Alternative Lending Sources?

Glad to hear you got through somehow, as for borrowing i'd rather borrow my Dad or a close friend of mine, i know i won't be charged interest later on whilst refunding back unlike borrowing from the bank, yet i don't like being caught in the web of borrowing, it puts me in a weird spot

 

One Main Financial is horrible, relentless, and flat out lies. The contract I signed and what they did are NOT the same. I had to get a lawyer involved. But I need quick cash at the time and had my check in an hour. So this is the aggravation I must bear. So be it.

 

I have tried online lending sources, but I prefer to borrow from family. In that way you will always have enough time to repay the. Also they understand you in better manner. I think this is the best way to lend.

 

Based on micro lenders here, what gets the borrower are the hidden charges. Let's say the interest is 1% per month so that is pretty small. But there is a service charge on top of that plus some other charges like processing fee. The total interest rate would reach 3% per month and that's 36% per annum, quite a big number for interest. With banks, they have the standard rate and procedures so you feel safer.

 

I think you can use an alternative lender as long as you check them out. I think some lenders are probably fair and you can get a good deal from them, and others are just out for themselves,,,and have outrageous interest rates on their account. If you feel comfortable asking for the money from your dad do so...otherwise do your homework on various lenders before you jump.

 

There is no problem with online loans when you consider the parameters and security issues. Reputation is everything. Take the good old Paypal. It does give an overdraft and this is a form of a loan. Another example it the Kiva loan. You can also verify their authenticity by reading reviews and comments associated with online loan sites. On the overall, they are very convenient due to fast processing.

 

I guess you are right with online loans that they are somewhat dependable. But my advice to borrowers is to thoroughly check the loan contract especially the clause about the interest and charges. The penalty clause is also important because in case the borrower defaults on the payment, at least he would know how much would be charged of him for penalties. However, I would still prefer an offline loan where I can freely talk to the loan officer who sometimes could give a good advice on the type of loan to take.

 

A lot of these online loan companies and so called payday loans prey on the people that are the worst off in society and something needs to be done to put a stop to them.

If a bank turns you down, they know that as a last resort, people will turn to them. They know they are desperate for the cash so can pretty much charge whatever interest rate they want and it will be accepted. For me that's a low way of doing business though and it needs to stop.