How much do you need?
What Are Online Loans?
An online loan is a form of personal credit that is applied for and completed online. Although both online and offline lenders allow you to submit parts of your application online, often offline lenders need you sign the final paperwork at a physical branch.
How Are Online Loans Different to Offline Lending?
Securing credit online is often more convenient than offline companies. The process is all online from application to having the money in your bank account. Everything can be done from the comfort of your computer, tablet or smartphone.
Acquiring credit online could help you identify lower interest rates. This is because the costs of operating online are less expensive. Thus, loan companies often pass these savings on to you.
Can I Get an Online Loan with Poor Credit?
Securing online cash loans with a low credit score may seem intimidating if your rating is less than perfect, but it is possible to do so.
While all customers need to undergo a credit check, providers offering online finance will also take into account your current circumstances. Understanding your present situation, helps lenders decide if you can afford your loan repayments.
If a lender believes you cannot repay your loan, they will not approve your application. This is to protect themselves from people not paying them back.
How Do I Apply for a loan Online?
Applying for online finance is simple and quick. First, gather important information such as:
Your regular income and expenditures
Details of your current employment
Bank details (for the transfer of your money if approved)
Your next step is to find a lender or credit broker online to submit your application to. An internet search will provide you with many options which can be confusing.
The important thing is to choose a credit provider registered with the Financial Conduct Authority (FCA). FCA registered companies commit to responsible lending practices that protect the customer.
Once you have chosen your provider you can apply by filling in their online application form. The lender will carry out affordability checks as well as your financial commitments.
Within minutes you could have a decision on your application. If approved, a monthly payment schedule is set up. Then the money could be in your bank account on the same day.
How Much money can I Borrow?
How much you can borrow depends on the lender you apply with. Typically you can borrow from £100 - £5,000. How much time you have to repay your online instalment loan can be anywhere from 3 to 36 months.
Some lenders will approve a maximum loan value for all new customers, rising on receipt of regular payments.
Advantages of Online Loans
Online payday loans have the following advantages:
Many more lenders exist online than on the high street
You can apply from your mobile anytime - which is especially useful if you need a quick loan
An online loan application is faster than travelling to physical location.
Disadvantages of Online Loans
There are a few pitfalls to applying for loans online which are:
Interest rates vary
You may be offered a lower amount than you applied for