation, genuine contact details available
    on the website, etc.

A Note about Payday Loans Payday loans are
available from some non-bank direct lenders.
There are typically intended to be very short
term loans, where you borrow a small amount of
money from the lender and pay the lender back
with added charges, in a matter of 7-14 days
(sometimes up to 30 days), ideally on your next
payday. They usually have a high percentage of
interest in terms of APR, but if you need money
just for a short time, the absolute amount that
you end up paying as a charge for borrowing the
money, might be smaller than that of a longer
term loan. As above, Payday loans being non-bank
products, are preferable taken from trustworthy
Online Direct Lenders.
Bonus Tip What if youre Previously Rejected and
Still Need a Loan? If youre rejected for a loan,
this might reflect on your credit history in
ways. Some direct lenders specifically provide
and option to borrow a 2nd chance loans, designed
to serve your needs. Read on till the end to
find a recommended link.
Conclusion To wrap up, we could summarize that
the strict and elaborate bank loan is worth it
when its okay to wait for one and you qualify
for one. You as a borrower, would be the right
person to judge if the bank loan isnt right for
you. In such a case, Online Direct Lenders are
the better bet over Conventional Direct Lenders
and there are rather straightforward ways to tell
apart trustable online lenders from fake ones.
It is important to do a little homework before
you finalize a loan. EzPaydayCash is a
recommended service if youre currently looking
for a direct lender of online payday loans. They
are best known for their service as direct
lenders of 2nd chance payday loans.