Who likes standing in line?
Exactly, no one! The busiest brains of the modern world are always thinking of ways to make everything easier for the average person. But this ever-improving convenience comes with a cost! Living a good life is more attainable than ever, so there’s no wonder some of us get carried away with overspending, leaving no money in our coats long before the next payday is due.
So, you’re penniless, confused, and banging your head over how to get a hold of some extra cash to make it till the next paycheck. You get an idea – “I’ll get a bank loan!”, but then you realize that your credit score is bad, and you’ll just end up waiting in a queue for hours just for some choreographed sympathetic “sorry, but unfortunately…” from the bank clerk.
Online Loans – What’s different?
There’s a number of differences between traditional and online loaning. Besides the obvious advantage of the online type (finishing the whole process from the comfort of your home), there are also other perks you might not know about.
The application uses automated systems that help streamline and review the process, which means quicker feedback, and time is frequently of the essence when we need money.
Bad Credit Score?
There are online lenders who specialize in giving loans to those with excellent credit. On the other hand, an online loan for bad credit is something many lenders specialize in, so if your score is not looking great, these folks might just be your saviors, though be aware that you may receive a high-interest rate! Another upside is because online-only lenders have no branches to build, maintain, or staff, you may get a better (lower) rate, although this is not universally true.
How Fast do you get the money?
If you need that loan quickly, online lending may be the way to go, because these lenders can process your application and make a decision quicker than a traditional bank. There are lenders that can fund your loan the same day you apply or the next day. As I stated already, time is sometimes of the essence when seeking a loan, so saving yourself a couple of days of wait may save a lot of your nerves, too.
Are Online Loans Safe?
A legitimate online lender must meet the same strict standards and rules that traditional banks do. There are steps you can take to be sure that you’ve not come across a scam, though, like checking their federal registration, find their rating, or basically conduct a small online search on google to make sure their name doesn’t pop up in a negative context.
Usually, one of the surest signs of shady lending activity is when an online lender contacts you, instead of vice-versa. They might be pretty insistent, and guarantee the approval of your loan, before even checking your credit history. You may or may not find online information on them, but beware of this kind of behavior, it is most likely a sign for you to move on and keep looking.
Even though there are rotten apples, all-in-all most online loans are safe and reliable.
Payday Loans – Yes, or No?
While you might be pulled in by online companies advertising short-term loans, beware that these usually have drastically higher interest rates than normal.
This is because:
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- they are basically lending you money without checking your credit properly, so they expect to be compensated for it;
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- because you really need it and they are sort of taking advantage of your situation by overcharging.
So, all in all, you might want to stay away from these kinds of loans, and stick to searching for a longer payback time.
There are positive sides to online lenders that may pull you away from traditional bank loans. Some people do feel safer with the hands-on approach, having an actual person in front of them in an actual brick & stone building when handling their finances.
For all others who enjoy handling their money issues by themselves, preferably with no actual second person involved in the process, or those who just don’t care if it’s one or the other, online loans (in good, reputable companies, of course) have more than a few aces up their sleeves. Faster, more convenient, and in many cases with lower interest rates.
That seems enough, at least in my humble opinion, to reel in more than a couple of interested parties, and have them leave these websites relieved of their troubles.
