A recent study has found that the majority of Americans find themselves spending money they don’t have on essential car repairs or utility bills. For some low-income families, the cash shortage can be significant enough that they spend more than 182% of what they make in a year. Even the middle and upper classes aren’t without their difficulties, as each rung spends 89% and 61% more than their respective incomes. When you look at the numbers, borrowing money in order to cover basic needs seems inevitable.
For those financially green individuals, the thought of debt can induce heart palpitations, but there’s no reason to stress. Debt is a fact of life. According to a report conducted by the Pew Charitable Trusts, as much as 80% of Americans are in debt. Between mortgages, student loans, credit cards, and car loans, debt is unavoidable. Looking for a line of credit to help pay for sudden, on-going charges like home repairs or utility bills isn’t a sign of failure. In fact, if you do it right, it’s the best way to support you and your household.
Not all personal lines of credit are created equal;however, so it’s important that you do your homework before you check out these options. You need to confirm the lender you choose for your line of credit can provide security and responsibility through fast-acting, convenient loans. When time is of the essence, traditional lenders can’t offer all of these features, which is why so many Americans choose to investigate direct online lenders as their source for lines of credit.
Direct online lenders have an incredibly quick application process that requires very little time or effort on your part. As long as you have access to the Internet and can provide proof of your income, a valid bank account, and a working email address, you can apply. You’ll know if you qualify instantly. From there, your application will be reviewed and any of the information you provide is verified. Should everything check out and your application is approved, your limit (typically $1,000) will be available within one business day.
In order to apply to any lender, regardless of the quality of your loan, you will have to release information. To ensure your contact and financial data is protected online, your direct online lender must employ a minimum amount of digital security. Things like updated firewalls and Secure Socket Layer (SSL) should protect their website and their digital storage spaces.
To ensure your line of credit can provide a responsible solution to your financial situation, look for their license and online precautions. Your direct online lender must be licensed to issue loans in your state. Without this accreditation, there’s no way to guarantee the credit they provide abides by your state’s laws and regulations regarding money lending. This means they can raise the rates and change the terms of their loans with impunity, purposefully inflating and confusing their products so they’re harder to pay back.
While earning debt shouldn’t arouse fear or suspicion, you do want to be able to pay it back one day, so it’s critical for your financial health to ensure your direct online lender provides responsible lending opportunities. Take the time to research personal lines of credit in your state, and make the right choice about your finances.