Did Credit Direct send you a mailer that claims to prequalify you for a loan of up $22,000 with as low as a 6.99% interest rate (similar to the one below)? 

They suggest that this loan will allow you to reduce payments to as low as $436/month and help you save as much as $334/month.

Have you applied?

If situation happened to you, or you’d like to learn more about Credit Direct as a company, we’ll cover all of that in this article. 

What is Credit Direct?

Credit Direct History

After doing some research online, we’ve discovered that Credit Direct markets themselves as a “new kind of online consumer loan provider that makes access to funds simple”. We learned that they operate under three alternative business names that redirect to the same website: creditdirect.com, 123applytoday.com, and delmarvafunding.com. The domains were created quite a long time ago, with their respective registration dates being as follows: 1/12/2000, 9/16/2014, and 12/13/2012. 

The fine text at the bottom of their creditdirect.com website states: “Loans funded by Credit Direct offer fixed interest rates from 6.99% APR to 29.99% APR for loan amounts from $1,000 to $40,000. Loan repayment terms range from 12 months to 60 months. There are no administration fees”.

With this information, we can see that the claims made by Credit Direct mailers seem to be in line with what they’re offering on their website. It is important to understand that although they do offer loans with an interest rate as low as 6.99%, they also mention that “Approval rates offered through Credit Direct or our lending partner network depend on several factors, including state law, loan size, financial history, and creditworthiness. If approved, your actual rate will fall within a range of rates and is not guaranteed to be the lowest rate available”. This means that there is a good chance the interest rate you are offered will be higher than 6.99%, something to keep in mind as you shop for different loans.

Lastly, it is important to consider that Credit Direct works by pairing clients with loan opportunities from authorized lenders. They state that “loans may be funded by our third parties through our network of Service Providers and that loan funding sources may not be from Credit Direct”. They also mention that “Credit Direct does not endorse any particular lender, nor does it control the creditworthiness qualification eligibility criteria of any participating third party lender or loan funding source”. With this mind, it might be worth it to explore several different loan providers given your specific financial situation. This will allow you to better understand how a loan offered by Credit Direct compares to other lenders. 

Credit Score Requirements

The mailer also claims that “if the information we received from the credit bureau on [date] is accurate and our other loan criteria are met, you cannot be turned down”. Although we are not certain if this true, and whether loan offers from the mailers differs from loan offers on their website, it might be in your best interest to confirm this with a Credit Direct representative. If you submit an application through their website, however, we can be fairly certain that your financial situation will be assessed with the criteria mentioned previously to determine an optimal loan for your situation.

These are factors that are important to keep in consideration when working with Credit Direct, as assuming you are pre-approved could misinform your decision. 

Let’s Look At The Reviews

Now that you understand Credit Direct’s history and what it does, we’d like to dive into the company’s reviews. Hopefully, this will allow you to better understand what other people have experienced and what you might expect when working with Credit Direct.

BBB

The first site we checked was the Better Business Bureau (BBB). This accredited non-profit organization provides the public with information on businesses and charities. After searching up Credit Direct, we found that the company is rated 4.65/5 stars, has 3 complaint closed in the last 3 years, and 0 complaints closed in the last 12 months. 

The reviews we highlighted seem to have a general consensus that the company worked with their clients in a professional manner, made the process fast and easy, and were clear on the loan requirements/loan options. This is definitely a positive factor as it shows previous clients have had a good experience with Credit Direct. However, there was also a few negative reviews that shouldn’t be ignore. The one seen above says that a representative became irritated when their offer was declined by the client, and proceeded to hang up the phone. Although this does not indicate malicious behavior by the company, it is something we felt was important to mention. 

Google

The next place we checked was Google, where the company is rated 4.2/5 stars with 26 reviews. 

Positive reviews  commend the company for its streamlined loan application process, highlighting the clear terms and rapid service delivery. For instance, one person noted a particularly pleasant experience with the smooth application process and the helpfulness of the staff, echoing sentiments of satisfaction found in several other reviews.

However, a few customers reported less satisfactory experiences. One person expressed frustration over receiving numerous unwanted emails after his application, which he perceived as a privacy concern, though the company responded by emphasizing their commitment to customer privacy and security. Another criticized the company for not disclosing upfront that her creditors needed to be delinquent before proceeding, though this review did not receive a direct response from Credit Direct.

Important Distinction: Debt Consolidation Loans vs Debt Consolidation Programs

Now that we’ve brought to light how Credit Direct operates as a business, we’d like to explain the differences between debt consolidation loans and debt consolidation programs (aka. debt consolidation / debt relief). In short, there is a huge difference between the two, and it’s important not to get them mixed up. 

Debt consolidation loans are loans you receive (typically with a lower interest rate than the rest of your outstanding debts) to consolidate your debts and pay them off faster. With debt consolidation programs, you allow your debts to fall behind so that a debt consolidation company can settle your debts for ~50% of their value. Debt consolidation companies also typically take a fee of ~25% of your debt’s value. With debt consolidation, it is possible that there might be hidden origination fees, balance transfer fees, closing costs, and annual fees. Furthermore, even though your monthly payment might be lower, the interest will likely accrue over a longer period of time, causing you to pay a higher amount of interest over the life of the loan.

Therefore, it is crucial to compare different debt consolidation programs and be aware of any hidden costs or fees. If you are looking for a loan, however, we have 2 debt consolidation loan options that do not affect your credit score when checking rate and do not charge prepayment penalties.

How Much Do Debt Consolidation Programs Cost?

At Ascend, we believe that debt consolidation programs (debt relief) may be a good option, but often in context in understanding all the costs and duration estimates of all your options. As such we built the free debt consolidation program cost calculator below to help you compare your current monthly obligations to a debt consolidation program.

Generally programs cost between 15-25% of your enrolled debt amount.

Alternative Options to Credit Direct Lending

Many people prefer to try to get a debt consolidation loan before looking at options such as debt management, debt payoff planning, debt settlement or bankruptcy. If you’ve searched far and wide for a loan and can qualify, consider taking the free debt consolidation program cost calculator below that allows you to compare to other options.

Closing Thoughts

From my research, although not definitive or exhaustive by any means, we can reasonably conclude that Credit Direct offers debt consolidation loans by outsourcing the funding of these loans to different providers, those of whom might have their own specific credit requirements. 

Now that you have other information about the company’s history and its online reviews, it’s important to remain aware about the company’s alternative motives and marketing tactics, as well as how that fits with your personal financial situation. As always, it’s a good practice to do your own research and build your own opinion.