What is different about asking money from an online lender than from the bank you have had for years? The new generation of online lender is focused on delivering online credits in an increasingly easy way.
Online lenders can tell you in a very short period of time if your credit is approved or not, how much you can borrow according to your case and how your payments will be. Most traditional banks are different: With some of them you can fill out an application online, but it may take a while to get an answer (some bank member might have to review the application, and they might even ask you to visit a branch in person to ask you more questions).
Best interest rates
For some people it is always worth shopping, and online lenders often have the lowest interest rates. With a good online search you can find lenders that offer interest rates and service charges at a very low cost. And this is because online lenders do not have to face the same regulatory costs as banks or credit houses.
Banks and credit houses have become increasingly fussy when lending their money. It is easy to get a loan if you prove to have savings and an excellent credit life. But if on the contrary, so far you are starting to create your capital and you have a “not so clean” credit history, your application will most likely be rejected. Online lenders are more willing to approve loans to people who have an average credit life using alternative information to assess their creditworthiness (such as payment of public receipts and even data from their social networks).
Most online loans are not guaranteed, which means you won’t have to commit co-debtors or other banking companies that support you to get an approval. This can make online loans more secure than borrowing against your assets, if you fail to pay an unsecured loan, the credit life score will go down, at a minimum, but you won’t have to face any type of seizure or problem mortgage.
How to borrow
Getting a loan online is similar to getting anywhere else, although it will probably feel easier. You will need to provide personal information, such as your ID number and address. Depending on the lender, you will also need to provide financial information (such as information about your work and income, expenses and others).
Types of lenders
The best online loans come from non-traditional lenders. In other words, your local bank or credit house is probably not involved with online loans, and even less likely, large bank franchises. Usually new lenders focus exclusively on making a specific type of loan. They do not want to offer savings and checking accounts, credit cards or business services.
The best way to find a good loan opportunity online is to search, compare and go with the best one. Of course, it is prudent and necessary to do a little research on your lender to make sure you are working with a reputable company.
Avoid long-term loans
When looking for online loans you will find a large number of results that are essentially long-term loans. These are services that must be paid over a large period of time that usually lead to an expensive spiral of debt. You can identify these types of loans, to avoid them, taking into account the following:
Very long terms: As the name implies, they are paid over very long periods of time. Ideally, you should look for credits with which you can make monthly payments for a short period (and that you can pay before the term without any penalty for prepayment) or credits for daily payments for at least one month.
High-interest rates: This feature is easy to identify. The interests of these types of loans will be, by far, the highest in the market. If you are going to pay much more in interest taking out a loan, than what you normally pay to use your credit card, then it is surely a bad deal.
Now that you have everything clear, are you ready to apply for your loan?
Amaryllis helps you! We are one of the first services to deliver loans for consumption, completely virtual in Colombia. Request your credit 24 hours a week.
We have a super intuitive interface to facilitate our clients’ requests and we have other benefits such as: discount vouchers, referral system, and applications to organize your finances or appointments. Our range of satisfied customers is 98%, which makes us one of the most reliable online credit systems in Latin America. Verify that you meet the requirements and borrow us now!