When you seek any type of loan or mortgage, you may spend a great deal of time researching lenders comparing their rates. Once you decide upon a lender, the loan provider checks financial history to ensure you are not a risk and if everything is in order your loan is approved.
The loan or mortgage company will provide you with the repayment terms. The installments consists of a monthly sum along with extra fees and charges that are applicable to your mortgage or loan.
In today's difficult economy, many borrower's have had to forclose on their homes due to the inability to repay the mortgage or loan. This is called a default. Wen the sub-prime mortgage crisis occurred, many banks ceased lending to consumers for fear the loans would not be repaid. Today, loans are more difficult to obtain than ever before. The consumer needs to have a very high credit score (FICA) to be eligible for a mortgage or loan from a banking institution.
Direct Pay Comes to the Rescue!
Direct Pay is available for both closed-end and revolving loan accounts. It is not available on retail accounts at this time. You can sign-up to use Direct Pay at anytime during the life of the loan.
Direct Pay is the safest method that can help you pay a debt on the day it is due. Direct Pay is an automated payment option that can pay off your debt amount once you set the date and amount. Then, each month the debt is paid automatically.
There are many benefits using Direct Pay. You do not need to write checks each month. Using Direct Pay, your due payment is automatically posted on the given date. This will avoid you having to pay penalties and late charges. Considering that banks
have recently increased interest rates
, especially for those who may have missed just one payment and whose credit line has been decreased. Direct Pay can prevent any of these actions from occuring.
With Direct Pay, you set up your account according to the date and amount of money to be paid. Another great benefit that Direct Pay offers is that when you complete your transactions and have paid off the debt, you have begun to build an excellent record in your credit history. The credit history is very important as it will be viewed when you apply for another loan or mortgage. Thus, lenders will be more inclined to grant you a loan or
mortgage based on this excellent history
. Moreover, making payments on time can increase your credit score as well.
Direct Pay also saves money on postage or courier charge. Above all, you there are no fees incurred using the the Direct Pay option.