“I need money desperately”. This has been the cry of many during times when the economy just isn’t sitting where it should, and job stability has become a thing inconsistent. But when a sudden emergency hits you in the face, where would you be able to get a hold of money in order to cross that challenge unscathed?
Here’s a brief overview of the different types of loans you can easily avail of securely and have a solution to the first statement of the first paragraph above. And why they’re beginning to be a go-to of thousands of Americans today.
Online Loans (a.k.a. Quick Loans)
Online loans are exactly what the name connotes. These are loans you can apply and qualify for through lenders whose services can be availed of through online platforms. We can tell you to go for a part-time job, borrow money from people you know (if they’ll be willing to lend you the amount you need asap), and other means you can think of. Only, these won’t provide you with an assurance of a follow-through.
What about regular loans? Going through your bank, or if you’re feeling unnecessarily adventurous, some uncredited loan shark. They’ll be able to hand over a certain amount. We won’t argue with that. However, not to discredit them, the process for the first is often long and tedious. Plus, the quantity that will be transferred to you will depend on a number of things, which lengthens the process even longer (more on this in detail below).
As for loan sharks, that’s quite the dangerous route to traverse. Similar to banks, the interest rate frequently is extravagantly high. You’ll end up repaying the amount of interest that accrues instead of the actual amount of the loan. Also, the part of not being accredited? Scary.
Accredited online lenders have systems set up to make borrowing and loan-receiving quicker than any other conventional means. They’re an excellent choice (and might we add, practical) for desperate times when cash at hand is lacking.
Benefits Of Quick Loans
Quick Lending Process
No more queueing in long lines at the bank, even when all you want to do is inquire about their available loans. No more being skeptical about meeting with loan sharks, and waiting for days before you’re given a response about your application.
With online loans, you can instantly have a glimpse of the terms and conditions of the loan of your choice, and even get a hold of a specialist via chat portal and/ or phone conversation. Right there and then.
No Need For Collateral
One of the reasons why it’s a challenge for many to acquire a loan from banks is that some warrant collateral in exchange. Collateral is guaranteed as a security so that in the event of not being able to fulfill your repayment obligation, it will be forfeited in place of the first.
In other words, when you default on your loan payments, the lender has the legal right to seize the collateral you’ve put down. It can be anything from your home (real estate), car, paychecks (salaried income), savings accounts, investment accounts, jewelry, and other valued collectibles.
The issue that most face is that it’s unnerving to use these valuable assets for collateral out of fear of losing them completely if something untoward happens and you’re unable to remain constant with loan payments. You can do away with this with online loans.
Accessibility And Convenience
That word alone, “online”, is such an invite. You can check for loan availability and eligibility wherever you are, from your computer or from your phone, 24/7. In contrast, banks have certain working hours that fall within your own, especially if you work in a 9 to 5 job.
Through online loans, there won’t be a need for you to take a half-day or full-day leave for this errand. Check on it during your break, after your shift, or when it’s convenient for you.
Competitive Interest Rates
Another great benefit of online personal loans. Interest rates are much lower than that of traditional lending companies, and/ or banks. You can test this out for yourself by inquiring about the online loan platform you have in mind.
Clarify what the interest rate is and if the rate will steepen after a particular period (they usually don’t). Then, utilize a loan calculator (you’ll find them anywhere on the web for free) and see that the interest rate you’ll be paying is very comfortable indeed.
Customized Repayment Terms
In relation to the above, the repayment options of online loans are tailored towards your income and your paying capacity. A feature that large banks and lending firms don’t offer. Your specialist will take the time to understand your situation and come up with a payment strategy that won’t tie you by the neck, so that you can still have room to pay for other necessary expenditures such as bills, rent, insurance, etc.
Big financial institutions don’t have this level of customer service. And this is reflected in their loan options as well. To avoid signing up for a loan that will force you to pay it back while you suffer in your day-to-day because it will leave you with so little, select an online loan instead.
Flexible Criteria For Qualification
Said big financial institutions have stringent qualifications when it comes to lending. A credit history with an almost-pristinely clean slate is commonly imperative. This can be troublesome if yours has a few blotches here and there.
This isn’t the case with online lenders. What’s vital to them is what your paying capacity is at the moment. Whether your previous record is spotless or not bears little weight over your qualification for a loan. Though this varies from online lender to online lender, they all generally follow the same approach.
You might be asked to present documents to prove that you’re currently employed, as well as other personal and financial paperwork. Once you fill out the application form online and submit these requirements, you’ll just have to wait for a few minutes to a few hours, or in rare cases, a day or two, and the lender will already tell you that you’ve been approved for a loan. It’s literally that easy.