When it comes time to get a personal loan in the modern world, the internet plays host to a large amount of loan resources. There are a lot of questions when it comes to online loans, though, are they like real world loans? What are the requirements? We are here to help answer those questions.
What Kind Of Loans Can You Get Online?
There are a wide variety of loans that you can apply for online. Most of them are the same types of loans you would be able to get from a bank or a lender. Here are some of the most common loans that you can find online:
- Unsecured Loan
- Installment Loan
- Credit cards
- Payday Loan or Cash Advance
- Credit Consolidation
- Debit Consolidation Loan
- Home Improvement Loan
- Medical Loan
- Educational Loan
- Emergency Cash Loan
Do Online Loans Affect Your Credit Score?
In most cases your online loan will affect your personal credit score ONLY if you have accepted the loan offer. Normally, by checking rates and offers for a loan will NOT hurt your credit score because the lender use Soft Pull inquiry. If you want to know whether or not the loan you are looking to get reports to the credit bureau, contact with the lender first before you proceed will be a good option.
Are Online Personal Loan Lenders Required to Disclose Fees?
The same laws that regard disclose fees at physical banks apply to those that are online. An online lender is required to disclose the fees and charges associated with an account. That includes interest, the annual percentage rate, and processing fees. If a bank or lender doesn’t disclose these fees they are violating the US Truth in Lending Act.
Look At the Costs
There are a lot of different loan companies on the internet and many of them out there are focused on getting money. Their APR can range from as low as 4.5% to 36% depending on your circumstances. Make sure that you shop around for the best prices on the market. MoneyLend is here just to help with that. There are plenty of options out there and each option, you want both a low APR and a low interest rate. Borrowing from a great reputation company or a company that has been established for a long time is also a plus.
Personal Loan APR
Representative example: assuming a loan of $5,000 over 60 months at a fixed rate of 5% per annum and fees of 3% of the loan amount which results Financing fee to be $150. This would result in a representative rate of 6.22% APR, with monthly repayments of $$97.19, for a total amount paid of $5831.21.
What Are The Requirements for An Online Loan?
For the most part, the requirements for a personal online loan are the same as those for a real life loan. You need to be a reasonable risk for the lender in order for them to extend you an offer of a loan. Before you can get a loan you must first fill out a detailed form online.
What information does an online loan application request from you?
- Your full, legal name
- Your social security number
- Your email and other contact information
- Your income
- How much you pay for rent/regular payments
Does your credit score play a factor in getting a personal loan online?
Your credit score will dictate what level of loan you can get. Those with stellar credit scores will be able to get the best terms on a loan, that means a lower APR and lower interest rates. People with good credit scores can still get good rates on online loans.
However, those with lower credit scores can still get loans online. A bad credit score will not get you a good loan, though. So while not a requirement, having a good credit score will serve you much better when seeking an online loan with lower rate.
A secure income
If you are looking for a loan online you will need a secure income. This shows the lender that you can pay your bills and still pay them every month. Without a secure income, you will probably not be able to get a good loan. Per United States lending policies you can include the income of anyone you live with or have reasonable access to their money. A better income will result in a bigger loan.
No matter whether you are looking to get a physical loan or an online loan you will find that there are very few differences. The main thing to look out for when applying a personal loan online is to make sure that the lender you borrow from is legitimate and don’t get scammed.