The first things you need to know before shopping for a loan are the differences between direct vs indirect lenders and the importance of using a licensed lender.
There are enough loan features out there to leave anyone confused, but did you know that there are also different kinds of lenders? It's important to know the differences between licensed and unlicensed lenders as well as direct and indirect lenders. That way you can shop for the right loan product and the right lender.
Licensed lenders are lenders who have a specific license to lend with the federal and state government.
Licensed lenders have to follow both state and federal government requirements. If a lender is licensed, then you know they follow important regulations to keep their borrowers safe.
To get a license, lending companies need to meet specific requirements, apply and get approved, and keep their services up to date with state and federal regulations.
Lenders apply for this license with the Nationwide Mortgage Licensing System (NMLS), the Department of Business Oversight (DBO), or the Residential Mortgage Lender License (RML).
To meet the strict approval process's requirements lenders need the following:
Lenders who specialize in dealing with mortgage loans have added special requirements like getting approval from the following organizations:
Licensed lenders also have to deal with regular state and federal audits that routinely make sure licensed lenders are following all of their proper guidelines. This means they have to keep very detailed and organized financial statements and documents.
When a lender is licensed, you know as a borrower that the lender is legitimate, professional, and fair.
Like with all lending options, there are pros and cons to both direct and indirect lenders.
Direct lenders offer loans directly to the borrower. Some examples of direct lenders include banks, credit unions, and financial institutions like Check City. By using a direct lender instead of an indirect lender, a loan borrower can apply for a loan and receive loan funds all with the same company. This means that the same company they apply with is the company that funds their loan. Indirect lenders will instead let you apply with them, but another company will be the actual loan funder. This includes payday loans online, bad credit payday loans, personal loans, cash loans, and more.
Indirect lenders offer loans indirectly through a third party. Another term for indirect loans and indirect lenders is dealer financing. This is because working with indirect lenders is like going to a loan dealership where lots of different loans are available and a salesperson is going to try and sell you a specific one.
A direct lender loan is the best type of loan because you'll be dealing directly with the lender instead of with a third-party loan intermediary.
A direct lender loan is also more likely to get you better interest rates, better payment options, more flexible loans, more personal customer service, and more transparent loan terms.
Direct lenders who offer installment loans are more likely to approve loans for borrowers with bad credit.
Because they have a direct relationship with the borrower, they can offer other forms of loan security. That way, borrowers with bad credit still have loan options available to them too.
Payday loans are a type of loan designed to help borrowers get to their next paycheck sooner.
Payday loans are a quick and small loan designed to be paid off quickly. The purpose of a payday loan is to give customers quick, emergency finance options for when they need them most.
Borrowers are guaranteed to get approved for a payday loan much faster with a direct lender and with payday loans a speedy approval and funding process is essential to getting customers the funds they need right when they need them.
Is Check City a licensed lender? Yes! Is Check City a direct lender? Yes!
Since Check City is a direct lender you can take all your loan questions and concerns to us directly. You can also get some of our loans as quickly as the same day with direct deposit or by coming into your nearest Check City Store.
You can take a look at Check City's lending licensing by visiting our Responsible Lending Statement Page or our State Licensed Lender Page. Because Check City is a licensed lender we have to meet all the important requirements set to keep our lending secure and safe. And we're glad to do it!
The best loans come from lenders who are both direct lenders and licensed lenders that are licensed with both the state and federal government. This is the best way to make sure your loan comes with the best terms and the most security.
Payday Loans are also commonly referred to as Cash Advances, Payday Advances, Payday Advance Loans, and Fast Cash Loans. Check City does not usually utilize traditional credit checks as part of the payday loan approval process. However, Check City may, at its discretion, verify application information by using national consumer loan underwriting databases that may include information relating to previous cash advance transactions that Check City may take into consideration in the approval process. Actual loan amounts vary. See Rates and Fees for specific information and requirements. Products or services offered to customers may vary based on customer eligibility and applicable state or federal law. Some customers applying for payday loans or installment loans may be required to submit additional documentation due to state law and qualification criteria. CheckCity.com provides loan services in: Alabama, Alaska, California, Hawaii, Idaho, Kansas, Missouri, Nevada, Texas, Utah, Washington, Wisconsin, and Wyoming. Customer Notice: A single payday advance is typically for two to four weeks. However, borrowers often use these loans over a period of months, which can be expensive. Payday advances are not recommended as long-term financial solutions. Loan proceeds issued through our website are generally deposited via ACH for next business day delivery if approved by 8pm CT Mon. – Fri.
Check City acts as a credit services organization/credit access business (CSO/CAB) in Texas.
This is an invitation to send a loan application, not an offer to make a short term loan. This service does not constitute an offer or solicitation for payday loans in Arizona, Arkansas, Colorado, Georgia, Maryland, Massachusetts, New York, Pennsylvania, or West Virginia. Tosh of Utah, Inc. dba Check City Check Cashing, a payday lender, is licensed by the Virginia State Corporation Commission. License #PL-57 Anykind Check Cashing, LC. dba Check City, a payday lender, is licensed by the Virginia State Corporation Commission. License #PL-21 Maximum funded amount for payday loans or installment loans depends on qualification criteria and state law. See Rates and Terms for details. Utah Customers: For consumer questions or complaints regarding payday loans and/or title loans you may contact our Customer Service Department toll-free at (866) 258-4672. You may also contact our regulator The Utah Department of Financial Institutions at (801) 538-8830.
Please see Rates and Terms to check the availability of online loans in your state. Check City does not provide loan services in all states.