If you are looking to get cash for that emergency car repair or simply have no more room on your credit card, an online loan might be one of the easiest ways to get the cash you need.
With an online loan, you do not have to leave the house, go to a bank, or meet with a lender. You can complete the online loan application from your computer or even from your smartphone, generally, the process can take just minutes to complete.
So, what steps should you take to get an online loan? Here is a look at how you can secure your online loan fast and get the cash you need.
How to Get an Online Loan
Decide how much you need to borrow
The first thing you should do is figure out how much money you want or need. You don't want to borrow more than you need. For instance, if you need to repair your car, get three estimates from different mechanics. After you have decided which estimate to go with, you should consider how much you can afford to pay monthly or bi-weekly. Then, you can take out a loan in that amount with payment terms that meet your needs.
Find the right type of loan
You can get many different types of loans online. If you are looking to spend money on your personal needs, you may want to get a personal loan. These loans give you the freedom to spend that money on any purchase that you want.
Be aware that with the freedom and flexibility of a personal loan often comes a higher annual percentage rate (APR), especially if you have bad credit.
Check your credit score
Before you apply for an online loan, you may want to check your credit score. Your credit score is a numerical value that measures your credit risk. The lower your credit score, the higher your credit risk. Those that are a high credit risk will likely pay higher interest rates for an online loan. Your credit score can fluctuate based on your credit activity.
Knowing your score in advance can help you determine your ability to qualify for a loan and the interest rate to expect.
Gather what you need to apply for a loan
When you apply for an online loan, you should gather certain information in advance that the lender will need to process your application. Here is a list of some information that an online lender may request:
- Personal Information
- Phone Number
- Date of Birth
- Social Security Number
- Driver's License
- Income Details
- Monthly Income
- Income Type
- Pay Method
- Pay Frequency
- Bank Name
- Account Name
- Account Number
- Routing Number
- Although lenders vary, you can generally expect an online lender to require that you meet at least the following:
- Be a resident of the United States;
- Be at least 18 years old;
- Have an active bank account in good standing;
- Have a regular source of income; and
- Have a particular minimum income.
Fill out your online application and submit
Now it is time to apply for your online loan. Be sure to visit the online lender's website from a secure wi-fi connection.
If you have followed the tips above and are prepared, online applications can typically be completed in a matter of minutes. Most online lenders will send an email to you stating whether you were approved or denied. Many online lenders will provide help to get you through the application process if you need any assistance.
If approved, in many cases, you can receive the cash you need, via ACH, by the next business day.
A majority of online lender's loans are subject to credit approval and verification. The actual approved loan amount and terms are dependent on each lenders underwriting guidelines and policies.
Reasons to Get an Online Loan
The reasons to get an online loan are as diverse as the people that need them. Each borrower's situation is different, and many factors influence each person's decision to apply for an online loan. Here are some of the most popular reasons that people get an online loan. Chances are, one of these reasons may be at the top of your list:
Whether you have mechanical issues with your car or a plumbing emergency that needs to be fixed, an online loan can help you get the necessary repairs to get your life back on track. If you are simply a little short on cash for the month, an online loan can quickly help you meet your monthly obligations.
If you need help paying for a relocation, an online loan could help you quickly get the cash you need to cover the cost.
Between gift buying and holiday travels, you could find yourself spending much more than you would expect. With an online loan, you could make sure that you have enough money to keep from getting stressed out from the holiday season.
A household appliance purchase
Household appliances always seem to go awry when you don't have a lot of extra cash. If you need to buy a new washer and dryer or a new dishwasher, an online loan can help you get the money that you need to complete that purchase right away.
You might find you are short when it comes to paying for your wedding. Maybe you still need to pay the caterer or pay for the bride's dress. An online loan could help you cover these costs.
Home improvement projects
Are you looking to put new tiles in the bathroom or add a new countertop to your kitchen? An online loan could help you get your home improvement project going right away.
Getting started with an online loan
When you need money right away, do not worry about having to go to a bank or a lending office. You could get the money - that you need - right from the comfort of your own home.
Be sure to know how much you need, check your credit score, and gather all the information you need to complete the application process. Generally, lenders will ask for your banking information, driver's license number, employer, pay schedule, and pay amount to get the application process started.