Loan Lenders

Shop loan products after identifying Loan Lenders

Have you ever realized there is a high probability that reason for passive lifestyle could be money; sudden financial crisis leaves you with no space for any extra expenditure. With continuous faltering of economy, running on shoe string budget has become a ritual and one tries to live through one paycheck to another. However, when there is a volcanic eruption of financial mess, we begin to think differently and try to nib crisis in the bud in the most coherent way. Definitely one does not want to get into a financial quagmire and would prefer to associate with trustworthy loan lenders.

Cheat, fraudulence and catching in a debt trap are some of the qualifying points for predatory lenders. Then, how to shop for loan products and bail oneself out of current financial mess? The best way is try to identify loan lenders and find out who will meet your needs in the most affordable way. Second before associating with a money lender, figure out which medium you want to prefer and how urgent is your need. Let’s get little deeper with each point and bring clarity on loan lenders.

1. Distinguishing on the basis of urgency and amount

This is the first most criteria, depending on urgency and amount one can decide about the source of loan lenders. Usually there are two types of loan types, known by different names.

1. Short term loans/ unsecured loans; this term is best suited when there is an urgency and amount is also not very big. There is no documentation, faxing or credit check; once the application is approved money is directly transferred to your account. It is an unsecured loan type as there is no mortgage or collateral. The duration of the loan is not more than 14 days to one month unless and until specified. It is directly linked with your payday check and repayment is automatically made the day borrower gets salary check.

There are many loan lenders either online or sitting in brick and mortar shop to provide loans to customers.

2. Long term loans/ secured loans; this loan is usually taken for a longer duration ranging up to an expanse of 15 to 20 or so. Amount is big and generally taken for property purchase or for buying car or for wedding or studies. Student loan is a very common and most sought after category under this type of loan. Since amount of loan is big, hence there is documentation, collateral and other strict formalities to meet.

This loan is usually taken from financial institutions or banks or sometimes online from a reputed money lender.

This was one of the criterions on the basis of which you can make a choice of a loan lender. There is a high competition in this market, so one can browse their loan products and costing before circling on a particular lender.

2. Distinguishing on the basis of medium

With every generation, there is a new addition and an advanced technology. Internet is giving a tough competition to traditional brick and mortar financial institutions. Someone with bad credit record or not enough proof to procure a short or long term loans prefer to go online and get a personal loan.

1. Brick and Mortar financial shop loan lenders; a borrower has to visit the shop and learn about loan products available in the market. It is time consuming and there is no surety of loan approval. Though a good choice for long term loans, but it is definitely not a choice for quick and fast loan.

2. Online loan lenders; a borrower can also visit online shops for loan products. In fact it is a very good choice for short term loan products and for those who do not have any documents ready for loan approval. There is a very little chance of rejection and in most cases loans are approved online.

Thus, we see these two mediums can help you with enough money for future purpose. However, do not forget loan is always a borrowed income and has to be repaid. Especially about short term loans, interest rate is really very high, so one needs to be extra careful and cautious.

3. Distinguishing on the basis of interest rates

Affordability is definitely a very important aspect. Whether you approach a brick and mortar loan lenders or an online loan lender; compare the rates and their interest level. Once you get a hang of the situation, then move on to next step in your endeavor to search a trusted loan lender.

4. Distinguish on the basis of loans from congregation of financial portals or from a direct payday lenders

This is a very important feature as there are number of portals which represent congregation of money lenders. Other is direct payday loan lenders, who operate online and have several loan products for end customers.

1. Financial Portals, it is a one stop shop where many lenders are part of the group. These portals occasionally update their lists of loan lenders and add or subtract according to popularity. Here a borrower gets a chance to easily compare the rates, browse through the loan products and decide on a lender. There is a singular online form for all the loan lenders and your personal information is shared by all.

2. Direct payday lenders, this is more like working with trust. Here a borrower associates with a single lender. There is a surety of protection of personal data, no sharing with a third party. There are quite a few direct lenders operating online, you can read their reviews and get feedbacks for applying for loan.

5. Distinguish on the way of approach

Idea is to associate with a trustworthy loan lender who can help you come with a solution and not with a predator, who wants to pull you in a debt trap. To find their commitment, check for following:

1. Licensed or not, it is generally on the home page of a lender’s site

2. Look for security encryption seal

3. Read the disclosure agreement

4. Friendly customer care service or not

5. Go for reviews and word of mouth. It certainly helps

These are some of the criterions which can definitely help you in associating with a good loan lender with affordable interest rates.