{"id":92,"date":"2018-09-25T12:19:09","date_gmt":"2018-09-25T12:19:09","guid":{"rendered":"http:\/\/loanstar.com\/us\/?page_id=92"},"modified":"2019-07-05T19:07:16","modified_gmt":"2019-07-05T23:07:16","slug":"loans","status":"publish","type":"page","link":"https:\/\/loanstar.com\/us\/loans\/","title":{"rendered":"Online loans"},"content":{"rendered":"

Could an online loan be the solution for you?<\/h2>\n

Are you in a financial bind and need money fast? Or do you need some extra cash for a big-ticket purchase or project coming up and are unable to cover the cost? Either way, an online loan may be the solution to your problem.<\/p>\n

Online loans allow you to get the cash you need without jumping through a ton of hoops or waiting for several days or even weeks for a lending approval decision.<\/p>\n

How Online Loans Work<\/h2>\n

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Online loans are quick and convenient. Online lenders allow you to explore your options, and then apply and accept any loan offers that may be available to you at the tap of a fingertip.<\/p>\n

In most instances, it only takes a few minutes to apply. And if you\u2019re approved and you accept the terms and conditions of your offer, you\u2019ll receive funding in as little as one business day. Some online lenders also offer same-day funding options.<\/p>\n

Secured vs. Unsecured Online Loans<\/h2>\n

Regardless of the type of online loan you are searching for, it will either be secured or unsecured.<\/p>\n

Secured Online Loans<\/h3>\n

\"\"If the loan is secured, it is backed by collateral. This means that you\u2019ll have to put something valuable you own, like your vehicle or home, on the line to secure the loan. And if you\u2019re buying a car or home, the loan you receive will also be secured by the asset you purchase.<\/p>\n

So, if you take out an auto loan and fail to make timely payments, the lender could repossess the vehicle. The same rule applies to home equity loans and lines of credit. If you fail to pay back what you owe, the lender could seize your home. (Quick note: while it may be easy to qualify for such loans, they pose a ton of risk, so choose wisely before you move forward).<\/p>\n

With regards to car loans and mortgages, the lender grants you the money to make the purchase with the expectation that they will be paid back. But what if you don\u2019t pay them back? To protect themselves from getting dealt the shorter end of the stick, they retain ownership of the asset, be it your vehicle or home, until it is paid in full. This means that they can repossess the car or foreclose on the loan if you break the terms of the contract.<\/p>\n

Examples of secured loans: title loans, auto loans, home equity loans or lines of credit, mortgages, etc.<\/p>\n

Unsecured Online Loans<\/h3>\n

Unsecured online loans are not backed by collateral. That could make it seem like they pose less risk to the borrower. But if you borrow funds and don\u2019t pay them back, the lender will charge-off the account and possibly sue you. Not to mention that this could mean bad news for your future creditworthiness as well.<\/p>\n

Unsecured online loans generally also have more stringent qualification criteria than secured borrowings. Furthermore, the interest rate you receive will be heavily based on your creditworthiness, as it is a major factor that is used by lenders when making a loan decision.<\/p>\n

Examples of unsecured loans: personal loans, personal lines of credit, student loans, mortgages, credit-builder loan, home-improvement loan, recreational-vehicle loan, etc.<\/p>\n

Benefits of Online Loans<\/h2>\n

Online loans are accompanied by a plethora of benefits, including:<\/p>\n

Extensive loan options.<\/h3>\n

\"\"Regardless of your financial situation, most lenders have a loan product that may suit your needs. And if they don\u2019t, they are usually part of a network and can refer you to lenders that are able to get you the funding you need. You will also find that many online lenders are flexible, and allow you to adjust your loan offer until you reach a monthly payment amount and terms that are acceptable and affordable for you. This means you won\u2019t have to settle for the few options that are available at the local bank or credit union.<\/p>\n

Online loan search tools do the legwork for you.<\/p>\n

Before you apply for an online loan, consider using an online search tool, like this one, to take the hassle out of finding the most competitive loan offer on the market. All you have to do is answer a few questions about your finances and income. Depending on which site you choose, you may be able to complete the application and e-sign the loan documents directly from their portal.<\/p>\n

Quick and efficient application process<\/h3>\n

Whether you use an online loan search tool or apply directly with the lender, it should be a streamlined application process. In most instances, you won\u2019t have to visit a brick-and-mortar location to fill out a mountain of paperwork or provide any supporting documentation. Instead, you\u2019ll be able to do everything online, including uploading your paperwork.<\/p>\n

Convenient<\/h3>\n

One of the best parts about online loans is the ability to shop from the comforts of your own home or while on the go. If your work schedule is hectic or you\u2019re on the road often, visiting a location isn\u2019t that ideal.<\/p>\n

Even better, most lenders allow you to apply 24\/7, and some have customer service representatives standing by to assist you with the processing of your loan. So, if it\u2019s Saturday at 9 pm and you find yourself in a financial bind, you may still be able to access the cash you need by Monday afternoon or Tuesday morning.<\/p>\n

Fast Funding<\/h3>\n

\"\"If you\u2019re strapped for cash, chances are you don\u2019t have a ton of time to spend waiting around for loan approvals. You need the money and you need it now. But even if the need isn\u2019t urgent and the expense is something you\u2019ll be taking care of in the near future, it\u2019s always a good feeling to know you\u2019ll have the money in the bank when the time comes.<\/p>\n

With most online lenders, you can expect to have the cash deposited into your bank account in as little as one business day. (Note: Delays related to the processing of your application or bank holidays could occur).<\/p>\n

No credit check options<\/h3>\n

The good news is there are online lenders that specialize in approving loans without a credit check. This means that all types of credit ratings are accepted, as long as you have the means or income to repay what you owe.<\/p>\n

Drawbacks of Online Loans<\/h2>\n

Small loans with competitive interest rates may not be an option<\/h3>\n

Maybe you need a small loan, between $400 and $1000, to get you through a rough patch. But you don\u2019t want to pay a fortune in interest. You may have a tough time finding online lenders that can meet your needs unless you settle for a ridiculously higher interest rate. And while payday loans are always an option for smaller loan amounts, the interest rates are typically well over 300 percent.<\/p>\n

Some loans have exorbitant interest rates<\/h3>\n

As mentioned earlier, the interest rate that accompanies unsecured loan products is usually determined by the applicant\u2019s creditworthiness. This means having less than perfect credit could still mean a hefty interest rate for you, even if your income is more than enough to make the loan payments.<\/p>\n

And if you decide to go with a secured loan product or no credit check loan, expect extremely high interest rates as these loans pose more risk to the lender.<\/p>\n

Scam artists<\/h3>\n

Watch out for fraudulent companies out there that use the information they gain from potential borrowers to steal their identities. You can protect yourself by following the advice suggested in the next section to properly evaluate online lenders.<\/p>\n

Evaluating Online Lenders<\/h2>\n

Ready to submit your application for an online loan? Ask yourself these questions when evaluating lenders and loan options:
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