When you’re in need of some extra cash to cover an unexpected expense, you don’t have to speak with a teller face-to-face about getting a personal loan. With today’s high-speed Internet, you can skip that step and borrow from your phone or computer.
Online loans are among the many items and services now available to order on the Internet today.
But why would you make the switch from traditional borrowing? Here are three of the biggest advantages of borrowing online.
1. Selection
Online borrowing has a leg up on traditional loans because of the selection. You can see it in action by typing something like this into your favorite search engine: online loans near me. In the blink of your eye, you’ll have millions of results delivered to your screen.
This kind of variety works in your financial favor. When you have a greater number of options to pick from, you have the chance to cherry-pick the best possible one available to you today.
After doing some research, you’ll find there are many different types of online loans available today.
- Cash advances, due back by your next payday
- Installment loans, with monthly payments spread out over time
- Lines of credit, which work like credit cards
Compare this to walking into your local financial institution. No single brick-and-mortar location can compete with the Internet’s variety. If you don’t like their selection or rates, you have to travel to the next bank to see if they have better options.
2. Convenience
This next advantage has already been hinted at in the section above. What could be more convenient than comparing options from the comfort of your couch back at home?
When you borrow online, you don’t have to take time out of your day to travel to a branch or wait to speak with someone in person. Instead, you can visit lenders’ websites whenever it suits you, even if that’s in the middle of the night or on a federal holiday.
Online direct lenders keep their applications open 24 hours a day, seven days a week, unlike banks, which are open between 9–5 and are closed during holidays.
Some online direct lenders may call you to verify your information and go over your contract if you’re approved. Everything else is digital. You can receive and pay off your funds through direct deposit and manage your account online.
3. Speed
How long does it take to get a loan the old-fashioned way? While the exact timeline depends on individual financial institutions, most banks take their sweet time deciding whether they’ll approve your request.
After you take into account the prerequisite meeting with a financial advisor, an in-person application can take hours to finish. Then you might have to wait a few weeks to find out if you’ve been approved.
Digital approval doesn’t take quite as long. Online direct lenders collect and review your application electronically. Powerful algorithms speed through this underwriting step, so you might learn if you qualify in minutes.
Accelerating this step of the borrowing process can impact the rest of your experience. If you’re approved, some online lenders provide same day loans, so you don’t have to wait weeks to get help.
Bottom Line:
Old-fashioned borrowing won’t disappear any time soon, so you can still ask for help inperson. But if you’re busy and need help urgently, an online loan offers a more convenient way to get the cash you need.
