Times have changed; now, almost everything can be done online including banking, credit card, and loan applications. In the past, consumers had few choices when it came to loans. They could go to a bank or to a building society. Today, we have something called online Instant guarantor loans helping people like you – with a poor or no credit history – manage their money and apply for loans for personal investment.
Here we present five advantages to choosing online guarantor loans instead of traditional methods of borrowing. Let us help guide you through the range of choice, help you decide which is right for you, and save money.
A range of choice
There are three broad choices of instant online loans.
- The first is the online guarantor loan. With these types of loan, you are required to provide the name and details of a third party who will become financially responsible for any loan repayment that you are unable to meet. Guarantors are usually parents or other financially stable family members or friends
- Peer to peer lending is a relatively new approach to older methods of lending. Instead of borrowing from a business or investor, you borrow from a person. Instead of friends or family, you borrow from strangers. The terms such as repayment period and interest are then down to the lender and the borrower to decide
- Income contingent loans are not concerned with your credit history. Instead, the lender looks only at your ability to pay now – your income and outgoings with little concern about past poor credit. This is a good choice for people who spent a prolonged period unemployed but recently got back into work and once again have a reliable income
Speed and convenience
Instant online guarantor loans are approved much faster and you do not need to visit a bank to apply for one. All you need is an electronic device and an internet connection. Fill out all the details on the online form, leaving nothing out or the lender may request extra information. Everything happens online including loan deposit and withdrawal into your bank account, and administration of the repayments.
The lender will require less information of you than your bank might require and because they specialise (generally) only in loans, there is a much more streamlined process from application to approval. They are much less selective than banks, meaning a higher approval rate and less scrutiny of your reason for needing the loan. They may ask the purpose, but they won’t necessarily look as deeply into it as your ability to pay is more important. You could easily receive a loan within 15 minutes of completing the required information.
Lower interest rates
Online instant loan providers rarely have the overheads of banks and other traditional money lenders with brick and mortar premises. Lower overheads and lower investment risks means the cost of running an online loan company is lower a retail bank, therefore the cost to the customer of taking out a loan product are also cheaper.
Secondly, the rate will be fixed on larger and long-term loans. Applicants do not need to worry about variable interest rates which is a major burden if the customer takes out the loan to consolidate other loans and credit products.
Online loans represent genuine cost savings. Even if you do not have a bad credit score or no credit history, this alone is a good reason why you should consider this type of loan before any other.
Another major benefit, and one that draws people with a poor or no credit history to this type of loan, is that they are great for repairing your bad credit report. People with poor credit struggle for approval for any type of borrowing. This can be problematic if personal financial difficulties are in the past and the applicant is able to clear whatever debts tey acquired.
Any good credit report – a repaid loan, cleared credit card balances, no defaults on loans and credit payments, will repair your credit score. However, there is a vicious circle as people with a bad credit score find these products are hard to obtain in the first place.
With instant online loans, you have a superb springboard for improving your chances of getting credit in the future.
Flexibility for personalized loans
Online loan providers make it as easy for you as possible in determining how much you could borrow and pay back each month, and when. That’s not something traditional banks do until the process is at an advanced stage. Juggling the figures can take time. With an online calculator, you can plan your finances around the loan, see what’s affordable, and adjust the repayment terms for your personal preferences. That way, you know exactly what you’re going to pay back and when.
Put in the loan amount, your income, the number of months over which you wish to repay and press a button. The site will make the calculations for you before you decide to go ahead and will adjust in an instant. This is not just flexible; it is also transparent.
Have you read?
# Best CEOs In The World 2019: Most Influential Chief Executives.
# World’s Best Countries To Invest In Or Do Business For 2019.
# Countries With The Best Quality of Life, 2019.
# Most Startup Friendly Countries In The World.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.
Thank you for supporting our journalism. Subscribe here.
For media queries, please contact: email@example.com