You want to get a loan, and you want the cheapest interest rate. A flexible repayment schedule would be nice too. You want the widest variety of options possible. You might have bad credit history, and you wonder if it would even be possible for you to get a loan. You would like the process of applying for your loan to be as quick as possible. An online loan might be the answer for you, because some companies offer online loans that have all the advantages just mentioned.
You need to be careful, however, because online loans have disadvantages too.
First, you may find that online mortgage lending fees can be much cheaper than the fees charged by traditional lenders. You might also notice a bigger variety of mortgage programs available, and the programs can include lower rates of interest and flexible repayment terms.
If you have bad credit history, you might find lenders who are much more receptive to you. Online lenders usually offer more alternatives to those with bad credit.
The approval process might come much quicker with an online loan. It can take several days to get approved for a traditional loan. Even if you are declined for an online lender one time, you can apply again to another right away quickly, and like with the first lender, get a quick answer.
There are disadvantages to borrowing money online, however.
Not all online mortgage lenders are represented in all 50 states. Before you even try to get a loan with a particular online lender, you should make sure that lender is represented in your state.
Those who give online loans are not always as accountable as traditional lenders. You have to do your homework on the company you are using. Keep on top of your application. Be sure the company you want to use is legitimate and will fulfill promises regarding interest rates and terms. Unlike traditional lenders, online lenders are not governed by a governing body you can complain to.
With any kind of loan, the terms offered can be in the best interest of the lender, not the borrower. Do research and comparison shopping.
Never pay a fee before learning if your application is successful. A legitimate online or traditional lender will not charge such a fee. Some online and traditional lenders do charge such a fee, however.
Getting an online loan might be a good thing for you, but you should do research and ask questions. It also would not hurt to get a quote at the same time from a traditional lender.
If you do an Internet search to get an online loan, you may find that traditional banks will let you apply for a loan online. You will also find some lending institutions that only offer online loans.
One company that offers online loans is www.eloan.com. The company offers credit card services, home equity loans, calculators and tools to help you make an educated decision. The company offers personal loans, loans to purchase or refinance a home, home equity loans, motorcycle loans, and automobile refinance loans.
One company that allows customers to find banks that offer the lowest interest rates in their neighborhood is www.mortgagebot.com.
If you own an online or e-business and want a loan, you can check out the website, www.ecredit.com. Besides providing loans, the company will also help a new company manage their assets. The company has formed partnerships with others to speed the lending process. Customers of the company have included Fortune 1000 companies, such as Hewlett-Packard. Loans Direct (www.loansdirect.com) offers a similar service.
After you do the research, you may or may not decide getting an online loan is for you. If, however, you need a loan, it might be worth at least considering.
Reference:
- www.free-secrets.org www.eloan.com ; College textbook: e-Business & e-Commerce by Deitel, Deitel, & Nieto, published Prentice Hall in 2001
