Traditional vs. Online Lending Companies
Getting personal loans used to mean going to regular lending companies, like banks, national lending companies, and small lending companies. This method has been the standard up until several modern lending companies have started offering personal loans online.
If you still think that applying for personal loans face to face is still the best method, read on to understand why you should consider online personal loans.
When you apply for personal loans at regular lending companies, you have to go through several procedures including personally going to the lending company office to submit your application form, requirements and for an interview. If you wish to find the lending company that has the best packages and the best services, you have to repeat the steps in every office you visit.
If you are pressed for time, the traditional method is not your best option. Fortunately, you can choose to apply for personal loans online. You can scout for lending companies, canvass various packages, find out which company has the best service, and select the package which will best suit you. You can do all these from home. No more waiting for the next business day to shop for lending companies and no more missing a day of work to apply for personal loans.
Prompt Processing of Applications
With regular lending companies, you have to wait for around ten to thirty days for your applications to be processed. That is a long period of anxious waiting and it is definitely not the best scenario for people who need the funds right away.
On the other hand, applying for personal loans online is faster. All you have to do is fill up the online application form, attach the other requirements, and submit. The processing period for online applications is also shorter. Since online lending companies operate for twenty-four hours, the processing goes on, even beyond the regular business hours.
Applications for cash advances could even be approved a few hours after submission. Clearly, applying for personal loans online is the best choice for people who are in need of cash immediately.
More Secure Applications
Regular lending companies require some documents for your personal loans application to be processed, and these include your proof of income, employment certification, bank account details and even a birth certificate. When you give the lending company these papers, you are also giving the company all your important personal, and often confidential, information. Thus, anyone who has access to the office also has access to your files. The worst case scenario, your papers could get lost in the sea of personal loans applications.
Online personal loans applications are more secure since all the transactions are done electronically. Also, several online companies require minimal or even no documents. Best of all, the original copies of your documents stays with you.
Confidential Personal Loans Applications
For people with bad credit ratings, one of the worst parts of traditional personal loans applications is the interview. For people who wish to avoid these uncomfortable meetings, the best alternative is to apply for personal loans online. No interviews and, sometimes, no credit checks are required in online personal loans applications.
So if you are in the market for personal loans, check out online lending companies. For sure, you will find the personal loans package to best fit your needs.
Opportunities with Bad Credit
Banks and lending companies often look at your credit score to gauge if you are eligible for a personal loan. Your credit ranking is often equated to how well you manage your bills and finances, and in the same way translates of how well you’ll be able to repay the loan. If you have good credit score, then you’re likely capable of borrowing a bigger sum than if you have a poor rating. But if your score is less than appealing, you can still borrow money through bad credit personal loans.
The Basics of Bad Credit Loans
Bad credit loans are the types of personal loans for people with bad credit. This does not mean that you are poor or can’t handle financial issues. It means that your financial circumstances hindered you from updating your payments, thus resulting to a bad credit score.
Bad credit loans are personal loans that come in two types: secured and unsecured. Secured bad credit loans, like the name implies, require a collateral or asset that will serve as a security net for your lender. Your home, your car and your expensive jewelry can qualify as collateral. Secured loans also allow you to a bigger amount of money with lower interest, but if you missed to pay your loan, the lender can own your collateral for good.
A lot has been said about top loans for people with bad credit. It is true that these loans provide fast and easy solutions for the most challenging financial situations. It is also true that these loans charge higher interests than regular loans availed at the banks and other financial institutions.
However, if your notion about bad credit loans is limited within these two premises, then there’s more that you need to learn about such types of loans.
You Can Avail of a Loan Despite Bad Credit Score
Your credit score will not hinder you from availing bad credit loans. When you have a score below 600, you become a high risk borrower and some banks may hesitate loaning you a huge amount of money. However, you can avail of bad credit loans from several online lending companies despite how low your credit score is.
Bad Credit Loans Can Help You Rebuild Your Credit Score
You might find it ironic to build a bad credit score with a bad credit loan. When you come to think of it, it is a double negative. However, something good can come out when you use bad credit loans the right way. For instance, when you use these loans to pay important bills and other financial obligations, then your credit score greatly improves. When you have an improved credit score, you become eligible to loan higher amounts in the future.
Rates Vary Among Bad Credit Loans Lenders
Don’t be surprised if rate interests of bad credit loans are higher than regular loans. That is because these loans, especially the unsecured ones, don’t require collateral. In exchange, some lenders charge higher interests and depend on your promise to pay on the due date.
If you shop around online lenders, you will find some companies offering more reasonable terms and packages than others. That is why it is recommended to get quotes from different companies first before you settle with a lender offering you suitable rates and terms.
You Don’t Necessarily Need Collateral
Bad credit loans come in two forms: secured loans and unsecured loans. Secured loans require collaterals, your home for example, so that the lender can loan you the money. Secured loans also charge lower interests and offer larger amounts of money to loan.
On the other hand, unsecured loans do not need collateral. Most lending companies will only require a proof income, banking statement and proof of employment. If you are a non-homeowner or does not want to risk your valuables from repossession, then unsecured bad credit loans is for you.
If you ever find yourself in dire need of money for personal and emergency reasons, you have bad credit loans to back you up. Not only are these loans fast and easy to acquire, you can also apply to them and get approved that same day. There are several online lending companies offering bad credit loans nowadays. To strike the best deal, look around first and compare their rates and terms before choosing a package that you believe is well within your capacity to pay.