Last Updated on May 21, 2021 by MoneyVisual
Have you ever found yourself in an emergency where you require quick funds, but you are so low on cash? The frustration and helplessness you may feel can be overwhelming.
Your car breaks down just before a big trip, your electricity bill just expired, and your payday is not for another few days, your kid is suddenly running a high temperature and needs medical attention immediately.
It could even be an unforeseen circumstance that happens to your business, and you need a quick credit to keep things afloat.
All of these could happen at any time. The worst time for it to happen is when you are low on cash. Don’t be overwhelmed. There are quick online loans that you could use to solve your emergencies at just the right time.
Here is essential information you need on your fingertips if you are to obtain an online loan.
What are Online Loans?
Online loans are personal loans that you require for a short term basis. They usually do not require a collateral. They are quite easy to access. Another useful thing about quick online loans is that they credit you within minutes of requesting for a loan. So far as you meet the lender’s criteria, which usually entails you having a regular source of income or evidence of employment. The difference between an online loan and a bank loan is that unlike a bank loan, qualifying for an online loan may not always require to know your credit history before you are credited. If your existing account is satisfactory, you are good to go.
How Much is the Interest Rate?
Interest rates among online lenders vary; it depends on the lenders. When you need a quick loan, you may need to check out a few lenders to get the interest rate they charge, before deciding on choosing their services. However, due to the competitiveness of these lenders, the interest rate does not vary so much.
Interest in online loans is affordable to follow through. These lenders want you to be able to repay their loans and return to take another one when the need arises.
Who is Eligible to Apply?
Anyone 18 years of age and upwards is eligible to apply for these loans.
If you have a bank account AND a steady source of income such as being employed, you are eligible to apply for a loan, and you would be credited in no time.
What are the Terms of Repayment?
These are short term lenders such as tribal lenders usually require completion of payment within a few months after loaning you the money.
Most online lenders spread out how they’ll like to be repaid, and within a few months, you should have successfully repaid the loan plus interest. The good thing about any loan is that terms of repayment and interest rates are related upfront. So make sure you are entirely satisfied with the payment plan, and you can comfortably repay the loan within the stipulated time.
What if I am Unable to Repay?
If you are unable to repay the loan within the stipulated time, your credit rating would very likely drop since there is no collateral. It is good to do thorough research and ask all the relevant questions from the lender before requesting a loan. Being knowledgeable of all the rules would help you avoid getting into difficult situations.
Interestingly, the lenders take a look at your source of income, and at how much you earn and offers you a loan that is well within your budget so that you would have no difficulties repaying within the stipulated time.
Benefits of an Online Loan.
You may already have begun to see the benefits of an online loan, and many online lenders offer loans not only for personal reasons but also for businesses and for education or even to pay for your mortgage.
Quick Approval – unlike conventional banks who take a lot of time, maybe days before they inform you whether you have been approved of your request for a loan, online lenders tell you within a few minutes whether you have been approved to receive a credit from them or not. This is why online loans are useful for emergency cases. You could immediately apply to another lender if the initial denied your request.
Your Credit Score – No matter how low your credit scores are, you can quickly get approved for a loan. Poor credit scores could easily be a reason you are denied a loan from banks or credit unions. Online lenders do not need to check your credit score history before deciding to offer you a loan, and even when your score is low other criteria like your payment of utility bill, could be a determining factor if you would get a loan.
Better Interest Rates – Interest rates for Online loans are much cheaper and easier to pay than what can be obtained from bank loans or other credit unions. Online-only lenders do not face the same regulatory costs as banks do with physical branches, and because of this charge cheaper interest rates than these institutions. The service charge is also less expensive if there is any at all.
Online lenders also do not have a pre-payment penalty, require a lot of documentation or even an in-person meeting before approval is given. They only need necessary information such as your name, address and social security number. Any other documents that could be required for depend on the lender such documents may be your credit report.
No doubt emergencies happen with everyone, and there is a tendency to feel overwhelmed and distressed when there is no hope of a financial solution. A quick online loan may be the financial solution you are looking for to solve your personal or business emergencies. It is relatively more comfortable and faster to obtain online loans, and also the interest rates and repayment plans are modest and easy to follow through than getting a loan from the bank or a credit union.