We currently live in a world where, with some banks, taking a picture of your paycheck and sending it to them through their mobile app is enough information to deposit said paycheck.
In this fast-paced, digital world, there’s almost nothing we can’t do online. As time goes on, businesses are attempting to find more and more ways to put their services out there in a digital medium to attract more business and a younger customer base.
However, no matter how advanced we get, there are some things we can’t do online, right? And for a long time, we thought taking out loans was just something we had to do in person, at a bank.
But luckily for those of us with busy lives, that’s not the case. In fact, you can take out a variety of loans online. And there are plenty of reasons why you should.
If you’re not sure whether or not an online loan is right for you, keep reading! We’ll give you the rundown of why they’re a great option for just about anyone.
1. The Convenience Factor
The first and most obvious benefit to an online loan is how convenient it is. Nothing beats the comfort of your own home.
Traditionally, when you wanted a loan you would have to go to the bank and fill out a tedious amount of paperwork. Then you would have to go home and wait for the letter or the phone call to tell you whether or not you were approved.
Online loan services blow that out of the water. Not only do you have the convenience of staying home, but you can take your time filling out the information and often times the exact nature of that information can vary between applications.
Gone are the days of heading to the bank multiple times to talk to different employees. With online loans, you don’t have to speak to a bank representative at all.
The best part? You often hear back about the results of your application that same day.
2. Perfect for Emergencies
It’s impossible to plan for an emergency. Sure, you can save as much money as possible just in case the perfect storm of bad luck approaches, but sometimes things are just out of our hands. Besides, not everyone has that luxury anyway.
Sometimes, emergencies pop up and we just don’t have enough money to get us through. And there’s nothing worse than being caught in the middle of an emergency and having to wait for a bank to take its time approving us for the money we need to survive.
That’s where an online loan comes in.
Just like we said before, there are a lot of conveniences that come with online loans. One of those conveniences is how quickly you can be approved for one.
You don’t have to waste precious time filling out tedious information and waiting for banks to decide and you don’t have to explain yourself or your reasons for needing a loan. You just fill in an online application and wait for an hour, at most, to hear the results.
3. Easier Access to an Online Loan
There’s no nice way to put it: our global economy isn’t looking so pretty right now. And because of this, banks have to make hard decisions, which often means that they turn down more loan applications.
In today’s day and age, if you want to take out a line of credit of any kind, including a loan, you need to have crystal clear credit.
Another byproduct of our downturned economy is the fact that crystal clear credit scores just aren’t the norm for most people. And this means that many of us have a harder time accessing loans.
The nice thing about online loans is that the creditors are typically a lot more lenient when it comes to who they lend to. This means that even if you’re a person with bad credit or a complete lack of credit history altogether, you still have a chance at success when it comes to getting a loan.
4. You Have the Option to Compare
When you walk into a bank in search of a loan, you’re pretty much stuck with whatever loan they offer you. If you want to take your time and compare your loan options, that means you have to go to different banks and start the process all over again. You can expect to wash, rinse, and repeat this process for every bank you want to compare interest rates and loan information with.
Another nice thing about online loans is the fact that you have all of the information ready at your fingertips. It takes Google under a second to gather up the various interest rates for every lending establishment you may want to work with. You don’t have to waste any more precious time jumping from bank to bank, because you’ve got the power of the internet on your side.
5. Service at Any Time
When it comes to a traditional brick and mortar bank, you have a very specific set of hours that you can do business. And banker’s hours aren’t exactly the most flexible hours. Sure, there are some banks out there that offer hours outside of the more traditional banker’s hours, but those are few and far between.
When it comes to applying for your loan or even accessing your loan information, you can do it at any time of day. This is great because sometimes you just can’t wait until morning to get approved for an emergency loan.
If you’re a person who works odd hours and you can’t get to the bank during normal operation, online loans are a great option for you. No matter what time of day you need them, there are people there who can answer your questions and you can request a personal loan at any time of day.
6. It Saves You Time
As we mentioned before, getting a loan in a pinch is hard. This is because getting a loan from a bank in the more traditional way takes a lot of time, sometimes days or more. If you’re lucky, you’ll hear back about your loan the day after your loan application. If you’re not, you could be waiting for a lot longer to hear back.
But getting approved for an online loan is easy and fast. Depending on how fast your internet connection is, your approval could be instant.
In today’s fast-paced society, your time is money. Sometimes you need money and you need it fast. Online loans make that possible.
7. They’re Unsecured
When it comes to traditional loans, they typically ask for you to put something you own up as collateral to ensure that they get their money back. This is usually something of equal value to your loan, like a car or another important piece of property.
If you don’t pay back your loan in time, the bank can take your property in exchange.
However, when it comes to online loans, you don’t have to put up your precious belongings in exchange.
That said, there are still a number of things that your lender can do to ensure that they get their money back, including ruining your credit. So it’s wise to keep that in mind when you choose an online loan for this reason.
8. Easily Accessible Information
One of the best things about the online world we live in today is the ease with which we can get ahold of information, no matter what kind. It used to be that, in the event of losing a bank statement, you would have to call a bank and wait for them to mail out a new one.
But when you get a loan online, most lenders will open an online account for you that you can access at any time of day. This will have your current owed balance, your next due date, and other interesting and important information for you to know about your loan.
There’s no reason to be in the dark about any of this information anymore.
In addition, many online banks offer SMS services where they send you a text or an email when it’s almost time for you to pay your bill, ensuring that you’re not late.
9. The Lending Decision Is More Personal
When you enter a traditional bank, they will make their decision based on numbers and figures as well as any past experience they have with you. This can often feel impersonal and cold.
With an online loan, the computer program uses an algorithm to make the decision, along with your application and your credit score. However, they use a lot more information as well. And the technology changes all the time, so you know they’re getting the most accurate, up to date information,
This means that the decision to lend to you or not is much more personal. The complex algorithm knows a lot more about you than a bank ever will.
10. Lower Interest Rates
While the exact interest rates of your online loan will vary between vendors when you work online, everything tends to be a little less expensive.
This is often because brick and mortar banks have a lot more expensive to cover. They have employees to pay and utility bills to cover as well as their profit margin to consider.
However, online lenders don’t have as much to worry about, so they tend to have interest rates that are a little bit lower.
When to Get an Online Loan
In a perfect world, we would all have an emergency fund set aside and plenty of money to spend in case of emergencies. But that’s just not possible in today’s economy.
But everyone deserves a chance to improve their finances.
If you’re looking for a little extra money to help get you back on track, or if an emergency came up that you need money fast for, you should consider looking into online loans.
In addition to online loans, you should consider opening a line of credit on a secured or unsecured credit card.
Another huge benefit of an online loan is that it gives you the opportunity to improve your credit. If you continue to make payments on time every month and you’re careful with your finances, an online loan could help you improve your credit score over time.
Online Loans for Fast Money in a Pinch
There’s a reason why online loans are growing in popularity. This is a booming business, with online loan sites providing billions of dollars to people in need all over the country. This is because they’re convenient, sure, but it’s also important to remember that moving business online is the way of the future.
Online loans are the perfect tool for anyone looking to take out a loan, no matter the reason. Just make sure you do your research into the financial institution you’re borrowing from before you make a decision, and make each one of your payments on time to prevent yourself from getting into financial trouble.
If you need an online loan and you’re not sure where to look, visit us today. We will put you in contact with hundreds of lenders with the aid of just one request form so you get an answer quickly.
Don’t hesitate, request an online loan today.