A Guide on Getting a Loan Online

A Guide on Getting a Loan Online

When most think of asking for a loan, the image of attempting to be approved by a loan officer will come to mind. Lately, things have changed significantly in the loan industry. With a growing desire to complete banking and borrowing online and from your phone, online lenders are beginning to revolutionize the loan process.

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While some might be hesitant to take the plunge with an online lender, there are a variety of benefits. Online lenders can tell you almost instantly whether or not you’re approved, how much you can borrow, and even what future payments will look like. In addition to time saved, it is possible to get better rates with an online lender. This is where it can really pay off to shop for deals. Because online lenders don’t have nearly as much overhead as banks, they tend to have lower interest rates and smaller service fees.

While the process of applying can be intimidating, there are only a few steps to finding a good lender:

1. Gather all the information you’ll need.

When you are ready to peruse an online loan, there are a few key things to remember. The application process for Getting a loan for the first time only takes about 15 minutes in most cases; however, it is still advised that you gather all of your personal information before you begin the process. Online loan companies will still need information like your SSN and address, as well as information about your income, expenses, and more.

2. Decide which type of loan is best for your needs

While there is an option for payday loans online — something that is typically advised against as they’re high cost and very short term — Online lenders are more likely what you’re looking for. These lenders started off advertising as “eBay for loans;” simply put, anyone could create a listing and ask for money and anyone could bid to lend. Now that this sort of loan has gained popularity, heavier hitters are working with P2P loans. Sometimes it’s not an individual who does the lending, but a bank or other institution.

3. Shop around for the best deal.

For those looking for P2P lenders, the industry-leading options are Lending Club and Prosper. That being said, you will want to research each option carefully to find the proper P2P loan for you. Remember to compare lenders and go for the option that is the best fit for your situation. For example, if you’re looking for a business loan, Kabbage or OnDeck might be a better fit for you.

The bottom line is that it will take some time to shop around to get a great loan. Everyone’s need is different; therefore, the solution that worked for your coworker might not work for you. While you might start by checking with your bank, don’t rule internet lenders out too early. As with any loan, it’s best to try to find the best deal and go with a company that really understands and treats you right.

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