5 Reasons Why Online Personal Loan Providers Are Better Than Traditional Ones
When it comes to getting a personal loan, most people automatically think they should head down to their local bank branch to apply.
But banks aren’t the only option for personal loans these days. Online personal loan providers have been growing in popularity – and for good reason! They offer a ton of advantages that old-school banks simply can’t match.
Here are the top 5 reasons you should seriously consider getting your next personal loan from an online provider rather than sticking with a traditional lender.
Ease of Application
Let’s start with the loan application process itself – arguably the first major pain point when getting a loan.
Going through a bank typically means setting aside a big chunk of your day to drive to the branch, fill out a giant stack of paperwork by hand, wait around to speak with someone, and then hope they eventually get back to you with a decision. It’s time-consuming and inconvenient, to put it mildly.
Online lenders completely transform the application experience for the better. You can apply any time of day from the comfort of your own home. The entire process happens online in just a few minutes.
Their application forms are incredibly short and straightforward – we’re usually talking about 10-15 basic questions at most. No confusing financial jargon, no endless paperwork. Just provide some quick personal and employment details, grant permission for them to access your credit report, and that’s it.
You can conveniently apply it on your phone, tablet, or computer – whichever you find easiest.
Many online lenders even allow you to save a partially completed application so you can finish filling it out whenever it suits your schedule. No need to rush!
Once you submit the application, you’ll get an instant initial decision. If approved, you can have your loan funds deposited into your bank account in as little as 2-5 business days. It’s incredibly fast and simple compared to the traditional alternative.
Highly Competitive Interest Rates
When it comes to loans, the interest rate is one of the most important factors since it determines how much you’ll pay over the life of the loan.
Online lenders have much lower overhead expenses compared to physical banks that operate branches and employ huge staff.
Sometimes, they pass a portion of those savings directly to borrowers by reducing rates.
Transparency and Comparison Tools
Online lenders lay it all out for you in simple terms – interest rates, origination fees, late fees, the whole enchilada. No sneaky fine print or hidden surprises down the road. What you see upfront is what you get.
Many also let you easily compare personalized loan quotes from multiple lenders at the same time. Super convenient! Just punch in some quick details and instantly see your best options side-by-side, apples to apples.
It’s way better than driving around collecting info bit by bit from different bank branches.
Unparalleled Flexibility and Customization
Here’s another sweet perk of online lenders – the ability to customize your loan to fit your situation perfectly.
Unlike rigid, cookie-cutter bank loans, online lenders encourage you to tweak details to your liking. You’ll usually find options to:
- Fine-tune the loan amount in small increments
- Pick your ideal repayment timeline – 3 years? 5?
- Choose the payment due date
- Select weekly or monthly payments
- Set up autopay from your bank account
So much flexibility! You’re in the driver’s seat to strike that ideal balance of affordability and getting the funds you need.
Unless you have a specific need to borrow from your existing bank, there are so many reasons to let an online lender simplify the loan process and potentially save you big on interest.
Of course, not all online providers are equal. Make sure to thoroughly research your options.