LoanNow – The Trusted Online Lender When You Need to Borrow Money
Sometimes in life we experience a time of financial difficulty and need to borrow money. Whether it is an unexpected financial emergency or a planned upcoming expense, the task of figuring out the best lender for your situation can be a tough one. There are many things to consider when choosing the right lender to borrow money from, like whether to use a bank or try asking friends and family members first.
When you’re dealing with an urgent financial situation, you oftentimes can’t afford to wait weeks for a bank or similar lender to make a decision. But oftentimes, the need to borrow money fast can lead to decisions that can jeopardize your financial future. It is important to know all of the information you can on each of the different options available.
Is a Credit Card Cash Advance the Answer?
With a credit card cash advance, you can borrow cash from the nearest ATM. But unlike purchase transactions, credit card cash advances have no grace period. The APRs for credit card cash advances are also usually significantly higher than the APRs for purchases. If you carry balances on your account, you could be paying for your cash advance months or even years after you’ve spent the money.
The Bank Loan Blues
Back in the day, bank loans represented one of the few means available to borrow cash. Today, bank loans still make up the majority of mortgage loans and car loans. For borrowers with excellent credit and abundant assets, bank loans often feature low interest rates and attractive repayment plans.
But for borrowers with less than ideal credit, bank loans are not realistic. Even if you were to be approved, you may still be required to provide collateral or a credit worthy cosigner as a condition for that approval.
Likewise, bank loans are often not a viable choice for dealing with financial emergencies, even for borrowers with top rate credit, because of the time it often takes to actually be funded. Even if you have excellent credit, you still have to go through a long process involving lots of paperwork and then wait days, sometimes even weeks for a response. If your credit is average, you may go through the entire process only to be denied. That’s just wasting time!
The Problem with Pawn Shops
Pawn shops lend money with no questions asked – but with a catch. Borrowers must temporarily forfeit personal possessions as collateral. What’s worse, pawn shops usually only lend about 25 percent of the value of the property that was surrendered as collateral. Plus, the loan must be repaid in full within 30 to 60 days or borrowers lose their possessions for good.
People with bad credit may commonly find most other lending sources are not available to them, forcing them to seek these non-traditional methods. Unfortunately, that makes them easy targets for some pawn shops to capitalize on their misfortune, since they are desperate to borrow cash but cannot be approved through other lenders. If you are considering using a pawn shop for your loan, you must be certain that you will be able to pay that loan back in full (plus interest) on time or risk losing your property for good.
Getting Trapped In The Payday Loan Cycle
Many borrowers with bad credit find that most lending sources are closed to them. Sadly, many payday lenders capitalize on these people who cannot get approved elsewhere so they become desperate to borrow cash. Payday lenders combine high interest rates, a demand for payment in full and short repayment periods which often end up costing the borrower much more than they bargained for.
Payday loans are exactly what they sound like – you’re expected to repay the loan whenever you receive your next paycheck or other scheduled payment. If you’re paid every week, you could be facing your due date in as little as 10 days! If you can’t repay your loan that quickly, and many borrowers cannot, that is when the serious consequences begin. That’s when a majority of payday loan borrowers end up trapped in a vicious cycle of partial payments and rollovers that keep many borrowers in debt for months, and sometimes for years.
The Convenience of an Online Lender
Thanks to the Internet and our modern day technology, it is now possible to borrow money without even having to leave the privacy of your own home. By surfing the web and doing a little research, consumers may find one of the more legitimate online lending brokers. But don’t be fooled – these organizations aren’t the ones that will actually be extending a loan offer to you.
These brokers make it possible to borrow money online by allowing people the ability to review a variety of lending companies all at once. From this list, consumers can choose a potential match that will accommodate their individual needs. Borrowers submit their initial applications to the online lending broker, which serves as an aggregator that collects the borrower’s information to distribute to a select group of lenders. Borrowers with good credit often receive multiple loan offers, but borrowers with marginal credit may only receive one loan offer or sometimes, none at all.
Unfortunately, these loans are often out of reach to borrowers with poor credit, which is an important factor to consider if you need to borrow money and fall into that category. Additionally, some borrowers feel squeamish about sharing personal and financial information with third parties.
In many cases, sensitive financial and personal information is sold to the highest bidder, leaving borrowers vulnerable to SPAM, scams and identity theft. Borrowers “lucky” enough to encounter a direct payday lender often find that their loans are administered by companies based on Native American enclaves or overseas, out of the reach of state legislation, federal jurisdiction or both.
Peer-to-Peer Lending Works for Some
Peer-to-peer lenders allow people to borrow money online through the crowd funding model. Applicants must first undergo a screening process which eliminates anyone with a FICO score below the mid-600 range. Applicants who pass the initial screening must post detailed profiles that include personal as well as financial information on the peer-to-peer website.
Potential lenders are drawn from the general public, and have the option of funding some, all or none of a particular borrower’s request. Borrowers only receive their loans if and when their requests are fully funded. And there is no guarantee of that.
Peer-to-peer lending websites can be the answer for many people needing to borrow money, but as mentioned before, only if you have a credit score that is in the upper 600 range or higher. The one downside is that many of these sites can be especially intrusive because they require prospective borrowers to post semi-public profiles for scrutiny by the general public.
While it’s usually better to cut rather than borrow, sometimes life throws you a curve ball and it becomes necessary to borrow money. By handling your loan responsibly, you can not only deal with the financial issue at hand, but protect your long term financial future.
LoanNow understands that sometimes you just can’t wait and when dealing with a financial emergency, you need to borrow money fast. Our online application can be completed in the privacy of your own home. You’ll receive a response within minutes and if you’re approved, your cash will arrive by direct deposit as soon as the next business day.
With LoanNow, there is no need to put your personal property or your long term financial health on the line in order to borrow cash. We never demand collateral, regardless of your credit status. Repayments are structured in manageable monthly installments – NO lump sum repayments and NO rollovers.
LoanNow approves many borrowers that banks have turned down. Even if your credit isn’t perfect, we may still approve you. That is because at LoanNow, we believe that you’re more than your FICO score and we look beyond your credit score to consider your entire financial profile.
LoanNow is a direct lender based in California, with customer service available by email and phone. The LoanNow team handles your loan from application to repayment, which means we never share your information with third parties – and you don’t have to post a profile on a semi-public website. We’re also accredited with the Better Business Bureau and have an A+ rating – so you can borrow with confidence.
The next time you need to borrow money, make the decision to check out LoanNow for yourself. You will discover why so many savvy borrowers already turn to LoanNow for their personal lending needs.