To borrow or not to borrow? This is probably the question that is running through your mind when you think about an online loan.
Would it be safe? Would you even qualify for one? How fast can you get it into your hands after application? Won’t they look at your credit score?
Many people go through these questions at some point. Life happens, something goes wrong when you least expect it, and you need some quick cash to settle matters before they get out of hand. You may not be able to get a soft loan from a friend or a family member, and bank loans simply take too long to even try.
This leaves you with virtually one option, especially when you want the money fast, and that’s quick online loans. However, there are certain things you should know. Read more on getting quick loans online.
The Benefits of Quick Loans Online
Several benefits come with quick loans online, some of which we’ll look at below.
1. Quick Approval
One of the most significant advantages of quick loans online is the fact that they are actually fast. Money lenders online will be instantly upfront about how much you can borrow, when you’ll get it, and the payment timelines.
2. Better Interest Rates
Money lenders online offer different rates, and it’ll pay to shop around, but you can be assured that it’ll be less compared to traditional money lending institutions like banks. Online-only lenders may not even have a service fee, and they don’t have similar overhead costs, such as banks and credit unions. This means they don’t get to pay similar regulatory costs, which allows them to charge lower interest rates.
3. Easy Approvals
It may be easy to get a bank or credit union loan, but only if you have a good credit report. Still, even though you may get the approval, getting the cash in hand will be another matter entirely. However, if you have bad credit or are still building yours, banks will not come through for you.
On the other hand, most money lenders online don’t look at credit scores but choose to use alternative information instead. For instance, they may use your utility payments to check your creditworthiness.
The next most prominent advantage is that safe online loans are unsecured. This means that you’ll not pledge collateral to get an approval. Of course, there will be consequences if you don’t settle your unsecured online loan, such as a credit drop. However, you won’t be facing foreclosure or your car getting repossessed.
What Should You Expect When Applying for an Online Quick Loan?
When dealing with private lenders in Canada, you need to expect the same level of professionalism you would expect from traditional lending institutions. However, getting a loan online is more convenient because you don’t have to wait for long conversations before the lenders approve the loan. There will also be less paperwork involved, and you can complete the process from the comfort of your home.
Anything You Should Be Wary Of?
Unfortunately, it may not be easy to find a legitimate online quick loan lender in Canada, and you need to be careful about who you deal with. You may also fall prey to predatory payday lenders. Payday loans are very appealing, especially if you need the money really fast, but the possibility of being stuck in the loan cycle is highly discouraging.
Payday loans are essentially more expensive in terms of interest rates and are offered for a very short period of time, usually a month. You’ll get a payday loan the same day you apply, but once you accept the terms, you may need to get another payday loan to repay the first. This cycle could go on for months, if not years, getting very hard to break, and if you must get one, it should be your last option.
What Will You Need to Apply for the Loan?
Most money lenders online have a streamlined application process that allows you to complete everything online. You may need your contact details, a Social Insurance Number, and possibly some income details. Depending on how much money you want, lenders may ask for your tax returns, bank statements, or pay stubs to verify income.
What Fees and Interest Rates Should You Expect?
Some lenders take advantage of desperation to charge exorbitant interest rates or high application fees. This does not apply to all lenders, though, and with a little research, you should be able to find a lender with reasonable interest rates. Most of them charge 20% or below, but you should check for rates on their websites.
How Do You Get the Money from the Online Lender?
Once all documents have been accepted, and the loan has been approved, the online lender will release the funds to you. It may be possible to get the money through a check, but for faster services, most people prefer to have it transferred to their bank accounts. If you opt for this option, the lender will electronically send the money to the account number you provided.
So, How Do You Apply For Quick Loans Online?
Not all people who apply for quick loans online get positive feedback from lenders, and it may heavily depend on whether you can prove you have an ability to pay it back. If you decide to get a quick loan online, here is a step-by-step guide on how to go about it.
1. Determine What Type of Loan You Need
Money lenders online offer different types of loans, so do some research to determine the terms of each one before making that request. For instance, as stated above, you’ll need to pay off a payday loan in a month, and without that knowledge, you may be caught off guard when the lender asks for it. Installment loans are much better as they offer flexibility.
2. Identify a Genuine Lender
You’ll have a higher chance of qualifying for a quick online loan and actually getting the money if you deal with a legitimate lender. Don’t believe everything you see or read on the internet.
Read customer reviews and testimonials then review the loan terms and conditions. You may also need to check the law governing safe online loans and don’t be too hasty to provide personal information to avoid identity theft.
3. Consider Your Credit Score
Most lenders will look at your credit score before deciding what amount of money you deserve. Of course, bad credit will not disqualify you from a quick online loan, but you’ll need a stable income source. You also need to identify the lenders that are willing to deal with bad credit of yours is bad.
4. Consider Your Income Amount and Source
Most lenders will not approve a loan that you may not repay, so even though the online loan application process is simple, don’t apply for more than you can afford. Consider your income and check the minimum and maximum amount set by the lender then ask for money in that range.
State your sources of income when applying for the loan. Understand that you may get a faster approval if the amount you ask for is far below the income.
5. Provide Full Details When Filling Your Forms
Given that the transaction will take place online, money lenders online need personal details. Ensure you fill out all the necessary information and provide the documents requested by the lender. Fast responses to lender requests on additional information may show your commitment in not just getting, but paying the loan as well.
6. Try Not to Send Multiple Requests to Different Online Lenders
Some people don’t take online borrowing seriously and may not expect all lenders to respond to their requests. It’s not advisable to send multiple requests to multiple online lenders. Instead, research the most trusted and professional lenders and apply to the top one.
Get Quick Loans Online With Us
After following these steps, you’ll receive your money in the bank account you provide, and you can take care of your problem. Regardless of why you need quick loans online, shop around to find professional services, or simply consider checking out our website for a quick loan.