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Is Credit Ninja a Direct Lender?

If you are strapped for cash and in need of an immediate small loan, you will most likely have to look for a direct lender. This is a rather new form of the mortgage business, and increasingly popular. Nevertheless, it comes with certain risks, especially for the borrower. Credit Ninja is one of the more popular enterprises, and you might be wondering – ” Is Credit Ninja a direct lender?”.

Credit Ninja is an online lending business based in Chicago, focusing on small loans, and it operates as a direct lender, meaning that you won’t need a third party when negotiating an agreement, but rather, everything will be done by yourself. Moreover, everything can be done via phone or computer. However, these loans are high-risk, and you should be extremely careful when applying for one.

A person looking to enter credit card information on a laptop

Businesses Like Credit Ninja Are Always Direct Lenders

Before I explain what Credit Ninja does, let us first see what a direct lender is. When negotiating with a direct lender, there are no intermediaries like brokers, investment banks, or private equity firms. In other words, the borrower directly negotiates with the lender. However, businesses that operate in this way are usually specialized for small loans. Credit Ninja is one of such businesses. Here is some basic information on how they work:

  • For companies like Credit Ninja, the credit score is not the determining factor when lending money. You can have a score below 500 and still be eligible to get the loan.
  • However, such companies only issue small loans. When it comes to Credit Ninja, the usual maximum is 5,000 dollars, and this is only reserved for people with better credit scores.
  • You have probably heard when finalizing a mortgage deed at a company like Angel Oak  that you have to go in person and sign a lot of papers. However, this is not the case with enterprises like Credit Ninja, where everything is done online.

As you might have guessed, Credit Ninja is not for people who are looking to buy real estate. If that is the case, then you should consider companies like Bank of America, E Mortgage Capital, or City Creek Mortgage. However, if you are a student looking for a small loan or a person who needs some cash infusion urgently, then Credit Ninja might be able to help you.

Applying for a Loan is Incredibly Easy With Companies Like Credit Ninja

One of the main reasons why such businesses are becoming popular is because a person usually receives the loan within two or three days. The application process is online, and if you have all the necessary information, it won’t take more than five minutes. Here is how the application works.

Step 1Credit Ninja offers online applications. This means that you just have to enter their website and click on the “Apply Now” button at the top right corner of the screen. Of course, you will be asked to enter personal information – name, address, phone number, and all important financial information like income and bank account.
Step 2Once the application is sent, Credit Ninja officials will review your request and decide whether you qualify. This usually takes one or two days, but sometimes you get the answer on the same day.
Step 3If your request has been approved, Credit Ninja will state how much you qualify for and what their terms are.
Step 4If you accept their offer, you will be asked to accept their terms and regulations, which is the same as if you were signing a paper in person.
Step 5After accepting, Credit Ninja uses direct deposit for transferring money, and you will receive the payment quickly afterward.

The Credit Ninja repayment process is organized in installments. You will also receive the repayment plan before accepting the offer, and this is non-negotiable. After paying the last installment, the mutual agreement is automatically terminated.

Be Extremely Careful When Working With Companies Like Credit Ninja

Although Credit Ninja is technically a completely legitimate business, they are exploiting many loopholes in order to profit. Truth be told, they wouldn’t be able to make money in any other way – realistically speaking, giving even a small amount of money to a person who has a poor credit score and loan history is always dangerous. However, if you are an honest person who needs money urgently, you have to keep in mind that you can be a victim of exploitation as well.

Companies like Credit Ninja use APR to the maximum extent (APR is the sum of all factors that affect overall service costs, installments, and penalties). The issue is that Credit Ninja is not transparent about these rates, and you can’t find clear information on how much you will have to pay if you are late with your installment, for example. There have even been reports in the past where people had to pay double the amount they have loaned because of some misunderstandings or belated payments. Hence, doing business with such companies is not advisable if you are uncertain whether you are able to repay everything in time. Unfortunately, after accepting their terms and conditions, they have the right to sue you.

A picture of one dollar bill

Consider This High-Risk Loans Only if There Is No Other Option

To conclude, I must state that Credit Ninja and other online lending services should be the very last option. It is understandable that a person can be in a tough financial situation, especially when it comes to bills, and these companies do seem like a perfect short-term solution. However, there are many risks, and you could end up being in a worse situation than before after getting one of these loans.