Financial emergencies happen to everyone. Perhaps you need to cover unexpected medical bills or take a costly trip to the auto repair shop.
Unfortunately, these urgent expenses can’t always wait until you get your next paycheck or save more money. Even if you can hold out for a while, you could end up facing late fees or harassing calls from creditors about missed payments.
That’s where direct lender online loans come in. If you’re short on funds and need money now, one of these short-term loans could help tide you over until you get back on your feet. These loans are quick and easy to get, making them ideal in a pinch. Plus, many online lenders will work with you regardless of your credit score or financial situation.
A direct lender online loan is a short-term cash loan funded through direct private lenders rather than loan brokers or brick-and-mortar banks. Direct lenders like Jora have an easy online application process and can disburse funds in as little as 24 hours.
Since the process is so fast, many people use these online loans for financial emergencies. Just like with personal loans, you can use the funds for various reasons. For example, the money could pay for things like home repairs, legal fees, a family vacation, or a honeymoon.
Most online direct lenders have minimal requirements, which makes them more accessible to borrowers who can’t get approved for financing elsewhere due to poor credit or spotty credit history. Online loans may also appeal more to those who live in rural areas and don’t have other options nearby.
There are several types of online cash loans, including:
Borrowers usually repay these loans in monthly installments. You could also pay it off all at once, depending on how much you owe.
Keep in mind that these cash loans typically come with high interest rates. Combined with short repayment terms, these high rates can make direct lender loans more expensive than traditional options. If you find yourself regularly taking out short-term loans, it may be a sign of an underlying issue (i.e., difficulty budgeting). It could even lead to a debt trap if you’re not careful.
With that said, these loans can work well as a temporary solution when you’re in a financial pinch or need cash fast. Just make sure you have a plan and a budget to pay it back on time.
Taking out an online loan through a direct lender is fairly simple. Here’s how it usually works:
After the money is in your account, you can use it as intended. Just make sure you repay the loan on time to avoid any additional charges like late fees. Depending on the terms, you can either pay in a lump sum or monthly installments. Also, avoid taking out more than you need so you don't have any trouble repaying the loan.
Like bank or credit union loans, online direct lenders can approve and finance loans. However, they do stand out from traditional lenders for the following reasons:
One potential downside is that direct lenders usually offer smaller loans than banks. However, this depends on the online lender and the individual’s credit score and income.
Direct lender online loans are convenient and accessible to people – regardless of their location or credit score. If you need money now and want a hassle-free way of getting the funds you need, these lenders could be the way to go.
With that in mind, here are the main benefits of getting an online loan through a direct lender.
When you apply through a direct lender online, you can expect the application to be entirely online and simple. Even if you live somewhere far away from traditional lending services, you can still get funding – and quickly. All you need is access to a secure internet connection.
Direct lenders use their own cash to finance their loans. They also have unique eligibility requirements. Because of this, they can verify and approve an application and disburse funds quickly. This fast process reduces the stress of obtaining financing and can help borrowers experiencing short-term financial hardship.
There are many ways to get funds quickly online, such as through online loan connection services or providers. These services act as the middleman between the borrower and the lender to help folks get the financing they need. The downside is that these services are not always regulated, which makes them a riskier option than direct lenders.
Direct lenders must comply with federal and state regulations, meaning they are held accountable for their operations and have limitations on what they can legally do. Keep in mind that lending regulations vary by state, so the rates and terms you receive may differ based on where you live.
Direct lenders are usually more accessible to people who need a cash loan fast. These lenders are especially beneficial to those who live in rural areas or don’t have the time to wait for more traditional forms of financing. Plus, many direct lenders are willing to work with people who were denied other forms of financing due to poor credit or other reasons.
Some direct lenders offer pre-qualification with the initial application, which lets you check your potential rates and eligibility without committing to a loan.
Prequalification is particularly helpful for people with poor credit. It can help them find the financing they need without causing further damage to their score. The actual loan application may require a hard inquiry, which can affect your credit score, though.
While these loans should never be a long-term solution, they can help if you’re short on cash. Say, for example, you lose your job and need to make ends meet this month. A cash loan could help bridge the gap and prevent late fees or damage to your credit score.
Many direct lenders clearly list “no fees” on their website - typically on the main page. They’re also upfront about which fees they do charge – like interest rates, prepayment penalties, service charges, and origination fees. Indirect lenders, meanwhile, may have hidden fees that you only find out about late into the application.
Although direct loans may be more affordable than other options, that doesn’t mean you should rely on them. Some short-term loans have high fees – such as payday loans, which have an average APR (Annual Percentage Rate) of nearly 400%. Some of these loans have an APR of over 700%.
If you can't repay what you owe, you could end up in a cycle of debt that lasts for months or years. So, make sure you're prepared for the overall cost: the principal balance plus any fees.
Online direct lenders sometimes offer flexible repayment terms, especially compared to what you’d get with a traditional lender. The terms can range from a few weeks to several months or beyond.
Many direct lenders offering personal loans have free online resources that help you learn about personal finance. These include things like informative videos and articles about loans and how they work.
Online lenders also often have free calculators that break down a potential loan and show you what it will truly cost. You can use this information to explore how the loan fits into your budget.
Although online direct lenders don’t always have storefront locations, they still offer customer support via phone, email, online contact form, or live chat. This makes it easy to contact them if you have any questions or concerns. Depending on the lender, they may also have extended business hours or be available on weekends.
If you need to contact Jora with any query or concern, you can do so Monday through Saturday via phone. Or you can fill out an online form.
Not all direct lenders are created equal. Some offer loans in higher amounts or have stricter eligibility requirements. Things like online reputation and customer support vary, too. With that in mind, here are the main things to keep an eye out for when choosing a lender.
There are different types of online cash loans, including payday and title loans. Although you can use all of these to pay for something unexpected or small, some direct lenders only offer certain types of financing. Check what the lender offers and make sure it works with your situation.
Although direct lenders often have lower eligibility requirements, your options may still be limited based on certain factors, such as:
Your credit score depends on several factors, including payment history, credit utilization, and credit mix. The better your credit score, the higher your borrowing power and the better your terms. Here are the ranges for FICO:
Many direct lenders will consider your complete credit and financial profile when making a lending decision. However, some don’t check your credit at all.
Even if the lender doesn’t require a credit check, you should still keep track of your score. After all, you never know when you might need to apply for another form of financing, such as a mortgage or line of credit. If possible, get a copy of your credit report and review your score before applying for a loan.
Most small online loans – including payday and title loans – don’t allow for a co-signer. However, if you’re applying for a larger loan and don’t qualify on your own, check if the lender accepts co-signers. If they do, this could improve your chances of getting the loan you need.
Online loans from direct lenders are often flexible to help borrowers who need money now. Many also have customized terms and amounts based on the individual’s situation.
Interest rates can also vary widely. For example, a personal installment loan from SoFi has a fixed APR of about 15.71% with good credit and a 60-month term. A title loan, meanwhile, has an average APR of 300%.
Check what the lender offers and see if it fits your needs. If it’s not an emergency, shop around until you find the best option for you. In the case of an emergency, choose a reliable lender that is transparent about its rates and terms.
One of the main reasons why people go through direct lenders for quick loans is because they have convenient applications and fast funding. Check the lender’s homepage or FAQ page to discover how long it typically takes to receive cash.
Some direct lenders take longer to approve applications, especially if they need more information or if they have to verify something. If you need money immediately, go with a lender that can approve and disburse funds within 24 hours. Lenders typically outline the application process and any timelines. For example, Jora asks that you submit a simple online application and choose how much you need. Depending on what time you apply, you could receive funds the same day.
Some direct lenders charge additional fees, such as:
See if the lender has any of these and calculate them into your budget before taking out a loan.
It’s always wise to check the lender’s online reputation before sharing any information or applying. Check what people say about them on websites like the Better Business Bureau (BBB) and Trustpilot. Look out for reviews that mention:
If you can’t find the reputation of the lender you want to work with, or if they don’t seem to have any testimonials, it could be a red flag.
Even though they’re online, direct lenders should have a customer support team available to help you throughout the loan process. Find out where, when, and how to contact the lender before doing business with them.
Jora Credit is the Lender. Jora Credit operates under state specific companies, licenses, and rules for the states that it services. Jora Credit does not lend or arrange loans or lines of credit in all states. Please see What it Costs for the serviced states and applicable terms.
Scams are, unfortunately, all too common in the online lending industry. Here are some of the main signs that the company you’re considering is a scam:
If you think a direct lender is a scammer or want to submit a complaint, you can do so with the Consumer Financial Protection Bureau. You can also contact your state’s Attorney General's office.
Direct lenders are often willing to work with people with bad credit or who don’t qualify for traditional financing. The best ones typically have very few or transparent fees and offer reliable funds when you need them. Plus, they can make decisions quickly since they control the lending and funding process.
If you’re looking for a hassle-free experience and quick funding, consider applying for an online loan through Jora Credit. Jora’s online application process is simple and only takes a few minutes to complete. It’s also streamlined to be as easy as possible so eligible applicants who need cash fast can get it.
Loans range from $500 to $4,000 and may be available the same day you apply (if you approved and accepted your loan before 10:30 am CT on a business day).
If you have any questions about the process, feel free to reach out. A customer support team member will be happy to review the process with you and answer any questions. Otherwise, apply now!