Online Loans: Quick and Easy Application Process

Published on June 26, 2020 by Daniel Azzoli

open macbook looking at online loans

As online loans become more popular than ever before, CreditFresh shows you why they can be a quick and easy way to apply for funds.

It’s 2020. By now, if you can’t find something on the Internet, you may find yourself wondering if it is worth finding at all. The World Wide Web’s catalog of things is expanding every day, and it may help people around the globe learn, stay connected, and shop.

The Internet has also changed the way people borrow. If you’re a regular visitor of the CreditFresh Blog, you may have read about online loans before. But if not, welcome! Here’s a chance to learn more about what makes online loans quick and easy to apply for.

Why Do People Get Quick Cash Online?

The reason why you choose an online loan or online line of credit may be entirely personal. But there’s a good chance that it may be because of at least one of these five features of quick easy loans online.

1. Their Speed is Designed for Emergencies

It’s hard to anticipate all of life’s curveballs. Some may come with an advance warning system that tips you off, so you can prep your savings before they arrive.

But sure enough, others won’t give you any warning whatsoever before they crash into your life. These curveballs may turn up out of the blue as expenses or repairs that need to be looked after right away.

If you don’t have any savings to fall back on, you may need to borrow money quickly to cover your unexpected emergency.

Quick online loans are designed to work with time-sensitive emergencies. Financial institutions usually offer a web-based service that makes it easy to start an application and send it off at any time, 24 hours a day, seven days a week. As long as you have your financial information at hand, you may complete this application within minutes.

smiling woman in black hat sitting at a table next to open laptop on balcony next to flowers

2. They’re More Convenient

In a perfect world, your life would have a big pause button, and you could press it as soon as an unexpected emergency happens. With a touch of this button, all your other responsibilities would come to a screeching halt, freeing up your time and energy to give your emergency 100% of your attention.

Unfortunately, reality doesn’t work like a DVD player. You may not be able to halt your other responsibilities once you’re hit with an emergency.

Busy people have a lot of responsibilities to juggle at the same time. Finding time in your full schedule to apply in-person during business hours may be hard without dropping something important.

Applying for quick easy loans online simplifies your borrowing experience by throwing it on the web. An online financial institution doesn’t expect you to come to a storefront location to speak with an advisor during specific hours.

That time-intensive process is a thing of the past. Now, you may apply 24/7 on their website from anywhere you get the Internet.

When and where that happens is up to you. Late at night after putting the kids to bed works just as well as during your lunch break at work.

3. They Operate in Less Intimidating Spaces

It takes courage to ask for help when you need it, especially when it comes to matters of the wallet.

The thought of opening the doors of your nearest financial institution, walking up to a teller, and applying for a line of credit or loan may be tough to stomach for some people.

Applying for quick easy loans online from your computer — where there’s no need to interact face-to-face with a person — can make asking for help a little easier.

4. They Offer Easy, Round the Clock Monitoring

Your finances aren’t something you should set and forget. For your finances to flourish, you need to keep a constant eye on what’s going on with your money — and that includes your personal loans and personal line of credit loans.

Getting quick loans online makes it easier than ever to keep a close watch on your loan account. In some cases, you may be able to check in on your outstanding balance, payment schedule, and loan history from your digital profile.

Some financial institutions even offer apps, so you can take your loan anywhere your day takes you. With your account information in your back pocket, you’ll never forget a due date again.

5. They May Have More a Flexible Eligibility Criteria

Applying for money with a bad credit score may not always be easy. Some financial institutions may require their applicants to have a prime credit score of 620 and above.[1]

However, applying for quick cash online may be easier for people with bad credit because some online financial institutions have lower credit score requirements. If they do, they may ask to see other financial information to make their lending decisions, such as your employment history, pay schedule, and income.[2]

How to Compare Easy Online Loans

Applying for quick cash online may make sense when you face an unexpected emergency, even if you have a less-than-perfect credit score. But before you commit to anything, compare these important factors against the perks of using quick easy loans online.

people sitting around wooden desk next to open laptops in office setting

Loan Charges

Before you apply for a loan, don’t turn a blind eye to the loan charges such as interest and/or fees, that are involved in the loan. These factors should give you more insight into the true cost of borrowing.

Armed with this knowledge, you’ll be in a better spot to decide if the online loan is something you can afford. If it isn’t, browse around. Compare them to other online loans, as well as the rates for a personal line of credit to find something that’s more affordable.

Up-front Payments

While there are many types of legitimate fees that come with quick easy loans online, there are some that may not belong in your loan agreement.

If you aren’t sure how to differentiate legit fees from not, the timing of these payments may tip you off. Reasonable fees may be taken out of your loan proceeds, or they may be an added cost to your loan payments, just like interest.

Not-so-reasonable fees are payable way before that. Up-front or advance fees are due before you ever get cash in your hands — a hard task considering you need to borrow money online.

Advance payments are a red flag. Watch out for financial institutions that demand you make an up-front payment before you receive your funds as they may be a scam.[3]

Terms

Before accepting an online line of credit or loan, read over your terms carefully. Your terms give you the scoop on your repayment schedule.

For personal loans, your terms may tell you details like when your payments are due and how long it will take you to pay back the very last cent.

As for an online line of credit, they may tell you the date on which you might expect a periodic statement outlining your minimum payment and payment due date.

Eligibility and Creditworthiness

Financial institutions expect you to meet specific criteria before they’re willing to approve your application for funds. These criteria help to ensure your creditworthiness, or the ability to repay your loan on time.

Your credit history makes up the bedrock of your creditworthiness, and it’s a big consideration in whether you may handle a loan responsibly.[4]

While some financial institutions may have strict policies requiring a prime credit score, others may have more flexible credit requirements.

Shop around; you may be able to find a financial institution which offers a personal loan or personal line of credit for people with bad credit.

These financial institutions may supplement your credit check with alternative financial info, such as your employment history and income to see if you can afford to repay your funds.

Spending Limits

Every personal loan and line of credit has a purpose. Some help you purchase big investments, like a new car, home, or education. Others are for smaller yet no less important things.

As for quick loans online, they’re designed to help you in an unexpected emergency.

Say you cut yourself while cooking, and it’s bad enough you need to see a doctor. Between hospital fees, stitches, and the salve they send you home with, you may rack up a big bill. If you can’t stretch your savings to cover all of it, you consider paying for the rest by applying for an online loan.

man in blue-checkered shirt writing in notebook with left hand on table next to open laptop

Still not sure when to utilize short term loans? Don’t worry — your emergency may look nothing like the above example, and an online loan may still be a solution. Maybe your car breaks down, or you need to replace your refrigerator. If you can’t cover a surprise expense on your own, easy online loans may help.

If a financial institution suggests quick loans online for anything but an emergency, stay clear. You want to make sure that you are developing responsible borrowing habits.

Easy Online Loans Simplify Your Borrowing Experience

Now that you have a greater understanding of what makes an online loan tick, you’re in a better position to decide if it’s the right solution for your emergency.

Keep what you learned here at the top of your mind the next time you need help. Compare and contrast your options to find the best possible online line of credit or loan for your finances.

If your research includes learning about online line of credit loans, contact us to learn more.

Disclaimer: This article provides general information only and does not constitute financial, legal or other professional advice. For full details, see CreditFresh’s Terms of Use. 


[1] https://www.investopedia.com/terms/p/prime.asp

[2] https://www.fool.com/the-ascent/personal-loans/articles/7-factors-lenders-look-considering-your-loan-application/

[3] https://www.fraud.org/advance_fee_loans

[4] https://www.thebalance.com/what-is-creditworthiness-and-why-is-it-important-4159826