Getting loan or borrowing money is the only answer to fulfill your needs if you have no savings. There are many ways to get cash from banks, credit card unions, online lenders, family or friends for an emergency expense. But every option has its different features and pros and cons.
Online lenders have made it possible, easy and quick ways of getting cash without much hassle while sitting in the comfort of your home. You do not have to get ready and go to a bank to apply for loan. Applying for personal loan through online lenders is convenient and fast.
Usually the monthly expenses are planned but emergencies can occur any time without warnings. Purpose of getting personal loan may be any one of these, medical emergency, household expenditure, debt consolidation or any other. Here are some pros and cons of getting loan from online lenders.
Convenience
In case of emergencies, you need urgent cash and personal loan lenders help you get cash without the hassle and waiting to get approved. Banks procedure is longer and boring than online loan companies. You get cash within hours without making trips to banks. Online loan procedure is simple and quick which you can do from anywhere using your mobile phone, laptop or tab. The loan is approved, and you get money direct in your account within a few hours.
Comparing the interest rate
The borrowers have the option to compare the interest charges and APR rates of different online lenders on their websites. You can easily get knowledge of suitable interest rates according to your credit score. Personal loan is unsecured loan, so usually banks charges more interest rate on personal loan than online lenders.
Loan anytime
Banks close after their working hour while the online lending companies have no specific time to close. In emergency needs, there is no time limit and you may need money at night. Online lending services are available anytime and anywhere. You just need internet and mobile phone to apply for loan and get access of cash.
Soft credit check
Traditional banks are very particular about credit history check and do not accept your loan application. The online lenders let you apply after a soft credit check and approve it even with low or no credit score. A hard inquiry on your credit report hurt your credit score and badly impacts it.
Some online lenders may give you loan with poor credit and also may offer you good interest rates.
Various lending options
You will find lots of lending companies online to choose from. Their websites have all information you require to know before applying for loan. You can easily compare their interest rates, charges and requirements, and read the reviews. Shop around to check their trustworthiness.
When you are searching for a personal loan online, keep in mind to look for these features:
Low-interest rates
Low origination charges
Low and fix monthly payments
Longer payment periods
Warning signs of fraud or scams
No hidden charges