What are online loans and why should you use them?
While many Americans are used to banking online, some people still have reservations about borrowing online. If you have never taken out an online loan, this guide is for you.
How to borrow money online.
Today, there are many online lenders to choose from. However, not all lenders are created equal. Review the lender’s website for signs of legitimacy. Look for things like if they are a member of the Online Lenders Alliance, have a secured website and customer reviews. You can compare rates from lenders to find a loan that works for your budget. Look for a lender that won’t run a hard inquiry on your credit report before you borrow.
Borrowing money online is easy and convenient. You simply visit the lender’s website and provide some personal information that helps the lender qualify you for funding. Lenders use different criteria to qualify borrowers, but typically you will need to provide:
- Your name
- Contact information
- Social security number
- Bank information
- Employment information
The process often takes just a few minutes. Once you submit your information, it’s qualified online and you can receive an approval decision in minutes. If approved, you can sign your loan agreement and funds may be transferred to your account in as soon as one business day.
What are the benefits of borrowing money online?
Today’s online lenders, like Uprova, are always looking for ways to streamline the borrower experience and make borrowing money as quick and convenient as possible. With an online lender, the entire application process can take less than ten minutes, and everything can be completed online.
With a traditional bank, you can contact them online, but it can take a while before the bank gets back to you. Some online lenders charge lower service fees (if any) than banks because they have less overhead.
Online lenders also tend to fund borrowers with a wide range of credit backgrounds, unlike traditional banks that tend to fund those with good to excellent credit. At Uprova.com, you can also check your rate without impacting your FICO credit score. In addition, online personal loans don’t require collateral to secure approval. You won’t have to risk your property to get the cash you need.
With online loans, you can borrow a few hundred dollars to a few thousand dollars depending on what you need. At Uprova, you can borrow between $300 and $5,000 to spend on just about any expense.
Are there different types of online loans?
There are different types of online loans. Each loan serves a purpose and a specific kind of borrower. Payday loans, also known as cash advances, are short-term loans that typically serve those with zero to low credit. Due to the risk involved, payday loan lenders often charge very high-interest rates. However, they make funding available to those who have emergency expenses and typically don’t have access to other types of credit.
Online tribal installment loans from Uprova allow borrowers to:
- Pay down the principal balance with each payment
- Have a fixed number of payments
- Do not charge hidden fees
- Have transparent loan terms
- Avoid prepayment penalties, so you can pay down debt faster
- Use multiple payment options
Online personal loans are typically available to consumers with good to excellent credit scores, but Uprova provides loans to borrowers across the credit spectrum. Returning customers who qualify are eligible for higher loan amounts and lower APRs with longer terms. This gives our borrowers the ability to boost or rebuild their credit scores and borrow more for less in the future.
Should you borrow money online?
If you need funds fast, online borrowing is a great option. Do your research to find the right lender for you. Always borrow responsibly. Before taking out a loan, consider what amount you can afford to repay on time. Choose an online lender wisely. Uprova is a trusted resource for borrowers across the country. Check your rate today without impacting your FICO credit score.