If you’ve not tried taking out an online loan in the past, then you’re missing out on something quick and easy when it comes to getting the funds you need to cover unexpected expenses. What most people fail to realize is that there are now websites that offer the same, if not better, lending services to individuals in need of money aside from traditional banks and brick-and-mortar lenders.
When you want to work with an online lender, all you have to do is to search the Internet, and you’ll surely find many of them. They come in handy in times of emergency, that’s why they’re also considered as emergency loans. However, how do you know which lending company is the best for you? Again, there are plenty of them out there, and for you to select one that best fits your needs, you have to consider the following factors:
- Better Business Bureau Rating
The Better Business Bureau is one of the leading consumer reporting bureaus in the United States and other parts of the world. In its early days, the bureau helped the public identify fraud, scams, and other complaints against businesses. The agency has since expanded and has become one of the most trusted consumer watchdog groups, especially in the United States and Canada.
The Better Business Bureau rating system gives consumers the opportunity to have the power of being able to find and trust companies, which is the perfect way to avoid business scams, such as those that might occur through email. Consumers can view the BBB rating history of each company, as well as the number of complaints filed against it. Business owners can also see their own history in the system. This is a great tool for business owners because it allows them to see if there are any complaints against them or their businesses.
Furthermore, BBB rating history helps businesses ensure that they don’t have any hidden agendas, which might influence their performance in the business world. If they have a history of negative reviews, it should be a red flag to any company or individual that wants to partner or work with them. That being said, it’s very important to check the BBB rating of your prospective online company to make sure that they’re a reputable one.
- Loan Repayment Plan
A loan repayment plan is an agreement in which a borrower or lender agrees to pay back funds that they’ve loaned to another person, company, or government over a short or long period of time, usually along with a repayment of interest on the loan. The repayments are usually based on the principal amount owed and may be in the form of monthly payments that accumulate over a defined period or interest only.
Repayment plans vary, depending on the online loan companies and individuals, and one can be set up as part of a loan agreement. Generally, there are two types of repayment plans: fixed rate and variable rate. If you’re going to take out a loan with a fixed rate repayment plan, then, you’re expected to make your monthly repayments on time at the specified interest rate.
A variable rate scheme, on the one hand, is one in which the interest rate can vary, usually up to five percent, and won’t be fixed in any way. It’s possible to obtain a lower interest rate through a variable rate plan. This can be an advantage for borrowers who can’t afford to keep up with fixed rate repayment arrangements. However, you must also ensure that your interest rate is within the allowed range. If you don’t do this, you could be faced with paying a higher interest rate than you originally anticipated, or a penalty if your repayments aren’t done on time.
- Different Types Of Loans Offered
Most online loan companies offer the following loans to borrowers:
- Personal Loan – A personal loan is an unsecured loan wherein no security is needed by the borrower in order to receive the loan. In financial matters, a personal loan is the lending of funds to one person, organization, or any entity, and the borrower is obligated to pay interest only on the total loan amount, as well as to pay back the principal.
Usually, the terms of a personal loan are very short, and there’s no credit check required for approval. Personal loans are available for any purpose and any amount. For instance, you can use one to fund a vacation or buy a brand new or used car.
A personal loan is most common for emergencies when you need cash before your next paycheck, or when you’re unable to meet your debt obligations with your creditors. For example, if you have a car loan and are delinquent on the payments, but don’t own a home or have bad credit, personal loans are an alternative to getting a loan from a lender.
- Student Loan – A student loan is a kind of unsecured loan intended to help financially strapped students pay for their schooling and other associated costs, such as books and living expenses. In the past, college expenses were generally considered to be expensive, especially for those who don’t receive financial aid from their parents. Since then, however, more scholarships and grants have been made available to students in order to help them pay for their education.
Other loan types that you can get from an online lender are mortgage loans and business loans.
- Loan Processing Time
The loan processing time is the length of time taken in processing a loan application or filling up a request form for a loan. There are some companies who offer fast processing time in order to help their clients in making a better decision and getting the money they need quickly. Moreover, there are some companies that help their clients by taking up the entire loan application process from start to finish to make sure that everything goes smoothly and the borrower receives the funds within the same day.
Thus, if you want to get your loan processed within the shortest possible period of time and don’t want to wait for weeks to have the money sent to you, make sure to ask about the loan processing time of your prospective online loan company.
You can get your online quotes and information about the various services offered by different online lenders through their websites. These quotes will help you choose a loan provider that best suits your needs. You can get all these details online from the websites of these companies, and it’s a must to make comparisons before selecting one.
If you have the option of choosing between two or more companies, make this comparison very carefully so that you can select a company that’s able to give you the best possible loan deal. Note that the quotes offered by the various loan providers aren’t always the same, so you need to read up on the loans offered by different companies so that you can choose the best one.
- Interest Rates And Other Fees
Whether you’re getting a loan from any of the banks and financial institutions across the country or from lenders online, it’s important to consider the interest rates, the loan tenure, the fees, and other charges that you might be required to pay to the lender for the loan you take. Make sure that you have enough information about the interest rates and fees before making your final decision.
If you know how long it will take you to get a loan, then, you should also have an idea about the costs that will be involved. You can get a loan either online or by calling the lender. This will ensure that you get the best possible loan deal and that you don’t end up paying more than you should.
- Customer Service
Customers expect to be treated courteously and want to feel valued. They expect to hear their salesperson’s name, even if the business isn’t in their immediate area. In today’s fast-paced world, it’s becoming more important than ever to maintain close relationships with your customers. Customer service is an essential part of any lender’s skill set and is critical in maintaining good customer relations.
In today’s competitive business environment, it’s not enough for companies to just give a warm smile, take the time to answer questions, and provide all necessary information. Online loan companies must also be willing to work on their relationships with clients, and this is one quality you should be looking for when choosing an online loan company.
Considering the factors above is very important if you want to work with an online lender that can help solve your financial difficulties instead of adding burden to your shoulders. Of course, on top of the things discussed above, it’s also essential to ensure that the online loan company you choose provides security to borrowers, especially that you’ll be required to give your personal information out during the loan processing. The website of the online lender should be secure and should keep all borrower information private.