Getting a loan is much more convenient now than ever before thanks to online loan lending.
Whether you need cash for repairs, emergencies, or even just to purchase an expensive appliance - you can get it without stepping foot outside your house!
But how does it work?
Can you really get cash without visiting a loan office?
In this article, we're going to help you understand what you need to know about online loans-- from what they are, and all the ways to get approved for one.
There's a lot to cover so let's dive in!
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Strictly speaking, an online loan is a loan where you can apply and receive your cash without ever having to leave your house (everything is 100% done online).
This doesn't mean you won't have to speak to anyone. An agent will still call you to confirm several details. However, the need to visit a loan office is no longer necessary.
Keep in mind that online loans are different from online applications.
Some personal loan providers allow you to apply online, but you will still have to visit the office in person to get your cash.
They aren't strictly “online lenders.” Only a part of their personal loans is done online, unlike full online loan lenders.
You might get the idea that online loans don't require you to talk to anybody at all.
However, that's not the case.
Most online lenders are not fully automated.
This means that you will still have to call an agent to check your eligibility and discuss your options.
But that's not a bad thing at all. This step helps ensure the security of your information.
It also gives you a great opportunity to ask questions and finalize your loan terms. There's no one-size-fits all when it comes to loans, so every relationship is going to look slightly different from person to person.
That's why a fully-automated loan process isn't as ideal as it might sound.
Online loans is a blanket term. As long as you're borrowing from an online lender, that's an online loan! However, typical online loans are a few things such as:
Personal loans are loans that you can get for personal use.
This is different from business loans, car loans, or home loans - which all have a very specific purpose. With personal loans, you can borrow cash for almost anything, whether that be repairs and emergencies, or even just buying expensive appliances.
Most online personal loans are also monthly payment installment loans.
As the name suggests, you pay back the loan amount in small monthly payments - rather than big, fast, payments like you get with payday loans.
These types of loans require a slightly better credit score than typical payday loans, but they also offer fixed monthly payments and lower interest rates.
Finally, online loans are almost always unsecured.
This means that you don't have to provide collateral to get the loan like with secured loans.
Again, unsecured loans require a better credit score than secured loans do. After all, there is no collateral for the lender.
So now that you know what the typical online loan is like, how can you assure that you'll get approved?
Here's how:
Getting approved for a loan online is just like getting approved for a loan offline.
The lender is going to do some investigating to see if you're eligible for credit approval.
Like signature loans, getting approved for online personal loans will depend greatly on how trustworthy you are.
How do you know if you're trustworthy to online lenders?
Here are a few of the things that they look for:
Okay…
So if your credit history isn't the only factor, what else is?
Another thing personal loan providers look for is solid proof of income.
You need to prove that you can pay off your loan amounts. The lender needs to know that the monthly payment amount isn't too high for you.
That's why documents like a pay stub, payslip, or certificate of employment will be necessary when applying for a personal loan.
Even if you have a great job and excellent credit, there are still a few more things you'll need!
One of these is proof of identity.
And no, we're not talking about the usual 2 valid IDs only - though those are important too.
Online loan companies are also going to ask you for more information, such as your social security number.
The best online personal loans may also ask you to provide character references.
Tip: Before giving your character references, it's always a good idea to inform them first! They may be getting a call from the lender, so it's best if they know ahead of time.
Here's a little “secret”
Lenders like it more when you live nearby their office.
That's right, even online loan lenders.
Sure, you aren't going to have to go out to apply for a loan online. This one has more to do with the lender. The closer you are to them, the better your chances of loan approval.
That's why when applying, it's always a good idea to apply for a lender that is in your neighborhood or city. Or if you're in a rural area, a lender within your county.
Also, you will have to provide proof of address whenever applying for a personal loan. This includes a document such as a utility bill, land title, or proof from your landlord.
Applying for a personal loan online is super easy and convenient.
Since it's all online, you'll never have to leave your house during the whole process.
So how is it done?
Here's how we do it at Hermanos Loans:
Let's have a closer look.
First things first, fill out the form!
This form will show us whether or not you are eligible for a loan, and you can also fill in all the important details to make the process much faster.
You may start filling out the form here:
Our loan amounts range from $100 to $1,600. You may also choose the amount you need in the form!
Once you submit the form, we'll review your application and give you a call!
During the call, it's a good idea to ask any questions you may have.
All good online lenders let you know right away how much you are going to be paying. Here at Hermanos Loans, we are 100% transparent with any fees.
Here's how it works:
Desired Loan Amount: $250
Loan Maturity: 6 months
Interest Fee: $4 x 2.50 = $10
Interest Fee Applied over Loan Months: $10 x 6 months = $60
Acquisition Fee: $10 x 2.50 = $25
Total Fees: $85
Final amount for repayment: $335
Amount to pay per month: $335 / 6 = $55.83 per month
The interest fee is $10/month for every $100 borrowed. We also have an origination fee of $10 per $100 borrowed.
So if you were to borrow $250 and pay it back in six months, you'll be paying a fixed monthly rate of $55.83 (see chart above for breakdown).
If you have any more questions, it's a good idea to discuss them during the call.
After discussing over the phone, all there's left to do is send in your documents.
At Hermanos Loans, this typically includes:
There may be additional requirements.
Once verified, we will send your cash straight to your savings or checking account!
That way, you can get the money you need without ever leaving your home.
Wonderful, isn’t it?
And there you have it!
Everything you should know about getting an online loan in Texas.
Ready to get a loan?
Apply for a loan right now by filling out our application form!
How Much Do You Need?
$100 - $300 | $300 - $900 | $900 - $1,600