Will your creditors still help you when you are in deep financial trouble? The answer depends on many factors. But surely only direct lenders offering personal loans can give you a positive answer in seconds. Just submit your online application and wait on your phone, the direct lender will act on your request fast. Cash loans are short term and small. If you need them urgently, they are a perfect solution.
If Your Credit Is Good
Creditors are guided by a set of rules when granting loans. Consequently, they follow the rules on delinquent borrowers. So if your credit is in good standing, expect to have a good relation with your lender. However, when you start defaulting on your loan regardless of the reasons behind it your creditor will start sending you collection letters. If you do not respond positively to their call to pay the debt the next time around you may have to meet your creditor in the courtroom face to face demanding that you pay your debt in full.
This scenario is unlikely to happen with your guaranteed personal loans from direct lenders. Since online personal loans are relatively small, direct lenders will not go that far to collect your money. Before you get your cash loan, everything is already in proper order. You will have to authorize your lender to debit your account or collect a part of your pay direct from your employer. There is no reason why the loan will not get settled in this kind of arrangement.
Personal Loans Are Different
Personal loans that are provided by direct lenders are totally different from the loans extended by traditional lending companies like banks. The procedure is shorter and faster than with the latter. They do not require any documents to back up your application. Moreover, the amount is probably a drop in a bucket only if compared to bank loans which could run to several hundred thousand to millions of dollars.
Cash advances extended by online lenders could amount to as much as $1,500 depending on your state and the company that you are dealing with. The smallest loans could be from $100 to $300, again depending on your wish and the lender’s policy. So, if your loan is only $300, would it be possible for the lender to sue you just to collect? In your case as a borrower, are you not going to immediately settle the debt before it reaches the court?
Beware of PDCs
However, there are lenders that use the strategy of filing a court suit to collect when a borrower defaults on the loan. This is possible when there is an outstanding bounced check in the hands of the lender. The check can support a case in court. The threat of filing a court case is now used by lenders to coerce the borrower to pay off the debt plus damages. This is the hazard of issuing a postdated check to guarantee a payday loan.