What are online loans?
Online loans are simply personal loans that you can get without going to a bank or credit union. Easy online loans usually don’t even require you to speak to a loan officer.
You can do all of the following online:
- Compare rates, loan amounts and terms
- Submit an application
- Get pre-approved for a loan
- Have the money deposited directly into your bank account
Loans with a fully digital application process are regularly offered by online-only lenders who do not have physical bank branches. But a growing number of traditional banks and credit unions are also offering quick loan options that don’t require in-person or phone contact. These lenders want to compete for your business and they know that many people prefer to perform financial tasks on the Internet.
What can online loans be used for?
Online loans are no different from other personal loans in terms of the use of money. You can usually use the funds for anything you want. This could include paying for home repairs, financing large purchases, or consolidating your debt.
What are the easiest online loans to get?
If you are looking for easy loans online, you will want to research the best personal loans with a fully digital application process. Here are some of our top lenders who offer the easiest online application processes:
Some of these loans, like those issued by LightStream or SoFi, require good credit. They are easy to apply because they streamline the process. They allow you to complete all the steps to get a loan without going to a bank branch or speaking with a customer service representative. But they are not necessarily easy to to qualify for.
Others, like Avant, charge a higher interest rate but grant loans even to borrowers with poor credit scores. You can easily apply and eligible even if you do not have a perfect financial history.
Can I Get a Loan Online With Bad Credit?
Yes, there are a number of online lenders that cater specifically to borrowers with bad credit. They allow you to get a personal loan with bad credit.
You will usually need at least a fair to good credit score for a personal loan, even from an online lender. If your credit score isn’t perfect, be sure to research multiple loans for fair credit (rather than just applying to the first loan you find) to increase your chances of getting approved.
Here are three steps to finding a loan, regardless of your credit score:
- Shop around with multiple lenders. There is a lot of variation in interest rates from one to another. The more quotes you get, the better your chances of finding a competitive loan deal.
- Apply with a co-signer. Lenders will take into account the credentials of your co-signer as well as your own. As such, you could be approved with a better interest rate.
- Examine get a secured loan. You will need to offer something you own as collateral – a guarantee that you will repay your loan, which could be risky. However, secured loans can also help you build up credit.
Just be sure to read the fine print carefully when shopping for a bad credit loan. Some personal loans for bad credit have bad terms, such as high fees. Be sure to compare interest rates and check the lender’s Better Business Bureau rating or other client reviews to make sure you are dealing with a reputable lender.