What are the Pros and Cons of Online Personal Loan Lenders?
Personal loans are a valuable and convenient financial tool. They can be used for just about any expense, unlike other loans like mortgages or car loans. How much you can borrow through a personal loan varies depending on the lender, your financial background, and your credit score – but if you qualify, you can use a personal loan to cover major expenses you can’t afford up front.
You used to have to take out a personal loan in person through your bank or credit union, but today, personal loans are conveniently available online. Learn the pros and cons of online personal loan lenders and if they’re right for you.
Pros and Cons of Online Personal Loan Lenders
1. They make it easy to compare rates.
The best way to secure a competitive rate on a loan is to shop around and compare lenders. Online personal loan lenders make it easier for consumers to compare rates and ensure they are getting the best rate for the loan amount they need. You can check your rate online for free on most personal loan lender websites by providing basic information through a web form.
2. The consumer wins with more options.
Another pro of online personal loan lenders is that the consumer gains access to more options. There are many online personal loan lenders to compare and ones that specialize in different areas. For example, if you have poor credit, you’ll want to look for bad credit personal loan lenders or no credit check personal loans. For example, at Uprova we offer payday loan alternatives, so consumers with lower credit scores have access to fair funding.
3. It’s faster to apply and receive funding.
You can apply within minutes online for a personal loan. Many lenders will give you an approval decision within minutes of applying, which gives you time to apply with another lender or re-strategize how to get funding. If approved, you can typically receive funding in as soon as one business day. That makes online personal loans ideal for emergency or unexpected expenses.
4. There are online lending cons.
One con of online personal loan lenders is that there isn’t on-site customer support. You can’t go to a brick and mortar location and speak with someone or get cash in-hand. However, many online personal loan lenders have support phone numbers and/or email addresses where you can communicate with someone. You must have a bank account where the lender can automatically transfer funds to your account if approved for funding and where the lender can withdraw funds on your due date. If you don’t have access to the internet, you can’t borrow online.
Summary
There are pros and cons of online personal loan lenders. If you don’t have access to the internet or aren’t used to searching online, you might find it difficult to use an online personal loan lender. Otherwise, there are many benefits to using an online lender. You can apply from anywhere on any device. You can compare multiple lenders to secure the best rate for the amount you want to borrow. You can apply in less time and receive funding faster online.
If you need an online personal loan, Uprova can help with loans up to $5,000. If approved, you can receive funds in as soon as one business day to cover just about any expense.