Over 50% of Americans have taken out personal loans in their lifetime. In the age of technology, the best way to do this is usually online. You can open up Google and have a wealth of options at your fingertips and while this might seem like a good thing, it can actually be dangerous. Not all lenders are created equal, and the last thing you want to do is go with someone shady and end up having to pay a huge amount back quickly. From fast loans in Canada to no credit check loans, here’s what you need to know to find the best online loans. Take these tips on board and you can’t go wrong.
1. Decide How Much You Need
Deciding how much you need is the first and most important thing you should do when taking out an online loan. You don’t want to take more than you need, as you’ll just have to pay extra interest, but you should also make sure you get enough — especially if it’s to pay back something else.
You should also figure out how much you can afford to pay back. There’s no point in taking out a loan if you won’t be able to budget for the monthly payments, as you could just end up drowning in trying to afford the price tag each month.
You should also consider your credit score, as this will be a huge factor in how much many companies will be willing to let you borrow — and may even affect whether they’re willing to let you borrow at all. If you have a low credit score, consider looking at companies that don’t perform a credit check (which will also avoid hard inquiries on your report0.
Once you have an idea of how much you need and how much you can realistically afford to pay back each month, it’s time to look at actual companies.
2. Check Out Companies
Now, it’s time to start compiling a list of places that might potentially let you borrow. Get searching on Google and write down a list of places that seem like they might be able to give you what you need.
Once you’ve done that, it’s time to make sure you get a loan from a legitimate and trustworthy place.
There are many sites online that offer reviews and accounts of whether this company treated its customers well. Head to TrustPilot or simply type the company name into Google to get many accounts of past experiences.
While studies have found that people heed negative reviews more than positive, you should check out both sides to get a clear picture of the company. If there are a couple of negative reviews amongst a sea of positive, that company is more than likely trustworthy. However, if they have a low rating, it’s time to look elsewhere.
Make sure you also read the company’s website. They should seem friendly and professional as well as have an accessible and clean website with their contact information readily available.
3. Compare Quotes
Many people can prequalify for loans which is very handy, as this will allow you to compare rates. Even if you’re not going to go with any of these rates, prequalifying will give you a good idea of what lenders are likely to give you.
It will also give you a good idea of if you need to find a no credit check loan, as many of your prequalifying attempts may be rejected if you have a low credit score.
4. Compare Costs and Read the Terms
Comparing the total costs of each company is also important. What are the interest rates? How much do they expect you to pay back each month?
If every company is giving you a similar quote that you can’t afford, it may just be that your expectations are too high. However, there’s no harm in trying a few different places to see if there’s a deal that suits you.
You should also make sure that you understand the terms of the contract you’re signing. While most people will give any contract a quick glance and decide that’s good enough for them, finances are important and you should really take the time to sit down and read yours.
This will ensure you know what you’re signing up for.
5. Check the Time
If you need the loan urgently, you’ll have to ask how quickly they can get you the loan. Some places may take days or even weeks to approve an application and get the money into your bank account, whereas places like King Cash (us!) can get you it in as little as a few hours.
This is something many people fail to check, but it’s important. If you owe a debt due tomorrow and a lender can’t get the money to you until next week, there might be no point in going with them by the time late fees are added.
Check Out Lenders With Care
Who you get a loan from is just as important as anything else about an online loan. While you might be in a rush to get the money into your account, take an hour or two and really research lenders to ensure you’re going with the best one possible.
Need a loan that’s processed within an hour? KingCash is an alternative to traditional financial institutions that can get that money in your account quicker than they usually do. Contact us at kingcash.ca and let’s see what we can do for you.
