You can do everything online without having to be physically present.
But the question of whether or not online borrowing is safe should be answered once and for all.
Because you have every right to demand the legitimacy of a new trend before you can decide if it’s for you or not.
We are therefore going to strip this subject apart and expose everything you need to know to help you make rational decisions; that you won’t regret later.
First, let’s look at what makes online borrowing different from traditional lending, shall we?
What Makes Online Borrowing Different?
Next time your kid asks you the difference between traditional borrowing and online borrowing, tell him or her it’s the ease of approval; meaning the process of approval is shorter in online lending and longer in a traditional loan.
He is just a kid, and may not require you to throw a bunch of information to him, but what if you want to make someone understand the difference between the two succinctly?
Of course, you can do better. So, let’s discuss some of the differences between traditional borrowing and online borrowing.
Easier Approval: Most traditional banks have become skittish these days. You have better chances of securing a loan if you have a good credit score. But what if you’re still in the process of building your credit score or you have been trapped in a loan shark lately? Online lenders can approve your loan request even when you have a low credit score because they have other mechanisms to evaluate you for the loan.
Quick Approval: You can know almost immediately whether or not you have been approved when you borrow online. Unlike in online borrowing where you’ll know everything – from whether you have been accepted to the interest rates you’ll incur, traditional lending will take some time (in some cases up to six months) before you can know whether or not you were approved.
Unsecured Loans: Unlike traditional borrowing where you have to pledge collateral before you can get approved, online borrowing doesn’t require you to pledge any of your assets that the lenders will be after in case you default in payment. In other words, nobody will come after your real estate apartments if you default in paying back your loan.
Better Rates: It doesn’t cost you anything to shop around and compare rates. You’ll settle on the best loan if you shop around and compare different rates every online lending platform has to offer. Sure, interest rates will indeed differ depending on the lending institution, but you can always get better rates. Most online lenders aren’t under some stringent regulations, so you should expect you will pay low-interest rates.
How to Borrow Online
The process of borrowing online is almost similar to the traditional one; the difference is that online borrowing is faster and doesn’t require you to be physically present – everything is done online. You can check the detailed explanation about how to apply for loans on myinstantoffer.
So, you visit any online borrowing site, fill the forms; which may need your details, social security number, and any other information required.
Some online lenders may require additional information like your monthly income, your job description, so be ready to provide information regarding the same.
After filling all the details needed, you’ll know instantly whether or not you have been approved (chances that you won’t get approved are minimal unless you didn’t provide every information needed.)
Why You Should Never Opt for Payday Loans
When you search online for online lenders, you’ll get plenty of search results, and you’ll need to be smart when choosing which online loans you are applying.
In most cases, the results that will show up are payday loans that will require you to pay off your loan within one month.
The reason why these loans are not suitable for you is that they have high-interest rates and will always leave you in loan sharks; jeopardizing most of your important plans.
Not to leave you in the dark, here’s how you can identify such loans:
Characteristics Of Payday Loans
Short Terms: Payday loans require you to pay back your loan within a month. Because you are not prepared for this, make sure you look for loans that you’ll pay over several years.
High-Interest Rates: Most payday loans have high interest rates. Honestly, why should you pay higher interest rates when there are online lenders who can offer you low-interest rates?
No Credit Check: Most of these payday loans don’t check your credit score, which is dangerous. The fact that you need a loan, especially on online lending sites doesn’t mean the lender doesn’t have to check your credit score.
Upfront Payments: The truth is that no lender should ask you for upfront payment because those fees should come out from the loan.
Over To You
By now, you should have an answer to the question: are online loan sites safe?
You have all the information you need to decide whether or not you will opt for online borrowing.