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Make Your Emergency Disappear with Online Loans
Unexpected expenses always seem to come up when you are the least prepared to handle them. When no one around you can help you out, it can seem like the world is coming to an end. However, the situation does not have to be as dire as this. Online loans can provide you with the money you need to make you feel secure again.
Applying for Traditional Loans
Applying for a loan with a traditional lender is not possible for everyone. These lenders all want to perform credit checks, so that they can verify your credit scores. This is something that someone with challenged credit does not want to occur because a credit check counts as a “hard check,” and it affects your credit scores negatively. Online lenders, on the other hand, will do a “soft check.” A soft check does not appear on your credit reports, so it will not cause your credit scores to go down.
Traditional lenders are also interested in your payment history. If your credit reports have several late payments, this may give lenders an excuse to deny your application for a loan. It’s also the reason that you will be considered to be a high risk, and they will charge you a higher interest rate. This will not necessarily be the case with an online lender.
Applying for an Online Loan
You are welcome to apply for online loans if you don’t believe that a traditional lender will work for you. You will only need to offer the lender a limited amount of personal information. For example, you will need to be 18 years of age in most states. You will also need to be earning income every month. You must have a valid checking account with a bank, and you also need to have an email address.
Online lenders will charge you an interest rate like the traditional lenders do, but the online lenders will not necessarily require you to accept an online loan with an exorbitantly high interest rate. Traditional lenders charge borrowers with troubled credit histories the highest interest rates because it is riskier to lend to someone who has a lower credit score. This doesn’t have to be the case when you apply for an online loan because there are several options for you. If you don’t like the interest rate that one lender is charging, you can go to another lender who may give you a better rate.
After you have been approved for an online loan, you and your lender will determine how much you are qualified to borrow. People can borrow as much as $5,000, but you must keep in mind that these are short-term loans, and they need to be repaid in the shortest amount of time possible. If you cannot repay the loan in two or four weeks, you are borrowing too much money.
Reasons to Borrow from an Online Lender
People need emergency funds for all kinds of reasons. Fortunately, you can use your online loans for any purpose. This is another reason that online loans are more beneficial to you than traditional loans because traditional lenders require that you inform them why you need the money. With this being the case, you may not be approved if you need the money for a non-emergent purpose.
Online loans can be used for purposes other than emergencies. If you need money for a down payment on a car, an online loan is an option for you. You may have overdue bills that aren’t necessarily emergencies, but you can pay those in full with your online loan.
Relief in One Day
The fact that you may be dealing with an emergency situation means that you don’t have a lot of time to wait for a traditional lender to approve you for a loan. After you have submitted your application, it only takes a couple of minutes to receive your answer. A traditional lender, on the other hand, would need to review your credit reports and examine your documentation before he or she contacts you. This can take as long as two weeks. After you receive your answer in minutes from an online lender, you may receive your money the very next business day.