Direct Deposit Loans
If you’re like a large portion of the American population, finding ways to manage your regular expenses isn’t always a walk in the park. Once you’ve dealt with your grocery bill, housing costs, utilities, and any other recurring expenses you have on the go, there may not be a whole lot of money left over when all is said and done.
With this in mind, how would you handle an unexpected emergency? Would you have the money to deal with it? If not, what would your next move be? Well, for those of you who have planned for moments like this, the answer may be as straightforward as tapping into your emergency fund. But not everyone has the means, foresight, or knowledge to prepare one of these savings accounts ahead of time and contribute to it on a regular basis. If this is the situation you find yourself in, you may want to consider looking into online direct deposit loans.
How do you get this type of financial product online? Well, if you’re looking for a personal loan with direct deposit capabilities, or any number of financial services for that matter, you may be able to find what you seek online. Online personal loans can be a useful option if you find certain parts of the in-person borrowing process to be a challenge. Maybe it’s the travel component, or maybe you hate waiting in line, but whatever it is, an online option may be best for your situation.
What are Direct Deposit Loans?
If you apply for an online direct deposit loan and get approved, your funds will be deposited directly into your bank account (depending on the type of loan). The amount of time it takes for your funds to be deposited will depend on the financial institution you’re working with as well as your bank’s policies. What types of personal loans can fall under the umbrella of a direct deposit loan? Well, these could include things like installment loans, online lines of credit, and more. We’ll touch on these more in the next section.
Types of Direct Deposit Loans
Before you submit an application for a personal loan, it’s important to understand at least the general characteristics of the different borrowing options that might be available to you. To get you started off on the right foot, here are some relatively common types of direct deposit loans that you may want to consider.
1. Installment Loans
With an installment loan is one of the more common types of direct deposit loans out there. The “installment” part specifically refers to the nature of the repayment process. So, if you get approved for this type of loan, you’ll receive your money in a lump sum, likely via a direct deposit. You’ll pay back your loan – which will include the amount you borrowed plus interest and/or fees – over the course of a number of scheduled installments. The amount you pay from one installment to the next will generally be the same, so you’ll be able to plan these out in your budget ahead of time. You may pay off your loan over a few months or even a few years depending on the type of loan and the financial institution you’re working with.
2. Lines of Credit
While you still may receive your funds via direct deposit, a line of credit works a little differently than an installment loan. For starters, if approved, you won’t get your funds in a lump sum. Instead, you’ll be approved for a specific credit limit which you can draw funds from if you have available credit and your account is in good standing. As you pay down your line of credit, you can continue to request draws. The revolving nature of a line of credit is why it’s considered to be a form “revolving credit”. Another factor that distinguishes them from installment loans is that you’ll only need to pay interest and/or fees on the funds you draw, not the total amount of your line of credit limit.
3. Title Loans
A title loan is a type of secured loan – something we’ll touch on more later. This means that in order to qualify for the loan you’re applying for, you’ll need to agree to pledge an asset as collateral. In the world of title loans, one of the most common ones you may come across is a car title loan. In order to qualify for one of these types of personal loans, you’ll need to put up your car as collateral. This means that if you can’t make your loan payments, there’s a chance that your car gets seized by the organization issuing the loan.
Why would you risk losing your car? Well, if bad credit is your main roadblock when it comes to getting approved for a personal loan, you may have an easier time getting the money you need with a title loan. Because the loan provider has some assurance that they’ll get something of value out of the interaction even if you default on your loan, they may be willing to overlook a spotty credit history. Just keep in mind that the risks of this type of loan are high, so you should only ever consider this as a last resort for an emergency, and if you know you’ll be able to pay back what you owe.
4. Credit Card Cash Advance
If you need a direct deposit loan to help you out in a pinch, one option may be to get a cash advance via your credit card. This will allow you to use your credit card at an ATM in order to get cash. There are a couple of important things to keep in mind before doing this. For starters, the interest rates on the cash you withdraw is going to be high, and you may need to pay some additional fees. Secondly, unlike the regular transactions you put on your credit card, the interest built up on a credit card cash advance starts to accumulate immediately. Again, this can be an expensive option to get money in an emergency situation so it shouldn’t be something that you take lightly.
Potential Benefits of an Online Direct Deposit Loan
There may be several factors that could lead you to try to get a loan online versus an in-person loan. Here are a few of the benefits you may reap from these types of loans.
1. Apply Quickly Online
One of the most important benefits of an online direct deposit loan, especially when you’re facing an emergency, is the speed of the application. If you’re considering applying for a personal loan at a storefront location, there might be some hurdles that could make the process slower than you’d otherwise like. For starters, if you have a fairly busy schedule, it might be hard to find time to go to a storefront. If you do manage to carve out some time, you may still have to deal with lines and wait times to speak to someone. If you decide to apply for a personal loan online, you can cut out a lot of this wait time. An online application with a financial institution that services or provides online loans generally takes just a few minutes to complete. This is especially important when you’re facing an emergency expense that you need to take care of right away.
2. Convenient Process
We just highlighted the benefits of the speed of an online direct deposit loan, but there are other factors of an in-person loan that an online loan can help you deal with. Not only is an application for a personal loan online fairly fast, but it’s also convenient, namely in how it helps you cut out the travel necessary to apply for an in-person loan. When you apply for a loan online, you can do it from the comfort of your own home, at your workplace, or anywhere where you can get online. You may even be able to submit an application any time of the day or night. This will depend on the financial institution you’re working with.
3. Straightforward Research Process
Whenever you make any sort of substantial financial decision, it’s always important to do thorough research beforehand. When you’re on the lookout for an online personal loan, doing research on your potential options is generally simple and straightforward. A responsible financial institution that services or provides direct deposit loans should have the important loan details accessible on their website, so all you need to do is search for personal loans offered in your state, line up all of your potential options, and do a comparison of the important loan details. Keep in mind that if you live in Texas for example, you’ll need to research online loans in Texas.
4. Get the Money You Need, When You Need it
Another important factor when you’re looking for a personal loan to help you out in an emergency is the speed of funding. After all, if your emergency is only going to get worse as time passes, you’ll want your funds sooner rather than later. With fast loans with direct deposit, you may be able to get money in your bank account as soon as the same business day if your application is approved. This will depend on the financial institution you’re working with as well as your bank’s policies.
Can I Get Direct Deposit Loans Quickly?
All loans are not created equal, so as you browse through different borrowing options, you’ll likely find that there are some differences between the products that various personal loan companies have to offer. You may see some variation between their processes, how long the application process is, and certain other loan details.
One of the key components to consider is how fast the borrowing process is with each institution. This is especially important when you need money to help you through an emergency situation. When it comes to how quickly you can get funded, it’s generally dependent on the financial institution that’s offering or servicing the loan. With some organizations, you may be able to get your money the same business day you get approved. This may not be the case everywhere, so be sure to read the fine print and check the details of the loan you’re applying for beforehand.
How can I get Approved for Direct Deposit Loans?
Like we mentioned earlier, you’ll run into plenty of variance from one financial institution to another. This can sometimes include their criteria to qualify for a personal loan. There’s a good chance that you’ll find some overlap in their requirements, like income, employment, and state of residence, but it’s still important to look into the specifics for each specific financial institution.
How Much Does a Direct Deposit Loan Cost?
When you’re trying to figure out how much a loan is going to cost you, there are a number of factors that’ll come into play. This can include things like your credit score, your income, the amount of debt you’re currently carrying, and more. There are also financial institutions which don’t offer loans with variable rates, but instead use some of the previously mentioned factors to determine how big of a loan you’re eligible for. Carefully review the different options that may be available to you before you apply for a loan.
Will I Need an Appointment to Submit a Request for a Direct Deposit Loan?
With online loans, you generally won’t need to make an appointment to submit an application. That’s one of the factors that makes them so convenient! All you need to do to apply is to go on a financial institution’s website or mobile app and get started on an application whenever it suits you.
What is a Secured Direct Deposit Loan?
When we talk about secured and unsecured loans of any sort, those descriptors are specifically referring to what’s required to qualify for a loan. In regards to a secured direct deposit loan, in order to qualify, you’ll need to put forth an asset which will serve as collateral for the financial institution servicing or providing the loan. If you’re unable to make your loan payments on time (or at all), the institution you’re working with will potentially seize your asset in lieu of payment.
In some cases, the actual object you’re purchasing acts as the collateral that you’re required to put up to qualify for the loan. For example, this is generally how it works with mortgages (used to buy a home) and auto loans (used to buy a car). You may also be able to use personal items or other assets as collateral depending on the type of loan and organization you’re working with.
Usually, trying to get approved for a secured loan may be a good way for people to get a large amount of funding. But when you’re asking for a lot, you’ll have to risk a lot in return. For example, you’ll likely need to borrow a lot of money to buy a house, so in order to get a lender to agree to a mortgage you need to pledge a very valuable item as collateral. That’s why mortgages require you to put up your equity in the home you’re buying as collateral.
What is an Unsecured Direct Deposit Loan?
On the other end of the spectrum, an unsecured loan will not require you to submit any form of collateral in order to qualify. Because of this, they’ll focus more on certain other factors in order to make sure you’ll be able to make your payments for your direct deposit loan.
Like we mentioned before, the requirements for approval won’t necessarily be the same from one financial institution to the next, but one factor that a lot of organizations may look at to get an idea of what kind of borrower you’ve been in the past is your credit score. This number is meant to help them determine whether or not you’ll be able to pay back what you owe by giving summarizing your history as a borrower.
If you don’t have the best credit score, there still may be potential options for people with bad credit. While requirements can change, the general things they’ll be looking for is a steady source of income, that you’re a resident of a state they operate in, your employment situation, and more.
Because unsecured personal loans don’t require you to put up any collateral, there’s more risk on the side of the financial institution. This means that the rates of these types of loans will generally be higher than those of secured loans.
How is a Line of Credit Different Than an Installment Loan?
Both a line of credit and an online installment loan can fall under the umbrella of a personal loan, but there are still some noteworthy differences between the two. The main one is that a line of credit is considered to be revolving credit. This means that if you submit a request for a line of credit and it’s accepted, you can decide how much money you want to draw – as long as you have available credit and your account is in good standing – and you can do this on a recurring basis. You’ll just need to pay back what you owe on time, and then you can draw funds again. With an installment loan, you’ll get your money in a lump sum which you’ll then need to pay off with interest and/or fees over the course of several months or years.
Consider Applying for an Online Direct Deposit Loan
It’s not always easy to manage the costs that follow an emergency, particularly if money is tight and you don’t have much room in your budget. Things can get even trickier when you aren’t aware of what your potential financial options are. If you’re in need of some extra funds to help you handle an emergency, a direct deposit loan may be able to help! Be sure to take the time to research your potential options and look for the best solution for your situation.