The rise of the internet means many aspects of our daily lives are far easier than they once were. Whether it’s catching up with friends, applying for jobs, booking a holiday or treating ourselves to new clothes, we can do it all online at the click of a button.
Securing a loan is no different. While once you would have had to pay a visit to a lender if you wanted to borrow money, most have now taken the majority of their services online, providing an easy, convenient alternative to visiting high street banks or building societies.
This simple guide will lead you through how to get a quick loan online, to spend on anything from a dream wedding to a more reliable car, a house extension to a new sofa.
Advantages of applying for a loan online
More people are applying for loans online than ever before, and with good reason. Filling in an application form at home or on the go delivers some distinct advantages, including the fact that you can save time doing it at home and that you can consider your answers more carefully than you might face to face.
Waiting for a loan decision can be frustrating, particularly if you need the cash quickly. Applying online dramatically cuts down traditional waiting times. Online lenders have access to specialist software that speeds up application assessment, so they can deliver a decision faster. This speediness can also translate to the time it takes to receive those funds in your bank account if you are approved for the loan.
Broad choice of products
As always, the internet provides unrivalled consumer choice. This means you can take your time and search for the loan that best suits you and your personal circumstances. This way, you’re more likely to find a loan product with a manageable interest rate and repayment plan.
Ease and convenience
Scouring the high street for a loan can be time-consuming and confusing. You may need to make multiple appointments to talk to lenders face-to-face. And because you’re only hearing about one lender’s products at a time, it can make comparison difficult when it comes to choosing the right product for your needs. It’s easier to get a comprehensive overview of the full loans market online, making it much more straight-forward to find your ideal loan.
While it can be more convenient to apply online, it’s important to remember there may be some disadvantages to using the internet to secure credit too. Loans can be complex, and it may be more difficult to understand what’s on offer when there’s nobody to help explain any confusing financial jargon in person. If you’re looking into how to apply for a home loan online, or how to borrow money online for any other purpose, think carefully about whether online borrowing is right for you.
How to get a loan online
Applying for a loan online is fast, efficient and better than ever. Here’s how to go about getting the best deal.
1) Check your credit score
To begin with, take a look at your credit score for an overview of how potential lenders will perceive you. Double-check there are no errors on the credit score that could hamper your chances of success and try to work out if you’re likely to be approved. Remember, multiple rejected applications can lead to a negative on your credit report.
2) Choose a loan
Next, decide on the loan you’d like to secure. Make sure you understand the terms of the loan – how much will it cost you to borrow a certain amount, from a specified lender, over any given period of time? Our loan calculator can give you an idea of how much you might be able to afford to borrow and the time period you’d like to pay it back over.
3) Meet the eligibility requirements
Ensure that you meet all of the eligibility requirements before you apply. For example, are you old enough, and do you earn enough money? Applying for loans that you’re not eligible for could damage your credit score because each fresh application is logged digitally.
4) Start the application
Now that you’re ready to start the application itself, it’s important to have everything ready. As well as your personal details and bank details, make a note of your previous addresses and places and dates of employment - and make sure you have this key information to hand to make the application process as smooth as possible.
5) Complete the lender’s application form
Fill in the lender’s online application form – doing this will prompt the lender to run a credit check on you. Once this is done, the lender will check your credit score and decide whether you’re a responsible person to lend to. You must then wait for the lender’s decision on whether they’ll lend or not, and what interest rate they can offer you.