Financial emergencies can arise at any point in time. Most people try to save as much money as they can for a rainy day. However, it’s difficult to save money in this economy. The median income is declining, and many people find it difficult to find decent jobs. In fact, a recent survey revealed that a considerable percentage of the population was overqualified for the jobs that they were working.
In case of a financial emergency, most people can think of no other option but to apply for a loan from a bank. However, that’s not a very wise move. Banks consider a variety of different factors before granting loans to customers. After the financial crisis of 2008, banks across the globe revised their policies and requirements for accepting loan applications.
The first thing that the bank will look at is your credit score. The credit score determines the frequency with which you make your repayments. If you are making all credit card and mortgage payments on time, your credit score will improve considerably. Before granting you the loan amount, the bank will also consider your net assets, and might require collateral before granting you the loan amount.
The whole process, beginning from the filing of the loan application until the review, might take at least two weeks. Needless to say, relying on the bank to give you a quick injection of cash is not a wise idea. Instead, private lending companies such as Discovery Credit give personal loans to customers, making it easy for them to get their hands on cash quickly. Here are just some of the many advantages of getting a personal loan from a private lender.
People with Low Income Are Considered
One of the biggest benefits of applying for a personal loan from a private lender is that they consider people with low income. Most banks have very strict eligibility requirements for loan applications. You must have a minimum income before applying. What about the people who have limited income? However, private lenders consider people who have low income. Because of the additional risk that the lender undertakes, they might charge a significantly higher interest rate. You can use the online calculator in order to check the APR and the amount that you will have to pay in full. People who have adverse credit records are also considered.
Another major benefit of applying for a personal loan from a private lender is that the processing times are considerably faster. As mentioned above, banks take an average of two weeks to process a loan application. However, private lenders can process your application within a day or two. You can easily file a loan application with the required particulars online. The company will send a verification email and will also call you to confirm certain details. Once everything is done, the company will credit your account with the loan amount. If you need a quick injection of cash, applying through a private lender is a great option.