Best 10 reasons why you should apply for a loan online
Personal loans online are very popular as they offer many advantages. However, many individuals are confused as to when to apply for a quick loan online. Below are 10 reasons why you should apply for a loan online:
10 reasons why you should apply for a loan online
1. Medical Emergency: If you find yourself in a medical emergency and are worried about how to pay the bills, you can get a personal loan online through an online loan application.
2. Vacation: You can take a loan online to pay for your flight ticket or your family vacation.
3. Pay off your credit bills: All of us are in a situation where we need extra money to pay credit card bills on time to avoid extra charges, a personal loan online application can help you with that.
4. Home Renovation: People also use online loan online applications for home repair expenses or renovation.
5. To buy a new asset: Do you want to buy that new phone that is in trend? You can apply for a quick cash loan online to buy any new gadget you want.
6. Unexpected Expenses: We will in a world where unexpected things are happening all the time, quick cash loans online can be used to fulfill that need.
7. Academic Purposes: Want to study further for professional development? You can apply for a loan onlinethrough a personal loan application for educational fees.
8. Finance Your Business: Got a great idea? But need some credit? An online loan online application can help you get started with your goals.
9. Debt Consolidation: Managing your outstanding loans online can be a daunting task. This is where an online loan application can come into the picture to balance your financial balance well.
10. Festive Shopping: Back home during festive shopping? Well, you can buy the desired gift for your family and friends with an online personal loan.
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9 Benefits of Choosing an Online Loan Application
Zero Physical Documentation:
When you decide to borrow using an online loan app, you avoid visiting a bank or any other office. You can upload the required documents to avail the loan on the loan app or website.
Many reputed banks, institutions and companies offer instant loans with a hassle-free and time-efficient loan application process. PaySense offers instant personal loans with a simple application. All you have to do is download the app or visit the PaySense website, sign up, upload the required documents and your loan will be approved. You will be notified when your loan request is processed.
Traditionally, loan application took at least a few days. In some cases, loan approval was extended by one month. But developments in the fintech sector and the launch of online loan apps have changed that completely. Average loan approval time today is measured in minutes. With the PaySense Instant Loan App, you can get your loan approved within a few hours.
Flexibility of loan amount and tenure:
When you take an instant personal loan, you get the flexibility to choose the loan amount and loan tenure. You can take a loan of Rs. 5,000 to Rs. 5,00,000 with online money loan apps. You can get any loan amount from this bracket depending on your eligibility. The same thing goes with the loan tenure. You can take loans for terms ranging from 3 months to 60 months with online loan apps.
Online loan app offers the facility of all-time accessibility. All you need to do is download an app from the Google Play Store or the Apple App Store, and you can apply for a loan at any time of the day. With Money Loan App you get access to money anytime.
You no longer need to go to the bank and wait for hours to get a loan. With simple, easy-to-use online loan applications compatible with all devices, you can easily get loan approval from the comfort of your home. All you have to do is download the PaySense app and apply for the loan, which hardly takes any time or effort.
Flexible end use:
Another advantage of availing loans from online loan applications is that you can use the money for your personal or business needs. You don’t need to state any reason for taking a loan. You can use your instant loan money to buy a property or spend money for an emergency such as a medical emergency. You do not need to give any reason to the lender for taking the loan.
Direct transfer to your bank account: Often, even after your loan is approved, the process of transferring the loan amount to you can be time-consuming and complicated. But not so with online loan apps that offer direct transfer option.
Instant loan apps offer instant personal loans in the range of Rs. 5000 to Rs. 5,00,000. You can get instant loan as per your eligibility and requirement from instant loan apps. So, the next time you want to get a small-ticket loan you don’t have to worry because you know how beneficial it is to get a loan using online loan applications.
What is the easiest bank to get a personal loan from?
The easiest banks to get a personal loan from are USAA and Wells Fargo. USAA does not disclose a minimum credit score requirement, but their website indicates that they consider people with scores below the fair credit range (below 640). So even people with bad credit can qualify.
Wells Fargo typically requires a credit score of 660 for their unsecured personal loans. However, they also offer secured personal loans that are available even with low scores. A Wells Fargo secured loan requires collateral in the form of money in a Wells Fargo savings account or CD.
Most banks that offer personal loans require a credit score of at least 660. Some also require higher scores such as Citizens Bank (680) and Barclays (700).
Easiest Banks to Get Personal Loan:
- USAA: Will lend to people with less than fair credit (scores below 640)
- Wells Fargo: 660 minimum credit score for unsecured; There is no minimum to secure
- American Express: 660 minimum credit score
- Find: 660 minimum credit score
- TD Bank: 660 minimum credit score for existing customers (750 for non-TD customers)
These credit score requirements are either official lender information or consensus from third-party sources.
The average person has a credit score of over 660, which puts them in a good position to qualify for a personal loan from most banks. But if you have a low score, you can apply with USAA or get a secured loan from Wells Fargo.
You may also want to look outside the banks. Some credit unions and online lenders offer better chances of getting approved with bad credit. For example, Avant’s minimum score requirement is 600 and LandingPoint’s is 585.
Pros and cons of online loans
It’s a good idea to weigh the pros and cons when deciding whether to go with an online lender versus an in-person lender like a bank or credit union. Certain features may vary from lender to lender, but here are the general ones you can expect with an online loan:
Convenience: You can complete the entire loan process — from pre-qualification to signing — from your computer or, in some cases, your phone. Some banks offer an online loan option, but you may need to visit a branch to complete the application.
No-Risk Estimates: Most online lenders let you pre-qualify in minutes and preview estimated rates without affecting your credit score. (All lenders require a strict credit check before you finalize a loan.)
Quick and easy shopping: Each online lender uses its own underwriting formula, so rates can vary between lenders. Comparison websites allow borrowers to fill out a single application to view loan offers from multiple lenders. This is easier than banks or credit unions that can only offer loans online in person or require you to visit a branch during the application process.
More than credit score: Some online lenders look beyond your credit score and credit report when making an approval decision. They may consider your education or occupation or ask to see your bank account transactions to understand your financial behavior. These alternative ways to evaluate an application can improve your chances of getting a loan online if you’re new to credit or have a low score.
Debt Help: With some online lenders, borrowers can choose to send loan money directly to creditors with a debt consolidation loan online, eliminating the burden of personal credit card payments.
More expensive than credit unions and some banks: On average, loans online from online lenders are not as cheap as credit unions. And if you already have a relationship with a bank, it may offer you lower rates than online lenders. Compare rates from multiple lenders online and offline before you take out an online loan online.
No face time: Some online lenders have physical locations, but many service loans digitally only. This can be a challenge if you ever want to speak to a representative in person.
Smallest Loans Not Available: Online loans under $500 can be hard to find at rates below 36%. Many online lenders have loan online minimums of $1,000 to $2,000. Some credit unions may provide small loans starting at $250.
Predators lurk: Reputable online lenders compete with predatory online lenders. Reputable lenders check your credit and ability to pay, and they typically have an APR that tops out at 36%. Predatory lenders typically don’t check credit, but you pay for the added risk with an APR over 100%.
Are online loans safe?
The safety of online loans depends on the type of lender. It’s always recommended to do your research and choose reputable lenders.
If you’re looking for a small loan, online personal loans have lower rates and more manageable repayment terms, even if your credit is bad. Many can fund a loan for as little as $1,000 within one business day of applying for it.
Payday and no-credit-check online loans
You may also come across online lenders that offer no-credit-check loans online and payday loans. While they seem like easy options that don’t require credit checks, both of these types of loans can be predatory with rates in the triple digits.
No-credit-check loans do not review your credit history and can be expensive. The loan amounts typically range from $100 to several thousand dollars and are repaid in fixed amounts over several months. But these loans should be considered only as a last resort after you’ve exhausted alternatives to high-cost loans.
Online payday loans are a fast way to get loans for amounts less than $1,000, especially if you don’t have good credit. Once you have received your loan, payday lenders typically draw directly from your bank account for payments. But these loans are not cheap, with APRs close to 400%, which can quickly lead borrowers to owe more in interest than the original loan.
How to get online loans for bad credit
There are ways to qualify for online loans for borrowers with fair or bad credit. For example, you can add a co-signer or co-borrower to the loan loan online application to boost your eligibility or get a lower rate or higher loan amount. This person is responsible for the loan amount and any fees if you fail to repay.
» MORE: Personal loans with a co-signer
You can also apply for a secured loan, which requires putting up collateral, like your car or a savings account, to help guarantee the loan online . However, you risk losing the collateral if you default on the loan online.
If you don’t need the loan immediately, you can take steps to build your credit before applying.
» MORE: How to get a personal loan online with bad credit
How to shop for a loan online
Here are a few questions to ask as you search for online loans.
How’s my credit? Know your credit score before starting an application. It can give you an idea of how much a loan online may cost you and affect your budget. Many online lenders consider additional factors, such as your education history or profession, in conjunction with your credit score and credit history.
Is the APR below 36%? The sum of the interest rate and all fees is known as the annual percentage rate, and the APR you receive largely depends on your credit. Financial experts and consumer advocates agree that 36% APR is the acceptable limit for a loan online to be affordable to a borrower. If an online lender has rates above 36%, it could be hard to manage the monthly payments, even if they fit into your budget.
Use a personal loan online calculator to get an idea of estimated rates and payments on a personal loan.
Have I compared online loan features? Some online lenders offer features like flexible payment dates, an option to refinance an existing personal loan online, or the ability to add a co-borrower or co-signer. Consider and compare loan features like these when shopping for an online loan.