Convenience Is The Number One Variable Driving Online Lending Growth Into 2015

Today consumers are looking to the Internet to get loans that are not available from a traditional lender, such as a bank or credit union. Many consumers may not pass a credit check or have a problem using a bank because of various lending practices. This means that loans provided by lenders found on the Internet are an alternative that is available to all types of consumers.

The most common type of loan that is available on the Internet is called a payday loan. This is a type of short-term loan that is often used by individuals that have bad credit. A payday loan often has rates that are much higher than loans from a bank or credit union. However, there are some advantages to using a payday loan if no other options are available.

One major advantage to obtaining an Internet loan is that the lender typically offers quick approval. You need to provide all necessary information on the application. This includes your banking information and an employer’s pay stud or other proof of employment. Lenders that offer loans on the Internet all require a consumer or applicant to be employed. Applicants also need to be 18 years of age or older. Once all the requirements are met, the application is approved. Money is typically transferred on the same day. You may need to wait an extra day or two if you apply for a loan on a weekend.

Another advantage of using an online lender to obtain a loan is that no credit check is necessary. If you are concerned that your credit score is low and have been denied by a traditional lender, then you have the option of getting an Internet loan. This is an easy way for you to obtain cash that is needed to make a payment or to use for virtually any purpose.

The application process is also easy to complete. There is typically one page that you need to complete that includes your personal information and banking information. You can typically complete each step of the application in a few short minutes. Submitting all types of documentation is not necessary to get approval for the loan. This can save you valuable time by not needing to obtain various documentation.

Anyone that has a constant stream of income is generally able to apply for an online loan, and some lenders will weigh your income history as the number one varialble, even more important than you credit history or credit score when qualifying you for a new loan. However, you should make sure and read all of the information provided about the loan,. This includes the interest rate, when your payments are due, and any other valuable information. Search online to find various lenders to use if a need arises to obtain a short-term loan on the Internet.

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  • FAQ for borrowers searching for personal loans in Texas

    How do I decide if a personal loan is right for me?

    A personal loan is a significant commitment. Weigh the benefits to decide whether paying interest for the privilege of borrowing money in advance is crucial. Understanding your responsibilities in addition to the reasons for taking out the loan is critical to obligating your future income to make the payments.

    How does a personal loan affect my credit score?

    Hard inquiries performed by creditors are going to knock a few points off your credit score. You can increase your credit score by making timely payments and never missing a single one. Paying late can affect your credit score and block access to future loans. 

    Do personal loans need collateral?

    Personal loans are generally approved based on creditworthiness. Typically designated as “good faith” loans, the lender won’t need collateral to guarantee that you’ll repay what you’ve borrowed. Although riskier for loan issuers, unsecured loans can cripple your ability to access further credit if you fail to repay to completion. 

    Can I change my payment due date?

    Your payment due date will be set when your short-term loan is approved and will be the same date during the month. You won’t be able to change this pre-determined date. 

    What are the different types of short-term financing?

    Short-term loans, trade credit, overdrafts and credit cards are common examples of short-term financing. Typically, the repayment period is as short as a few weeks up to five years in length. Depending on the type of financing (personal loan, unsecured loan, installment loan) and lenders terms, you will generally find many loans are between six to thirty-six months for repayment.