Not everyone relies on banks or credit unions to borrow money anymore. These days a lot of people are turning to private lenders for loans of all kinds. There are a multitude of reasons to consider this borrowing option. When you take the time to learn about these benefits, you will be able to make the right decision. No matter what type of loan you need, there is a good chance that a private lender can help you out in a big way.
One of the best reasons to borrow from a private lender is because you can get the money you need a lot faster. Private lenders tend to disperse funds to approved individuals within 24-48 hours, which is a lot quicker than most banks. If you were to get a traditional bank loan, you could wait up to 2 weeks to receive your money. Even just getting an initial response from the lender is much faster when you go the private route. Some banks can take up to a week to give you a response to your application.
Everything is Done Online
A majority of private lenders are based online, which is a good thing for many reasons. This makes the process of getting a loan much more convenient and streamlined. You won’t have to deal with any annoying physical paperwork that you then have to turn in. All you have to do is find a lender and submit an application on their site.
The whole process takes less than an hour. It’s also very simple and straightforward with no frustrating extra steps to follow. You will be guided through everything step by step, so there’s no confusion whatsoever. If your application is approved, you will most likely be notified via email. You’ll receive a digital copy of the loan contract to sign. Make sure to look it over very carefully before signing.
Your Credit Won’t be a Big Deal
You will quickly find that most private lenders don’t really care all that much about an applicant’s credit score. Instead they look at other things, like your job history and income. You can easily get a loan from a private lender if you have bad credit. The fact is that a lot of banks won’t even consider giving someone a loan if they don’t have a near perfect credit history. This is just one of the reasons why so many people are turning to private lenders for loans. If you have been turned down by a bank, this is the next logical step to take.
There are Some Amazing Deals to be Had
When you start shopping around and looking into your loan options with private lenders, you’ll discover many great deals. The most effective way to get a good deal on a loan is to closely review your options. You can do this by prequalifying with different lenders and looking for ones that have a good overall reputation. Some private lenders are more flexible than others when it comes to matching their borrowers’ needs. Despite what you might have been told in the past, not all of these lenders are out to rip people off.
The average private lender charges fewer penalties, so you won’t get charged anything for prepayment or early repayment. If you want to pay off your private lender loan early, you can do so without facing any negative consequences. While paying back your loan early might not do anything to improve your credit, it is still a good idea. There will still be a penalty for being late on your loan, but that is just to be expected.
The Personal Touch
Many private lenders place more emphasis on taking care of their customers than big banks. This means that you will likely be able to get the help you need with minimal hassle. Dealing with banks can be incredibly frustrating for many reasons, which is another reason why private lenders have become so popular. You’ll discover that a lot of these lenders make a point to provide 24/7 customer support via live chat, email chat and even telephone. The better the customer support is, the easier it will be to get answers to any questions or problems you might have.
Borrowing from a private lender is a good idea for many reasons. If you are currently in need of money, you should at least think about this option before deciding. Getting a loan from a bank can work, but it’s not nearly as convenient or efficient as the alternative. Private lenders tend to care about their customers more. There are tons of these lenders to choose from, so you’ll need to do some research before deciding who you want to get your loan from.Read More