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Person trying to find a direct lender for a bad credit personal loan.

How To Find a Direct Lender for Bad Credit Personal Loans

So, you’ve got some blemishes on your credit report. You ran into bad luck and complications in the past. But you still need to borrow money or get a loan to cover larger purchases and the unexpected.

Poor credit or black marks on your credit report make it tough to get personal loans, especially from local or national banks. Traditional lenders usually require specific credit scores and may not overlook blemishes like recent bankruptcies.

However, direct lenders have less stringent credit requirements and restrictions. That’s why many with less-than-ideal credit reports look for loans from direct lenders. That being said, it can be challenging to find reliable direct lenders.

Key Takeaways

  • Direct lenders often have less stringent credit requirements compared to traditional banks, making them a more accessible option for borrowers with less-than-ideal credit histories.
  • Direct lenders provide a range of loan products, including personal loans, payday loans, and title loans, catering to different financial needs. Borrowers can choose the loan that best suits their circumstances.

What Is a Direct Lender?

Direct lenders are companies or individuals that provide private lending without a bank or intermediary. Because direct lenders operate without an intermediary and are private, they don’t have to follow stricter lending guidelines.

A direct lender can be an individual investor or someone willing to provide a loan to another person. Sometimes family members and friends who loan a person money are seen as direct lenders. In addition, you may negotiate a repayment plan or sign an IOU agreement.

However, loans from friends and family are usually unofficial and not on the books. They’re verbal agreements that can lead to conflicts and future problems. Direct lenders that are private companies or investors usually involve formal or written agreements.

What Type of Loans Do Direct Lenders Provide?

Direct lenders offer a variety of loan products like personal loans, payday loans, and even title loans. A direct lender is nothing more than getting the loan and the funds from the same company, so really the products meet the borrower's needs. Here are the most common examples:

  • Personal loans. Personal loans are unsecured loans that can be used for various purposes, such as debt consolidation, home improvement, or unexpected expenses. Direct lenders offer personal loans with fixed or variable interest rates and flexible repayment terms.
  • Payday loans: Payday loans are short-term loans that are typically repaid on the borrower's next payday. These loans are designed to provide quick cash for emergency expenses. 
  • Cash advances. Cash advances are short-term loans that allow borrowers to access cash quickly. These loans are typically repaid with the borrower's next paycheck or over a short period. 
  • Title loans. Title loans are secured loans that require borrowers to use their vehicle title as collateral. Direct lenders offer title loans with flexible repayment terms, but borrowers risk losing their vehicle if they fail to repay the loan.
  • Bad credit loans. Direct lenders also offer loans for borrowers with bad credit. These loans may come with higher interest rates and fees but can provide access to much-needed funds for those with poor credit histories.
  • Business loans. Direct lenders offer business loans to help small businesses grow and succeed. These loans can be used for various business expenses, such as inventory, equipment, or expansion.
  • Mortgages. Direct lenders provide mortgages to help borrowers purchase homes. These loans come with fixed or adjustable interest rates and various terms to meet the needs of homebuyers.

What Is the Difference Between a Direct Lender and a Third-Party Broker

When considering loans, borrowers often choose between direct lenders and third-party brokers. Direct lenders offer loans directly to borrowers, while third-party brokers connect borrowers with multiple lenders.

Each option has its own set of pros and cons, which can impact factors such as access to lenders, communication, rates and fees, privacy and security, loan options, expertise, time-saving, cost, and negotiation. The following table compares these factors for direct lenders and third-party brokers to help borrowers make an informed decision.


Direct Lenders

Third-Party Brokers

Access to lenders

Provide their own loan options

Connect you with multiple lenders, offering a variety of loan choices


Communicate directly with the lender

Act as a guide between you and the lender, providing support and advice

Rates and fees

Might offer competitive rates and fees

They may charge fees for their services, but can help find the best deals

Privacy and security

Handle your information directly and securely

Manage your sensitive information with care, ensuring privacy

Loan options

Offer a specific set of loan products

Provide access to a wide range of loan options from different lenders


Specialize in their own loan offerings

Offer expertise in navigating various loan options and finding the best fit


Require you to compare options on your own

Save you time by comparing loan offers from multiple lenders for you


May provide cost-effective options

Charge fees that add to the loan cost, but can help find cost-effective solutions


Have limited ability to negotiate terms

Can negotiate with lenders to secure better terms for you

Where Can I Find Direct Lenders?

You can usually find direct lenders online, or you might find them in local shopping centers or strip malls. Some direct lenders also operate as payday loans or cash advance businesses. Neighborhood and social media apps may also lead you to direct lenders. Just be wary of lenders who want to scam customers.

However, the easiest thing to do is to search for direct lenders online. You can use search terms like “direct lenders near me” or “bad credit loans near me.” The search results you get should pull up local lenders, but you might also see some national companies populate.

Simple Fast Loans is an online direct lender providing quick decisions on personal loan applications. You can qualify if you live in one of the following states:

  • Alabama
  • Arkansas
  • Arizona
  • California
  • Delaware
  • Florida
  • Idaho
  • Wyoming
  • Washington
  • South Carolina
  • Texas
  • Indiana
  • Mississippi
  • Louisiana
  • Minnesota
  • Missouri
  • Montana
  • Nevada
  • Nebraska
  • Ohio
  • New Mexico
  • Oklahoma
  • Utah
  • Kentucky
  • Michigan
  • Utah
  • Alaska
  • Kansas
  • Wisconsin

Our application process is done digitally and requires a picture ID, such as a passport. You must also submit proof of income, be 18 years old, and include your social security number. However, you’ll get an immediate decision.

What Financial Needs Can Direct Lenders Help with?

Direct lenders often give smaller loans to help reduce their risk. Yet, emergency expenses usually don’t demand the amounts a mortgage or car loan does. You might be short on cash for one month and need a bit more to cover all your bills.

Or, you might have to make an unexpected trip to the emergency room. Your medical insurance might cover some of that, but not all. A personal loan can help you pay off the hospital or urgent care center.

If someone in your household loses their job, this can also be an emergency. While they’re in between employers, a personal loan can help. Sometimes people also receive higher than average utility bills. Personal loans can cover you for that, too.

Unforeseen car trouble and repairs are more examples. You need your car to get to work and home again. However, not everyone can afford the cost of what it takes to fix those vehicles. Personal loans can prevent you from quitting or going without a car.  

How Long Do Direct Lenders Take to Send the Funds?

Simple Fast Loans gives applicants an immediate decision and ensures they quickly get the money they need. You can deposit your loan funds in your bank account the same day you apply. Alternatively, you can choose to get those funds the next day.

You don’t have time to wait when you need an emergency loan. Simple Fast Loans understands this, and we provide you with flexible options. So, you don’t have to worry about getting evicted from your apartment or home if that’s what you need the money for.

Other examples are threats of car repossession or bills about to go to a collection company. So are utility bills and other balances that can’t go a day or two more without getting paid. You don’t want your heat or electricity turned off during a cold winter or hot summer.

Final Thoughts

Working with direct lenders like Simple Fast Loans eliminates the need for drawn-out loan approval processes and excellent credit. In addition, because we are not a traditional bank, approval requirements aren’t as strict.

You can apply for an online loan and get a decision within minutes. We will send the money to your bank account as soon as the same day you apply. That way, you can pay emergency expenses related to a job loss, utilities, or medical costs.

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