Most of us will need to borrow some money at some point in our lives perhaps for car repairs, to pay the bills or a loan for a holiday. Traditionally to organise a loan you would have to make an appointment at a bank, dress to impress and make your case in person.
These days applying online has many benefits making borrowing quicker and easier by avoiding that trip to the bank, which is probably why the popularity of online loans is rapidly increasing! Here are 3 top advantages of online loans.
Convenience
Applying for a loan via the internet removes the need for you to make an appointment to see someone face to face making it very convenient! You do not need to leave the house to apply for your loan and you can fit it around your daily timetable. As long as you have your budget to hand, you should find that the application forms are easy to fill in and they don’t take very long to complete. Of course, this shouldn’t mean that you shouldn’t take the time to really think it through as you will need to make sure your finances are in order and that you can afford the repayments.
As well as being quick to fill out online loan applications are open 24 hours a day which means you can apply at any time of the day or night, even on Bank Holidays, whereas high street loans restrict you to applying within the store’s opening hours. Online applications will require some processing time but you can get your side of things done any time. Millions of people apply for High-Cost Short Term Credit solutions each year for all manner of things, check out the City Consumer Credit Index from Cash Lady to see the monthly consumer trends by City.
Comparison options
We are a world of comparisons and whereas applying in a physical location, such as a bank or a loan shop, usually, means that you are asking for money from just one lender, applying online means you have the chance to do some research and gather several different quotes and options before making your choice. There are several loan comparison sites such as Moneysupermarket and Comparethemarket giving you the opportunity to compare loan prices and interest rates, along with terms and features of the agreement.
Doing your research will also allow you to compare loan types; you can consider a traditional payday loan which works alongside guarantor loans, revolving credit medium-term term borrowing. Also, Peer to peer loans are a further option. Simply put there is a wider range of lenders and products to choose from when you look online so you don’t have to be restricted to what your high street bank will offer.
Personalised lending decisions
By filling out your details via an online application loan providers can use sophisticated computer algorithms to make decisions based on your details and produce personal options, better suited for your unique needs. When applying for a traditional style loan the decision is usually made based on figures and numbers such as your credit score and previous dealings with the bank will probably play a part.
Online applications use technology that will look at a wider range of factors, allowing lenders to see the bigger picture. These technologies are advancing every day and because of this more and more data points can be incorporated into the decision making in order to build a more accurate picture of your risk level.
For more information about advice about taking out a loan visit the Money Advice Service website.
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