Money problems happen to all of us at one time or another. No matter our best intentions and efforts, the time may come when you just can’t pay your bills. Or, you struggle to make ends meet. You may live paycheck to paycheck. Or, an emergency expenditure may wipe out your savings. Being short on cash is a problem that many Americans face, and many turn to online sites that provide fast loans to make it through.
The Best Quick Loan Sites
The American public has accumulated over $420 billion in credit card debts – or about $7,000 per person. That statistic almost sounds manageable when you consider the amount of unsecured consumer debt in the United States. According to the Federal Reserve, Americans collectively own about $2.4 trillion in consumer debt.
One way to get out of a debt hole is to apply for a loan. Yet, the traditional loan process can take weeks, months, and even years to process. If you have a low credit score, you might need a co-signer to qualify. The traditional loan application process can be exhaustively prohibitive at the exact time you need money the most. One option that you may consider is an online loan.
What Is An Online Loan?
Private financial companies or individuals, typically offer loans through an online application process. Unlike a traditional loan application, the online loan application process is quick. It might require information such as your name, birthday, Social Security number, address, employment information, and bank account details. Your credit score may not even be a consideration.
You could be approved within hours or days after an evaluation process. Then, you will be emailed a loan offer with terms, repayment schedule information, and a contract. Depending on your employment status and bank account details, loan amounts can range from a few hundred dollars to a few thousand dollars. Also, since this is mostly a wholly online process, the loan amount will be automatically deposited into your bank account.
What to Look For
Nothing in life is free. While online loans are fast and convenient, they come with conditions. For one thing, interest rates for online loans can be as high as 36%. Most online loan businesses should at least ask for a credit score or require employment for evaluation. Otherwise, it may be a scam. Or, they will charge exorbitant interest fees. Some online lenders may charge as much as 1,500% in interest. Stay away from such lenders.
Also, when it is time to pay the loan back, the money will automatically be deducted from your bank account in amounts and on a schedule predetermined by the contract. It is imperative that you are gainfully employed and have funds in your bank account to cover the withdrawals. Otherwise, you could dig yourself an even deeper debt hole and suffer excessive overdraft fees.
Best Online Loan Companies
An online loan company can be a private company or a private lender lending through a third-party website. The average interest rate could be as low as 4% or as high as 36%. Any higher is a good sign of a predatory lender. Some of the more positively reviewed and trusted online lenders include:
- Best Egg
- UpStart Loans
- Lending Tree
- Lending Club
- Loan Depot
Last Resort Measure
Only apply for an online loan if you are employed and can pay it back. Make sure you are aware of the loan terms, interest rate, and repayment schedule. An online loan should be a last resort measure for you to consider. It can be helpful if you find yourself out of options.