New technologies have made our lives easier in many ways, but speaking in a financial sense, we do not always see the great benefits that it entails.
In terms of digital loans, we can see a lot of advantages to which we have access, however, below we list only the 5 most important and that can help you make the decision to try it.
You decide how much and for what term
Internet loans generally offer you more flexibility about the amount and term in which you want to pay it. Most bank loans have pre-established conditions and you cannot choose how to make your payments, many times you cannot even choose an amount, they simply offer you a loan for an amount that may be insufficient or too high for your needs and ability to pay .
Online loans offer you the opportunity to make weekly, fourteen, biweekly or monthly payments; Besides, you have the freedom to choose the right amount for you.
Quick approval and easy comparison
The risk models used by banks to know if they can lend you money are generally longer than those of an online loan. In a bank it is very likely that after finishing the procedure you have to wait about a week to be told if they can authorize the loan, in addition to that if you want to compare options, you will have to go to the different banks to request information with an executive or chutarte the extensive contract that, only sometimes, you can consult on the internet.
In most of the platforms that grant loans online you can obtain a pre-approval in just a few minutes and know in less than 48 hours if your loan is authorized. You can also quickly compare the conditions and interest rates on their pages, the information is easily accessible and almost all have a credit simulator that allows you to know the payments and conditions of the loan you want to request.
Rates according to your profile
The banks have a business model that standardizes the interest rates of the loans offered, they do this because they have contemplated that some of their clients will not pay. This is why they are generally more expensive, because good payers pay the broken plates of the unfulfilled.
In some models of online loans such as P2P Lending, the interest rate is according to your profile. That is, if your credit bureau is clear of arrears and you have proven to be a good payer, the rate they will offer you will be personalized and probably better than that of a bank.
Transparent and no hidden charges
A large part of the extra charges for a bank loan are hidden, the opening fees, the modification of the interest rate, the charges for late payments and other modifications that can seriously alter the cost of your loan are only expressed in the small letters of the contract.
With the intention of facilitating the decision, the internet lending platforms tend to be excessively transparent and clearly communicate the payment terms on their pages (or even by telephone if requested). They do not leave any space for hidden charges, in the end what they want is for you to opt for a loan of this type and not for a bank one, so they get on your side.
No rows or paperwork
In order to apply for a bank loan, it is usually necessary that you go directly to a branch, take a turn and wait approximately 40 minutes for an executive to assist you. Afterwards, you will still have to spend a little more time delivering the papers that you request and waiting for copies to be taken. If you forgot some paper or you need something you do not bring at that time, you cannot leave your request in half and return another day to continue where you stayed.
An online loan has the facility to do everything from your home, and although you will also have to prove your ability to pay with a document, you do not need any collateral or your payroll receipts, internet loans generally have the flexibility so you can Check your income in multiple ways. In addition, you will not have to wait for a turn or queue, you can start your request from any device with internet at the time and day you want. And if you need to leave your application in half, you can return at any time to complete it from where you stayed.