Why Apply For a Loan With an Online Application?
There are a number of reasons to apply for personal loans with online loan applications.
An individual may be looking to pay off credit cards or to consolidate debt by filling out an online application. Another reason is to get the cash for home improvements or a major purchase. Many times an emergency will arise where you need to borrow money.
Auto loans are also in demand. Most people don’t think about using a lending network or peer-to-peer lender to finance a car, but it can be a great choice. Banks and credit unions can be slow and take days to process or pre-approve a loan. Online loans applications are much faster and more efficient.
Other reasons can be a start up business venture that needs capital to finance employees or equipment. You may want to re-finance government or private student loans that have accumulated since you graduated from college.
All of these are great reasons to get a loan online. Below we go into detail on the best loan applications and lenders that will get the job done for you. Keep reading!
You can apply through traditional banks or choose a more modern method and get an online personal loan. High tech lending platforms now use a network of lenders, where you will be matched to top lenders.
Other options are online peer-to-peer lenders that you will apply directly with to borrow the amount needed. They loan money to borrowers by getting funding through individual investors. This is all done automatically through their lending platform. It has revolutionized the ways people can borrow money online and has simplified the entire process.
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What Are Online Personal Loan Options?
There are some great online personal loan options from top lenders. We will review a couple of the best options for you.
A lending network for online personal loans can be a great tool.
When you fill out the online personal loan application form from a lending network like PersonalLoans.com you get access to their large network of lenders.
You just fill out one easy form and then they will match you to the best lender based on the information provided.
The largest of the peer-to-peer lenders is LendingClub.com. They have individual investors fund the loans. It is a simple loan application form that only takes a couple minutes to fill out. You will then be presented with your loan rates and terms. Once you accept it will be funded and money can usually be direct deposited into your account within a day of approval.
Personal Loans For Low Credit Scores
There are actually a couple really excellent option if you have a low credit score. Below we give you an option if you have bad credit or if you have just fair credit (600 – 699). Both of these companies have an easy process to get personal loans completely online. They work with people that fall in these lower credit score categories. If this interests you, keep reading.
Bad Credit Loan Option
So what if you have a low credit score or even bad credit? We do have a great choice for those who want a personal loan even with bad credit. Check out OppLoans.com and see what a good option this can be for you.
Fair Credit Score Loan Option (Score Between 600 – 699)
So what do you do if you do not have a great credit score, but just are in that fair credit area. There is a great option that we highlight below. You can get up to $20,000 and this lender works specifically with people in that fair credit range.
Most loan applications online are easy to fill out and you can get a quick response and money in your account quickly.
You can easily apply on your desktop computer, mobile phone or tablet in just a few minutes. Most online lending platforms have setup the process to be quick and simple for borrowers. The process can be completed 100% online.
Top Reasons to Apply For Loans Using Online Loan Applications
We will break down in more detail some of the key benefits and reasons to utilize online loan applications.
Large Purchases or Home Improvement Projects
One key reason why you might want to apply online for a personal loan, is if you have a large expense or home improvement project to complete.
Today many people are wanting to modernize their homes with newly remodeled kitchens and bathrooms. This not only gives the owner all the modern conveniences to enjoy. It can also add significant value to the selling price of a home. The return on investment can be huge when talking about new bathrooms or kitchens. This is normally where you will want to focus to get the most return on your investment dollar.
A personal loan can typically carry a much lower fixed interest rate as well as a higher amount you can borrow. Compare this to putting everything on a credit card that may have a changing variable rate and credit limit. For large purchase like home improvements, personal loans can get your from $1,000 up to $40,000 for your projects.
This can save you money in credit card interest and also keeps your balance open on your credit card.
Many people pay off their credit cards each month and may just use a credit card for cash back rewards. They do not want to carry a large balance, even if they have the open credit line. The other nice thing about a personal loan is that it is unsecured and you have a fixed payment and end date.
So for large purchases or a large home project it just makes sense to apply for a good personal loan online.
Payoff and Consolidate Credit Card Debt or Medical Expenses
A second and usually most popular reason is if you have a number of smaller debts or multiple credit cards with balances. It can be a smart and convenient way to consolidate all of this debt into one low interest loan.
Some people over time will also accumulate debt from medical expenses or high deductible insurance plans. The consolidation of debt into a personal loan can help take care of this situation and lock you into a fixed rate with a steady payment.
This can then help eliminate this debt forever by you making regular steady payments until its paid off. This can also help you improve your credit score. By showing regular onetime payments to a lender is just another way to improve your credit history and score.
A personal loan can be spread out over a 2 – 5 year period, depending on the loan provider.
This has made consolidating credit card debt or other loans simple in todays modern age with online loan applications and lending platforms. You can simply complete the entire process on your desktop computer, laptop or cell phone.
You will then just make one easy loan payment and simplify your finances.
Build and Improve Your Credit Score
Taking out an online personal loan is a great way to build your credit score. When you apply for a loan online and get approved, your on-time payments are reported to the 3 major credit bureaus.
If you are responsible with your new loan and make all your payments ahead of schedule or at least on time, it can have a positive effect on your credit score.
This is extremely important as you will find out that interest rates on loans are mainly based on your credit score.
A low credit score is typically anything below 600, but to really get a good deal on a loan you need a credit score above 660.
What If I Have Bad Credit or a Low Credit Score?
If you have bad credit or just a low credit score we recommend using OppLoans.com. They are rated 5/5 stars on Google & Facebook. You can get up to $4K tomorrow with OppLoans.
They are a great option for those with a low credit score. Currently they offer loans in the following regions: (AL, CA, DE, ID, IL, KS, MD, MO, NM, OH, SC, TN, TX, UT, VA, WI). They are adding more states all the time, so we will keep you updated. Applying Online will not affect your credit score!
If you are not from one of the states below and have a fair credit score you can Apply for a Personal Loan up to $20,000 at LendingPoint.com!
You can run 3 free credit reports once a year at AnnualCreditReport.com. Review your reports for accuracy and fix any issues. Make sure you clean anything that is negative on these reports. This alone will bring up your credit score and will help you on future loan applications.
What Types of Loan Applications are Online?
There are a variety of loans you can apply for online. We will review some of the more popular below:
A personal loan is typically taken out for a larger purchase or debt consolidation. It is usually at a lower interest rate than a credit card and will build your credit score.
Way back when, personal loans were issued by your bank, a credit union or a small finance company. You would usually have to drive up to meet a loan officer and fill out lots of paperwork. You would then wait days for the results and possibly not get approved.
Today we have high tech lending platforms that allow you to complete the entire borrowing process online. With the internet there have been some exciting new developments in what is called peer-to-peer lending.
It is a very interesting concept and individual investors can review you loan and will fund it for you over the lending platform. The application process is quick and loans can be used for almost any reason. They range from $1,000 all the way up to $40,000. The largest peer-to-peer lending company is Lending Club.
You can use them for a motorcycle loan, finance a boat, RV Loans, plastic surgery financing, medical loans, pet loans, deposits on homes, vacations or a hundred other reasons. They are worth checking out if you are savvy online and want a more modern method of getting a personal loan through an online loan application.
These peer to peer loans can get you a loan quickly and usually within a couple days you can have money deposited in your account. The entire process is done online.
If you are not sure about the type of personal loan you want you can use a lending network like PersonalLoans.com.
They have hundreds of lenders in their network including banks, peer-to-peer and other sources. You can simply fill out one simple form online and they will get back to you with a lender that will fund your loan.
Student Loan Refinancing
Student loans have been an issue with recent graduates averaging around $50,000 or more in student loan debt. Medical students can have well over $100,000 in student loans to pay off. We do discuss how to get a new student loan in articles on our site.
But a real issue facing students is the number of student loans they have and how to consolidate those into one loan. This means a lower rate and just one payment each month to worry about.
One of the best ways to accomplish student loan refinancing is to go to an established company that specializes in student loan refinancing. This gives you access to a powerful resource that has a network of banks, credit unions and other lenders to get you the best possible rate and terms.
If your loan are not too large, you can also consider a regular unsecured personal loan to pay them off. This can be through a lending network or P2P lending platform.
Small Business Loans
You can get the best business loans for your small business based on your annual revenue and years that you have been in business.
If you are a startup, you may have a difficult time trying to get a traditional loan for your business.
I have spoken of peer to peer lending for personal loans, but it also applies to a new company or startups trying to raise working capital. These peer-to-peer lenders have investors review the loans and fund them depending on their level of risk. This is great for borrowers who need to raise money and get a good rate at the same time.
We include informational articles on specific lenders and discuss peer to peer lending on our site, so be sure to check them out. You will find this type of funding and online loan platforms amazing and they open up a whole new world to raising money and capital.
If you need less than $40,000, you can apply for a regular personal loan and use it for your business. Now if you need more than $40,000 you will probably need to get approved for an actual small business loan.
Are Online Loan Applications Safe?
Yes, online loan applications are very secure and use encryption technology.
Most people have now been using online banking for years, including myself and have had no security issues as of yet.
Consumers are finding it easier to search for and apply for loans online. It is usually an easier process and since the overhead is much lower, many of the providers can offer much lower rates.
Who Offers Loan Applications Online?
Bank Loan Applications:
Bank of America Personal Loans, Wells Fargo and Discover personal loans are some key providers. Chase personal loans are not offered, but they do have alternatives such as home equity lines of credit.
Online loan alternatives to bank and credit union loans have been growing in popularity. There are lending networks as well as peer-to-peer personal loans.
Online Personal Loan Applications:
Another leading trend is Peer to Peer Lending. This is where individual investors will fund personal loans for borrowers.
It is actually quicker than a bank loan and many times much less hassle. Some of the bigger P2P lenders are Lending Club and Prosper.
Upstart Loans is another that looks at more than just your credit score. They take into consideration your education and employer as well as other factors to make a decision.
We discuss online personal loans from sources like lending networks and peer-to-peer lenders through this site.
Small Business Loan Applications to Raise Working Capital:
If you are looking for a small business loan, you should seriously rethink how you will accomplish that goal. Business loans can be complex and involve applying at multiple lenders.
When you are a really small business and are just looking for an amount under $40,000, you should consider just applying for a regular unsecured personal loan. It can be an effective way to raise the money you need for your business without all the hassle.
How Much Money Can I Get With An Online Loan Application?
Normally a typical personal loan will get you anywhere from $1,000 to $40,000 entirely online. The amount you get usually will be based on your credit score as well as employment history.
How Long Do I Have To Pay On These Loans?
Flexible loan terms are usually from 12 to 60 months.
Always try to get a loan with terms where you can pay it off early with no penalty.
Online Loan Applications are a simple way to get the cash you need for debt consolidation, large purchases or projects, medical expenses, emergencies or car repairs.
Consolidation loans are a good way to combine credit cards, medical bills or other debt into one easy fixed interest rate payment.
Picking the right loan can give you peace of mind, save money and improve your cash flow each month. With online loan applications, the process is easy.