As part of our mission as an online provider of personal loans, LoanNow seeks to empower prospective borrowers to enhance their long term financial futures, in addition to supplying much needed cash now. The brief glossary of money lending terms below should shed light on loans, how they work – and why LoanNow is better.
When you initiate online bill payments or cash transfers, they are often processed through the Automated Clearing House (ACH) system. Many times paper checks are converted to electronic transactions through the ACS system which largely eliminates the “float” that many people counted on to prevent overdrafts. Online money lending companies like LoanNow also process loan disbursements and payment collections through the ACH system, avoiding the delay and possible misdirection of paper checks.
When money lending companies have doubts about prospective borrowers but agree to extend credit anyway, those borrowers may be required to provide collateral as a guarantee against default, or failure to repay their loans. Banks and credit unions often require collateral for borrowers with questionable credit; LoanNow never does.
Money lending companies like banks routinely conduct credit checks on prospective borrowers through one or more of the main three credit reporting bureaus: Equifax, Experian and TransUnion. Their lending decisions are largely based on FICO scores generated from information contained in those credit reports. By contrast, LoanNow looks beyond your FICO score and credit report to consider your entire financial profile. That’s how we are able to approve many borrowers turned down by banks while keeping default rates low.
Many borrowers seek online money lending companies for the convenience and privacy of applying at home, on their own schedules. But many so-called online lenders are not really lenders at all. Instead, they collect information for third parties, often selling your personal and financial data to the highest bidder. LoanNow is a direct lender. We process our own loans, and we don’t share borrower information with third parties.
Many short term money lending companies require borrowers to repay their loans in a single lump sum. When combined with short repayment periods, such loans are often difficult to repay in a timely fashion. Many short term lenders respond by imposing partial payments and rollovers – essentially refinanced loans, on borrowers. Because of rollovers, many borrowers remain in debt for months, if not years, and eventually repay many times their original loans before they are finally paid off. LoanNow does not require borrowers to make lump sum payments – and we never do rollovers. That’s just one reason why LoanNow is the smart choice for personal loans!