Having an emergency fund set aside is the golden rule of personal cash finances. The only problem is, you may not always have enough in it to help you with your next emergency. Maybe you’re late in making one, so you don’t hit your savings target before you need to rush your cat to the vet. Or perhaps you just drained all your savings to cover an unexpected round of x-rays after you break your foot. So, what can you do? In an emergency, a cash advance direct lender might be a source of relief.
What is a Cash Advance Direct Lender?
This phrase is easier to under if you break it down into two distinct parts.
First, a cash advance is typically a small-dollar, short-term loan that gives immediate funds to help with an unexpected emergency expense.
It’s an umbrella term that describes quite a few personal loans:
- Installment Loans
- Lines of Credit
- Payday Loans
These financial products may work differently, but they’re all designed to help you with urgent problems.
With that out of the way, now you can focus on the second part of the definition: the direct lender.
A direct lender is a financial institution that provides personal loans independently from other companies. It won’t partner with another organization like a loan matching service, alternative lender, or broker at any step of the process.
This means a cash advance direct lender will collect your applications, review them, perform underwriting duties, finance your loan, and coordinate your payments. At no point will another company step in to help or provide capital.
What Are the Advantages to Dealing with One Financial Institution?
Reducing how many companies are involved in your advance comes with two perks.
- Simplicity: You only have to communicate with a single lender, making it easier to keep key information about your advance straight.
- Security: If you were to partner with a loan matching service, they could potentially shop around your personal information to dozens of lenders in their network. When you apply with a direct lender, you’re only sharing this info once. As long as you choose a lender that provides adequate online security, you’ll reduce your chances of accidentally exposing data.
How to Find a Trustworthy Cash Advance Direct Lender
If you’re researching online, you’ll open a new tab and type in something like this into your search bar: cash advance loans near me. This phrase will generate millions of results, which can be overwhelming.
To narrow down your options, you’ll want to compare the first five to ten results. When you do, you’ll want to pay close attention, making sure they have the following features:
- Website Written in Plain English: Broken English or overly complex writing is a warning sign suggesting the lender isn’t legit.
- License: This accreditation shows the financial institution follows important lending laws.
- Transparent Fees: Any attempt to disguise the cost of your loan is a red flag you can’t ignore. All rates, terms, and conditions should be made clear, and you should see the APR.
- Privacy Policies: Since you’ll fill out an online application, you’ll want to ensure the financial institution takes the appropriate measures to protect your data.
If your emergency fund is running on empty, a cash advance direct lender may help you in an emergency. But before you borrow, do your research. Comparing your options will help you find the best possible rates for your finances.