Put simply, with an online loan, the borrowing process is done primarily online. This includes the application, approval, and funding. This stands in contrast to most loans that you would apply for through a brick-and-mortar location.
This doesn’t necessarily mean that financial institutions with storefront locations don’t offer loans online. They may very well offer these types of loans in addition to the borrowing options they offer through in-person customer interactions. Regardless, whether it’s through an online lender or another type of financial institution, online loans are offered online.
If you’re in need of an online loan, CreditFresh may be able to help! You can submit a request for an online loan in the form of a line of credit. If approved, you can get access to a credit limit from $500 to $5,0001. The process of submitting a request is fast and simple! You may even be able to get your funds as soon as the same business day, if approved3. Follow the straightforward steps below to submit a request.
Submitting a request only takes a few minutes.
Simply request a credit limit, securely verify your details, annd review and sign your agreement.
If approved, you can request a draw online and money may be deposited into your bank account the same business day3.
Now that we’ve defined online loans, let’s go over why you might actually opt for one in the first place. Here are some potential benefits you might experience if you decide to borrow money online.
Whenever you’re in the market for a loan, it’s always a good idea to look around for the option that would suit you best. With online loans, you may have an easier time comparing different options up against one another. Just pull up the websites of different financial institutions and compare the options they have available.
One of the biggest benefits of online loans is the convenience of the borrowing process from the start. There’ll be no need to find the time to travel to a storefront, wait in line to be seen, and then spend the time talking to a representative in person. Instead, you’ll be able to go through the majority of the process from the comfort of your own home (or anywhere you have internet access). With some institutions, you can even start the application process 24/7, meaning you can apply whenever it suits you best.
When you’re borrowing money online, a lot of the process may be automated. Because of this, things can progress on a faster timeline. With certain financial institutions, you may be able to hear back on whether you qualify or not in minutes, and you could get your money in a business day or two -sometimes even less. This will vary between institutions.
Additionally, you won’t need to twiddle your thumbs waiting for a check to come in the mail. Instead, the money you borrow online will typically be deposited directly into your bank account.
If your credit score isn’t the greatest, you may have a harder time getting approved for certain types of loans. Unfortunately, this may be one of the effects of bad credit.
However, if you do have less-than-perfect credit, you might have an easier time researching for a loan online that’s available to people with subprime credit scores. While your credit history may still be a factor, you may find a financial institution that may weigh other factors more heavily, like your income and employment status. The necessary requirements to be approved for unsecured online loans will vary from one financial institution to the next.
Like we mentioned earlier, there are plenty of different types of online loans out there, all with their own specific qualities and uses. We’re going to go over a few of the most common types.
One of the main distinctions between different types of online loans is whether they’re unsecured or secured. With an unsecured loan, you won’t need to provide collateral to get approved. Financial institutions are typically taking a bigger risk with these loans, so they may have relatively high interest rates and/or fees.
Secured loans differ in that they will require you to put up an asset or assets as collateral. This means you’ll need to give the financial institution something of value in the case that you default on your loan.
A common example of this type of loan would be a mortgage. In this case, the asset you’re putting up as collateral is the home you’re buying.
With online installment loans, you’ll be given a lump sum if approved, and you will be required to make scheduled payments over the course of a pre-determined period of time. Your payments will typically include your principal balance along with interest and/or fees.
If approved for an online line of credit, you’ll be given a pre-determined credit limit that you can use when you need it. Your payments will reflect the amount of credit you use along with any interest and/or fees, not the total limit of your line of credit.
A line of credit is a revolving form of credit, meaning that as you pay down your balance, you can continue to draw money as needed. You can only do this if you have available credit and your account is in good standing.
Credit Limit: $500 to $5,0001
Loan Type: Line of Credit
Funding Time: Same Business Day3
One way to determine whether applying for a loan online instead of in person is the right choice for you is to ask yourself some important questions, like:
Determining the answers to these types of questions may help you get a better understanding of whether you’re more suited to an in-person or online loan. If you want a deeper breakdown on the differences between these two, take a look at this article.
There are a number of different factors that can impact how much money you’re eligible for if you’re approved. This can include things like your level of income and what the maximum loan amount is in the state you reside.
It’s also important to understand what the requirements will be to qualify for an online loan. This may not be the same from lender to lender, but they might consider things like:
If you’re looking for more information on online loans, you can scroll through our Blog page to learn more. There you’ll be able to find more resources on various types of online loans, their benefits, how to apply for them, and more. You’ll also see plenty of useful tips on budgeting and personal finance in general.
If you have any specific questions about CreditFresh or the Line of Credit offered through CreditFresh, feel free to reach us by phone or email! You can speak to a member of our Customer Service team at 1-800-766-2007 or email us at firstname.lastname@example.org. You can also get more information by visiting our FAQs page.