With all the stresses of modern life, luckily there’s a convenient way to borrow the money you need, fast — called an online loan. These types of loans allow you to apply online through a lender rather than having to make a trip to the bank. Online loans provide an approval decision usually within minutes and transfer the money directly into your checking account as soon as tomorrow.*
While both online loans and brick-and-mortar loans share a few similarities, such as having interest rates and requiring repayment, they are for the most part very different. For starters, a brick-and-mortar loan applicant must visit a bank to apply for a loan in person and must submit income information in the form of pay stubs for a bank analyst to review. This can take a number of days and, if approved, the bank will assign the applicant a set payment schedule and interest rate. Once approved, funds from a brick-and-mortar loan can be wired or sent by check via mail.
An Online loan allows an applicant to apply through a website. Online loan applicants are typically required to submit substantially less personal information, other than proof of current employment and a bank checking account. Because it’s processed in real time, online loan approval takes only minutes. Once approved, an online loan applicant will receive funds in their checking account as soon as tomorrow.*
Although no financial situation is the same, anyone who needs money, quickly, and wants the convenience and privacy of applying from a computer or smartphone, should consider an online loan.
Just like expenses vary from sudden medical bills to repairing a car, so do the ways you can use an online loan. Whether you need a convenient way to consolidate debt or are looking to improve your home, an online loan gets you the cash in your account right when you need it for personal use.
Here are just a few ways you can use an online loan:
|The most common use for an online loan is to combat sudden and unexpected expenses or emergencies, like car repairs and medical bills.|
|An online loan lets you consolidate one or more of your unsecured debts, such as a credit card balance, into one, easy-to-manage regular payment.|
|Rather than having to use your savings or a high interest credit card, an online loan is a way to fund home repairs.|
For those who need money fast and are looking for more convenience, there are many advantages to getting an online loan.
Convenience: unlike brick-and-mortar loans, an online loan allows you to shop, compare and apply from the comfort of your own home. Just fill out the online form and get approved quickly. From receiving your funds as soon as tomorrow* to customer service questions, everything can be handled exclusively online.
Competitive rates: because there are a number of online lenders, interest rates are competitive and can be easily compared when shopping for an online loan.
Money in your account - fast: once you quality for a loan, you can expect to see money deposited in your account fast—with RISE, funds can show up in your checking account as soon as the next business day.*
Just like every financial situation is different, every online loan lender is different. When shopping for the best online loan for you, it’s a good idea to compare the interest rate, fees and APR between the loan options. Some things to look out for are prepayment penalties and automatic rollovers. It’s also a good idea to check a loan's term and payment schedule beforehand.
Terms on online loans from RISE last for two years max. A customer receives a lump sum into their checking account and is required to repay the loan in regular installments, typically bi-weekly. Online loans usually have fixed interest rates, and the repayment on an online loan is based on the balance and interest rate. Interest rates on online loans vary according to a lender’s policies. In 2016, rates for loans ranged anywhere from 40 % up to over 200%.
There are many reputable lenders of online loans for customers with all kinds of credit scores. However, those seeking an online loan should watch out for lenders advertising online loans for bad credit or loans with no credit check. These kinds of online loans may have higher interest rates and unusual repayment terms or penalties.
Applying for an online loan can be quick, simple and with certain lenders, completely secure. Applicants for online loans must complete an application and show proof of an active checking account. Underwriting is completed by underwriters and automated systems, and the applicant is notified in writing of the decision to approve or decline the loan. In some cases, online loan customers receive the funds directly into their accounts as soon as next business day.*