Justine Clan 2016-08-19 07:00:00
Online loans are a popular way to borrow money to handle unexpected expenses. Applying for online loans is fast and easy, and can be more helpful than trying to get a small personal loan with your local bank.
If you have never applied for an online loan before, here are some tips to help you figure out how it works.
1. Understand the difference
You first have to understand the difference between a traditional bank and an online lender. Unlike traditional banks, online lenders only specialize in online loans, and are not offering savings accounts, checking accounts, and credit card services.
Online lenders also want to make it easy for you to get the online loans you need. They will generally get you approved quickly, and some of them can offer you much better rates than traditional banks can.
2. Know your credit score
Online lenders might not perform credit checks the same way that traditional lenders do, but they still should research your credit score. It’s always easier to get loans if you have great credit, but online lenders often approve customers with lower credit scores.
Knowing your credit score will help you determine if you will be approved instantly for your online loans, and whether or not you will be able to borrow a high amount of money.
3. Find a reputable online lender
The best way to find a reputable online lender is to make some research online. You want to get your online loan from a lender you can trust, and who can offer you great customer service on top of getting you approved quickly.
Stay away from online lenders with a bad reputation. Read online reviews from customers who are satisfied with their online loans and with the services they received, and choose the best online lender for your situation.
4. Read the small prints
Before you apply for your first online loan with an online lender, make sure you understand how they do business. Browse through their website to find information about their interest rates, and about how you will have to pay back your loan.
Read about what the online lender will do to determine your credit worthiness. By understanding the conditions surrounding the online loans offered by this online lender, you will be able to avoid bad surprises.
5. Fill out the loan application form
Now that you know everything there is to know about your online loan, it’s time to fill out the loan application form you can find on the lender’s website. This should only take you a few minutes, but make sure your internet connection is perfectly secure before you begin.
You will certainly need to provide personal information like your address and your Social Security Number, as well as some financial information concerning your job, your income, and more. Take the time necessary to fill out the form correctly, and submit it.
6. Wait for your application to be approved
After you have submitted your application form, all you have to do is wait. Online lenders are generally able to approve applications very quickly. You will probably be contacted to confirm all the details of your application, and if all goes well, you should be able to receive your online loan during the next business day.
Some online lenders are offering a same-day wire service, so if this is the case with the lender you have chosen, you will be able to receive your money almost immediately.
Enjoy your online loan, and don’t forget to pay it back on time to avoid hurting your credit score.