If you are searching for the best way to get a personal loan, storefront lenders are not your only options. Let us tell you about another option, online personal loans.
What are online personal loans?
Online personal loans are personal loans that are originated through an online application process. This means that you can skip traveling to a brick and mortar location. With online applications, you can also enjoy the convenience of applying outside of standard business hours.
This means you can apply on your own time from the comfort of your home, coffee shop, hotel etc.
And the best thing is, when you’re done, the money can be deposited directly into your bank account.
How do these differ from normal personal loans?
Online personal loans eliminate the need to go to a brick and mortar location. They also allow you the freedom of applying for and accepting your loan offer from a computer.
When you apply online you may get the luxury of an instant decision. If offered a loan, you can select your rates & terms instantly, although they may vary based on your credit history.
Online personal loans are similar to an installment loan, the key difference is you can complete your whole, loan journey online.
The loan amounts and interest rates are usually the same between online and offline offers.
What do I need in order to apply online?
When beginning the online loan application process, the first thing you normally need to establish an input is the desired loan amount.
After that, you will input some standard personal information like your first name, last name, and home address.
You will then be asked for information such as your social security number, proof of income, employment history and a valid photo identification.
In rare cases, you may be asked for your credit history.
Don’t be alarmed.
Most online lenders check your eligibility using what is called a soft credit pull, which will not affect your credit report.
A soft pull is when a person or company checks your credit report as a background check.
Once you have accepted the terms and conditions, your loan will be submitted for approval.
A hard pull will only be performed after you are pre-approved for the offer and have accepted it.
Am I eligible for approval?
If you want an online personal loan, there are some requirements you must meet.
Lenders generally require that you have a minimum net monthly income to ensure you have the ability to repay the loan.
The amount of disposable income you need to have may vary by lender, loan amount and your credit history. Customers also must usually be 18 or older with a regular source of income that can be verified.
Choosing your loan
Once you qualify, you will be provided with your loan offers.
These offers will include the loan amount, interest rate, Annual Percentage Rate (APR), monthly payment, and loan term (typically 12, 24, 36, 48 or 60 months, term lengths may vary by lender). So now all you need to do is select the offer that best suits your financial needs.
The final stage is the verification process where you typically are required to upload or provided proof of identity, income, employment, and the bank account where you would like the funds deposited.
How long does the online loan process take?
The submission of your information to the online lender service should only take a few minutes.
Their review of your application can take as little as minutes to a few business days.
Once you are approved, the money can be deposited into your bank account, sometimes as soon as the next business day.
Altogether, this process should generally take a business week.
Trends In online lending
Online loans are growing in popularity because of their convenience and availability.
Lenders are working hard to provide you with their best customer service experience online.
Now you must decide whether a physical branch or the website better suits your needs.
We hope this article served as an aide in this process.
Will you request your next loan online?
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