Loaning money from banks is not always an option. Most of them have considerable requirements in order to find you eligible for their services and, even if you meet all of them, you will still have to attend several meets to get a loan. This can make the actual process of borrowing the money that you need last anywhere from 2 to 4 weeks. During this time you will have to collect a wide variety of documents that must be submitted as part of the process.
This having been said, using an online service to borrow money is much easier and often takes a lot less time. There are hundreds of services that are regulated by the federal government, ensuring that all of the private and financial data that you submit as part of your application will be safe. Furthermore, unlike banks, the sole purpose of these services is to help their customers get the money that they need in record time, which means that the application and evaluation processes are streamlined.
You have a large number of platforms to choose from
Online money lending services are owned by private companies, which means that there are hundreds to choose from. Each has its own interest rates and offers, so you can sift through them until you find one that serves your purposes.
It is also important to mention that there are two main types of online lending services:
- Peer-to-peer platforms are companies that only link borrowers to lenders and then oversee the transfers so that everything goes smoothly. They do not own any of the money used in transactions, only act as safeguards;
- Commercial lending companies are extremely similar to banks in terms of structure and procedures. They use the money that they receive from creditors in order to give out loans to anyone who meets a set of simple conditions;
The main difference between the two is the fact that p2p platforms often have lower requirements but higher limitations in terms of how much money you can borrow and for how long.
Most services approve your loan request extremely fast
The fact that these services only serve the purpose of lending money, their approval processes take considerably less than those of banks. From creating an account on the website and submitting the required information, you should get approval and have the money transferred to your account in less than 24 hours.
Generally speaking, the time that it takes to evaluate your request depends on how much money you want to borrow. In most cases, loans that are under $1000 will be approved in under 24 hours, and once this happens, the money is transferred in a matter of minutes.
You can use an online app and streamline the process
Most of these services also offer apps that you can install on your tablet or smartphone. These are free to download and use and will constantly be linked to your website account. You can use the apps in order to see how much money you’ve borrowed when you have to repay it, and some can even be used in order to apply for loans faster.
Some of the personal information that you have to submit will be in the form of photographed documents, and the apps help simplify the whole process.
Your credit score does not matter
Online money lending platforms do not typically perform credit score checks, making them a great choice if you are at a point where banks would not find you eligible. They may ask you to submit the score, but this information will not matter when it comes to deciding if your request will be approved or not.
This also means that borrowing money from these platforms will not affect your credit score. In many cases, it is better to get small loans using an online service simply because it will not show up on your permanent financial records.
You may not even have to have a job
Depending on how much money you need to borrow and for how long, you may not even have to have a job in order to be eligible for the loan. There are platforms that will agree to lend you up to $500 regardless if you have a stable source of income or not. However, you will have to submit a bank statement or to provide the details of a credit card in case you won’t be able to pay the money back on time.
Online money lending services have a lot of advantages when compared to banks, especially if you need to borrow a relatively small amount of money. Most of the platforms have low interest rates if you need short-term loans and they won’t perform a credit score check, so you can use them regardless of how bad your relationship with your bank may be.