Getting a Loan from a Non-Traditional Lender
Written by: John Mussi
Sometimes you might find that a traditional lender such as a
bank simply can't meet your loan needs. Perhaps the interest
rate that the bank offers is simply more than what you're
wanting to pay, or you might not be able to reach the bank
during normal business hours in order to submit your loan
application. Regardless of the reason that traditional banks are
unable to help you with your loan, you need to find an
alternative lender that can process your loan and get you the
money that you need.
Luckily, there are a large variety of non-traditional lenders
that can not only get you the money that you need but can offer
competitive if not better interest rates than your local banks.
Below you'll find information on some of the alternative lenders
available, as well as information of finding the one that's
right tog et you the loan that you need.
Finance and Loan Offices
The most common non-traditional lenders are finance companies
and loan offices. Unlike traditional banks, these companies
exist solely for the purpose of providing loans to
individuals... even individuals with poor credit who might not
be able to get a loan at a traditional bank. Most of the loans
that are provided from finance companies and loan offices are
secured loans, meaning that they require some collateral to
secure the loan and guarantee repayment.
Some specific types of loans, such as automotive financing,
allow the purchased item to serve as collateral for the loan so
that additional collateral is not required.
If you're in the market to buy a new house or other piece of
real estate, you might want to consider a mortgage company
instead. These lenders specialize in home and property loans,
using the purchased house or property as the loan's collateral.
Mortgage companies are often willing to work with individuals
who have a variety of different credit ratings, so that even
those individuals who have had credit problems in the past will
have an opportunity for home ownership.
A variety of online lenders exist, offering loans for just about
any purpose that you can imagine. Many physical banks, lending
companies, and mortgage lenders have an online presence, but
there are a variety of lenders that exist with only an online
presence. The loans offered by these online lenders can often
carry a better interest rate than an individual might expect to
be able to get, due at least in part to the reduced cost of
doing business exclusively online.
In addition to the potential for lower interest rates, online
lenders often offer faster loan decisions and more options when
it comes to repayment of the loan.
Finding Your Loan
When you've begun exploring your various loan options and are
ready to apply for a loan, it's important to take the time to
shop around and make sure that you get the best deal that you
can. Visit several different lenders, requesting loan quotes
from each one, and take the time to get online and request loan
quotes from several online lenders as well.
Carefully compare the loan offers that each lender gives you,
making sure that you take the interest, repayment terms, and any
other loan-specific terms and costs into consideration to find
the loan that is the best overall instead of simply the one with
the lowest interest rate.
By taking the time to shop around and compare loan quotes, you
are much more likely to find the best deal for a loan that you
otherwise might have missed.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the www.directonlineloans.
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