Online loans- a viable alternative
As technology advances ever forward so do online loans in the UK, it seems every aspect of our lives is getting a re-haul to make them faster, more convenient, and with more choice and personalisation.
Borrowing money online is no exception. It used to be that the only way to get a loan was to visit your bank manager, but now there are online loans available as a viable alternative and it takes less than a few minutes to apply for a £100 loan for example.
These fast online loans are dealt with much more efficiently than traditional loans and can be a speedy way to give your finances a short term boost, most people get fast loan money with no guarantor if they have a good credit history.
What are the advantages of online loans?
When compared to traditional loans or the use of credit cards, online loans can offer many benefits and advantages.
They offer a way for people in need of monetary assistance to get their hands on the cash that they need, when they need it. The time from initial application to actual looking at the money in your bank account is actually so much faster with an online loan that it is very often surprising to some people. You could be spending your money within 24 hours in some cases with a short term loan from a UK lender.
You also have the option of only borrowing what you need with a fast loan. Whereas bank loans are usually for much larger sums and designed for expensive purchases and they won’t be same day loans, online loans can be taken out for as little as £50 pounds as a payday loan, and as much as a £1000 loan.
Better still, your success at acquiring a loan is not based on what you want to spend the money on. Most lenders won’t even ask that from you. This gives you the freedom to do what you like with the money, with no restrictions or conditions placed upon you. Convenience is also a great benefit of online loans that can result in same day payouts there’s even quick loan options for people with bad credit, but not as fast as those with an excellent history. The simplified application processes used by most online loan lenders can be done completely from your computer.
The application process is set up like this because online loan lenders know that a lot of people need these loans in a hurry, usually for emergency situations and so a streamlined way of applying is in everyone’s best interests.
The application process isn’t the only thing that is fast. Once your application has been filled in, if you’re trying to borrow money in the UK, the lenders will rapidly assess your eligibility and get back to you with their answer or offer. If you are successful, the money will be transferred into your account in equally fast fashion.
Online loans are also more accessible to a wider range of people than conventional loans.
If you have a poor credit score or bad credit history, it can very difficult to get financial aid from a bank or other mainstream institution as they have very strict checks that they must go through before they can consider your application, short term lenders do not have the same criteria, you can get a payday loan online quite easily with the right credit history.
Online loans are different in that respect. They do not use the same factors to make their decisions and instead are more concerned with things like you’re current work situation and income.That means you can get a loan with bad credit and no guarantor potentially in some cases. You have a much better chance of being offered a loan from an online loan lender, because they offer bad credit loans as a specialist loan type.
Repayment terms and plans for online loans are usually set out in front of you to go over before you decide to accept or not, for example say you try to get a £200 loan, they might offer the full amount or less, they may offer high or low interest so carefully check the agreement.
There are many different types of plans such as a one off payment for smaller loans, or larger loans to be repaid in instalments over a set period of time. This could be a short period of a few months, or even as long as a twelve month loan. Online loans can offer flexible repayments to suit your situation and needs.
Can I get an online loan with a bad credit score?
When you ask to borrow money from a building society or bank, or even apply for a credit card, the company you are trying to borrow off will be required to do a comprehensive credit check on you.
They will receive a credit file from a credit reference agency (RCA) that will have comprised all of your credit history. The file will include personal information. Your name, address, date of birth, and other basic information will be included in the file. If any of this information is different to what is in your application, there is a chance you will be refused the loan. This is why it is important to check your credit file from time to time and keep it up to date and probably before you take a cash loan out today wouldn’t hurt. Any time you are late with a payment, be it a loan payment, subscription of some kind, or getting behind on the bills, an RCA will make a note of that in your credit file. Having a long history of missed payments can seriously hurt your chances of getting credit in the future.
How much debt you currently owe is also recorded in your credit file.
Obviously too much outstanding debt, especially escalating debt, is not going to look too favourable when banks look at your file. If you have ever had a property repossessed it will undoubtedly affect your credit score negatively. Likewise if you have bought a car on finance and had that taken away because you didn’t live up to your side of the agreement and pay what was due. Sometimes you can still get online loans with bad credit in this situation.
Any county court judgements that come from legal action against you will be a part of your credit file, as will any individual voluntary agreements (IVAs).
IVAs are usually a last chance way for people to avoid bankruptcy but they still heavily damage your credit score and ability to get a loan from a traditional lender, sometimes you can still borrow money with bad credit through a short term loan lender.
All of these factors play a role in whether or not a bank or building society will agree to a loan.
Online loan lenders on the other hand don’t rely on RCA credit checks in the same way and this makes it possible for people with a bad credit score to acquire a loan.
Instead of trawling over your past history, online loan lenders of quick loans are more likely to pay attention to how much you are currently earning and being currently employed when making their decisions on your application.
This is good news for people with a bad credit score as they still have a chance at borrowing money urgently if they need it.To sum it all up, online loans are a good choice for people in need of cash in a hurry for things like unexpected house repairs, or an unusually large electric bill.
They are also a chance for people with bad credit to get financial assistance and start to build up their credit score. Before deciding to get a fast payday loan, please make sure that you can comfortably afford to make the repayments. To make this easier, you should shop around for the best initial loan deal you can get. While this may be time consuming, it will pay off by you getting the best rates.
If time is not a luxury you can afford, getting help from a quick online loan broker to do the applying for you might be a good idea. They will usually have a list of the best brokers already on file and will find the best one for you.
You are under no obligation to accept any offers that the brokers arrange for you, you can simply say yes or no to a UK online loan.
Online Loans FAQ
What is the best online loan?
Getting the best online loan largely relies on your effort to check out as many brokers and direct lenders as possible. If your in a hurry it would be worth submitting your details to both as you are likely to then get the fastest online loan with the best interest rate and good repayment terms.
How can I get a quick personal loan online?
One way to get a quick personal quick loan online is to send your details to a broker who will then put your information in front of a panel of lenders for approval. It’s pretty likely that you’ll be able to get a quick personal loan online if you have sensible credit history and meet the criteria of payday loan lenders. The most important aspects to approval are a job, money coming in, UK residence, a valid bank account in the UK, and a mobile phone.
How do you get an online loan with bad credit?
You can normally find lenders willing to accept an online loan with bad credit application. They specialise in helping those that are working and might not have the best credit history from the past. They will look at your recent financial situation and make a decision that they believe will be good for you and your financial position as of now.
Where to apply for personal loans online quickly?
You can apply for personal loans online with brokers and direct lenders. The more companies that you engage, the more you increase the likelihood of finding the lowest possible interest rate. You can quite often get an online loan same day too. When borrowing money quickly, it’s always important to consider the interest rate as you’ll have to make the repayments down the line and you do not want to create financial difficulty for yourself going forward.