Differences Between Easy Online Loans and Traditional Loans

iQuanti: In the past, a common way people could get access to loans was by visiting a bank or lender in person. Today, however, many lenders and financial firms offer borrowers more options and convenience with easy online loans. With these loans, you can get the funds you need without leaving home.

Below, we'll explore a few easy online loans available to you, then look at some factors that can make them a good alternative to traditional loan options.

Types of easy online loans

Here are a few common types of easy online loans:

Cash advances

Cash advances are short-term, small-dollar loans that you can repay when you get your next paycheck, typically in 2 to 4 weeks. These loans can be helpful for people with poor credit, as lenders consider additional factors like your income, job history, and current debts when deciding whether to approve you.

Installment loans

Installment loans are loans that you can pay back over time in fixed monthly payments, or installments, of principal and interest. Their predictable payments make them easier to budget for.

Lines of credit

Lines of credit are a form of revolving credit. These types of loans let you borrow as much as you want up to your credit limit, then pay it back all at once or over time. You'll only pay interest on the amount you borrow.

Easy online loans vs. traditional loans

Online loans provide a convenient alternative to more standard loan offerings. Let's look at some specific advantages of getting an easy loan online vs. going the traditional route.

Faster application and funding

Online lenders have less overhead and often use the latest technology to streamline the application and funding processes. Many online loan applications take only a few minutes to fill out, with instant or quick approval if you meet the requirements. Plus, funding can often be done within the same day or within 24 hours. 

Prequalification

Online lenders usually offer prequalification, whereas traditional lenders typically don't. Prequalification involves authorizing a lender to run a soft credit check — which doesn't affect your score — to show you what rates and terms you're likely to qualify for. This process is very quick and easy, and it can help you shop around for the right loan before you submit a formal application.

Lower rates/fees

Since online lenders have fewer overhead costs, such as physical branches, you could find some lenders that offer lower rates and fees. 

The bottom line

There are several kinds of easy online loans to suit a variety of needs. But regardless of the loan you need, looking online can be the quicker and more convenient option. Online options can be much easier and faster to apply for, provide a more flexible loan shopping experience, and offer lower rates and fees than their traditional counterparts.

Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.

Source: iQuanti, Inc.

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Categories: Personal and Family Finances

Tags: financial services, loans, personal finance