What is a Private Lender Loan in the US? : PaydayLV
One of the most frequent questions we received throughout 2021 is what a private lender in the US is and how they are different from conventional lenders. It is perfectly normal to have doubts if you do not precisely know the differences. So, here is an article to address the question, and you can decide if private lender loans are perfect for you or not!
Housekeeping - What exactly is a traditional lender
A traditional lender is a financial institution such as a bank or credit union. These institutions provide cheaper interest rates, but they generally have very strict requirements for what they would accept. They usually require a high credit score and to pledge collateral in order to approve the loans. This is frequently due to regulatory requirements rather than being a choice made by the bank. For example, you may be required to have a lengthy job history as well as excellent credit in order to be authorized even for a small loan. Although they make it hard to apply for a loan and get approved, they are often the entry points to get loans from most people.
How is a Private Lender different from a traditional lender?
Private lenders are an independent company that operates under strict government laws and have the authority to pay off loans in the same way traditional lenders would, but where they differ is that they are willing to take more risk and target to give loans to people who would otherwise not be approved for a traditional loan on the grounds of low credit score or not having any collateral to pledge. Private lenders are not associated with traditional lenders and are not subjected to the same restrictions as traditional lenders. This allows them to lend money to clients who are not at the optimum financial conditions. This comes with additional risk, and therefore, private lenders often have to compensate with higher interest rates than traditional lenders, although in the short term, the differences are quite comparable.
Nonetheless, because many private lenders specialize in giving guaranteed loans and can be applied online with very little documentation, they are quickly becoming popular, especially during emergencies or short-term financial crunches.
What are Payday loans?
One of the most popular loans that private lenders offer is payday loans. They are short-term loans often designed to be taken during emergency financial problems and to be returned after you receive your next paycheck. There are a number of instances you may consider this loan, especially when you need cash during the middle of the month or when you are trying to save up for something and short by a few bucks. Payday loans are extremely easy to apply and get approved for as they require no credit check or pledge any collateral. All you need to apply is a confirmation of stable income, a checking account by which you can receive payment, and a US citizen over the age of 18. Here in PaydayLv, you can apply for a loan online and do not need to visit any physical office. You can head over to our website, fill in the forms and put all your details, and you can get your loan approved in under an hour; it’s that simple.
Financial issues are just a part of life, and even the best of us can find ourselves needing a loan from time to time. But we all know how easy it is to miss out on one installment of a credit card and find your credit score plummeting. Although the interest rates are a bit higher than traditional lenders, the ease of access and accessibility make payday loans one of the most popular loans in town. A payday loan from a reputed private lender like PaydayLV is easy to get and completely transparent on fees, so head over to our website to get a free quote.