Are you tired of going to the bank, waiting in line, and getting told to your face that they will contact you in a few weeks after reviewing your application and another few weeks to have the funds in your bank account?
If so, then you might want to consider online loans. They are very convenient as they are fast and easy, especially when looking for emergency funding. And with its rising popularity, many online lenders are offering potential borrowers a good rate on various loan types.
But what are online loans, and why should you opt for one?
What are Online Loans?
As the name implies, you can apply online for these loans. They’re the same loan products that you can get from traditional banks and lenders but online. They are incredibly convenient if you’re looking for a fast and easy way of funding without the hassle of going to a physical location.
Why should you go for online loans?
Convenience
Convenience is the defining feature of online loans. It’s especially true nowadays that smartphones can do what computers do, and almost everyone has access to the internet.
Not only that, but Millenials who grew up having this kind of technology are one of the fastest-growing demographic in terms of personal debt nowadays. Also, this generation tends to pick out more technologically advanced companies as their source of loans rather than traditional banks, even though the loan products and the process are the same.
But why? Online lenders tend to have a more streamlined application process that is a massive appeal to a demographic who grew up comfortable with technology. With almost everyone having smartphones and access to the internet, it’s no wonder why.
Ease for People with No Credit History
People just starting their financial lives will find it hard to be approved for a loan because of their non-existent history. Not to mention that most of them also still need to get a credit score. It will prompt them to opt for alternatives like online lending, where the application is easy and approval is fast.
Online lenders are more lenient if you have a bad credit score. Some don’t just refer to your credit score but also other factors like your income, monthly repayments, etc. Others even cater specifically to this demographic, which puts them in a good light among consumers with poor credit scores.
Fewer Requirements
In a traditional application for a loan in a bank, one of the things that you should bring is documentation.
This documentation can range from your personal information to your income salary. That’s not even all of it if you have a poor credit score, as the bank will require more proof of identification. However, online loans only need some of that.
Most of the time, they only need a valid ID as proof of identity and a document for their income. Online loans, particularly unsecured ones, don’t require collateral, so you’re practically set.
24/7 Approval
Banks tend to have no business during the weekends and holidays. It means you only have to count business days for every transaction, which can be a massive hassle if you’re in a hurry. The approval can also be a long wait that can span weeks and, for some, even a month.
However, with online loans, the bulk of the application process is taken over by computer software. Your application process is still underway even if no one is in their offices.
If you submitted all the required documents, you could get your approval as fast as the same day and get your money on the next.
Easy Tracking
We tend to get impatient when we’re in a financial emergency. In the former, you might get impatient that your money is not in your bank account yet. It will prompt you to get in your car and drive to the bank to ask about your loan status, only to be told to wait a few business days. Isn’t that irritating?
But with online loans, they’re usually transparent about their transactions. Their hotlines are usually online 24/7. As mentioned earlier, you can immediately get the money since online loans are known to be fast, with approvals given in 2 or 3 days and some even on the same day.
Final Words
Traditional banks are reliable in terms of security and trust, but if you’re looking for fast and easy funding, you might opt for online loans instead. They’re not too strict with creditworthiness and are handy when you’re in a pinch. If you’re tired of rejecting your loan applications left and right, go for online loans, as they are faster and easier to get than traditional loans.