Online banking has been an establishment for several years, but online loans have been slower to impress. Nowadays, there are now plenty of good online lenders and brokers to choose from. With the benefit that the majority of application forms are in an online format rather than a million sheets of paper. Online loans are changing the way people borrow money.
What are Online Loans?
As the name suggests, online loans can be applied for, processed and managed online. There’s no need to call, complete paperwork or attend meetings.
LoanPigUSA is an advertising referral service to qualified participating lenders that may be able to provide loan amounts between $100 and $1000 for cash advance loans and up to $5000 for installment loans.
What are the benefits of Online Loans?
Online loans are a popular option for a number of different reasons. The newest generation of lenders is focused on making it easy to borrow. The main advantages of online loans are as follows:
Quick approval: online lenders can tell you more or less instantly whether or not you’re approved, how much you can borrow, and what your payments will look like.
Better rates: it always pays to shop around, and online lenders often charge less than you’ll pay elsewhere. You should see lower interest rates and smaller service fees (if any).
Easier approval: banks and credit unions have grown skittish over the years. It’s easy to get a loan if you’ve got great credit. Online lenders are more likely to approve lower credit scores and use “alternative” information to evaluate your creditworthiness (such as utility payments).
Unsecured loans: most online loans are unsecured, meaning you don’t pledge collateral to help get approved. That can make them safer than borrowing against your assets. If you fail to repay an unsecured loan, your credit scores will drop (among other things), but your car won’t get repossessed.
What are the different types of Online Loans?
The three main types of online loans are: payday loans, short-term loans and personal loans.
Payday loans: very short-term loans which are usually repayable within thirty days. Intended for short-term, small amounts of borrowing, these can command significantly higher rates of interest than longer-term borrowing.
Short-term loans: usually repayable within a few months (with a maximum repayment period of a year or two). These are intended for emergency purchases which may be larger than those available through payday loan borrowing.
Personal loans: these are not only used for emergency borrowing, but rather for large items which are needed or which represent a good investment if bought now rather than later. Personal loans may be repaid over several years
How to borrow
Getting a loan online is similar to getting a loan anywhere else – although it will probably feel easier. You’ll need to provide personal information such as your Social Security Number and address. Depending on the lender, you’ll also need to provide financial information (such as information about your job and income, your expenses, and more).
To get started, just pick a lender or apply here and we can refer you to a panel of lenders. The process should take about 10-15 minutes. You need to shop around, and internet lenders need to be included in your search. Stick with reputable lenders, and you should be able to avoid trouble.