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Taking control / 22nd Feburary 2021

Are Digital Loans the Way of the Future?

Loan applicant typing happily on laptop

Applying for a loan has never been easier. Numerous lending companies offer online personal loansthat provide fast funding and other modern conveniences that a typical brick-and-mortar bank can’t. But the question remains—are digital loans truly better than face-to-face applications with a lender at a bank? Let’s discuss the benefits of online personal loans and what sets them apart from traditional lenders. To learn more, read on.

Pre-qualification is easy

Applying for an online loan is convenient for anyone. With traditional bank loans, clients who have a pre-existing relationship with the lender are prioritised and are often offered higher approval odds, lower interest rates, and more favourable terms. With an online loan, you don’t need to have a pre-existing loan with online lenders to be qualified for a loan. Plus, submitting for pre-approval will not, in any way, affect your credit score.

Application process is convenient

Lenders with an online presence can process your loan application quickly. When applying with traditional banks it may take a while to get a response, Online lenders can normally review your credit standing and financial situation quickly and cans can quickly decide whether you can make timely repayments, how much you can borrow, and what your payments will be.

And since you’re applying online, you can complete your application at any time that suits you. You can leave the application open and come back to it if you feel you need to.

Better approval chances

With traditional banks, it’s easier to get a loan when you’ve got great credit. However, if you’re still building your credit score or have been through tight financial circumstances recently, it may be harder to get approval. Many online lenders will use alternative information to evaluate creditworthiness, such as the debt-to-income ratio, or even the data from your social networks. This can make it easier for you to get a loan if you haven’t had the chance to build a credit score yet.

Quick funding

If you need cash quickly, applying online may be your best bet. One of the perks of online loans is how fast they can supply the funds after approval. After all, online loans work 24/7 thanks too the internet. Reputable lenders can credit the loan to your account the same day you apply, or the following business day.

Most online loans are unsecured

With online unsecured loans, you don’t have to pledge any collateral to get approved. This can make a safer borrowing option for those of you who don’t want to borrow against your assets. If you fail to repay an unsecured loan, your credit score will drop, but none of your valuable property will get repossessed.

Are digital loans the best option?

Banks provide valuable services, but in most cases, digital loans are quicker and more convenient. Regardless of whether you’re applying for a loan from an online lender or a bank branch, the best loan is the one that matches your needs and accommodates your situation. To get the very best loan you can, you’ll need to shop around, and there’s no harm in including reputable online lenders in your search.

Apply for fast and easy loans with MoneyShop!

At MoneyShop, we offer you quick and ethical loan options with competitive rates, fair terms, and features that match your needs. We provide car loans, emergency loans, and unsecured personal loans to help make financing more accessible to those who need it. Looking for fast cash? Apply for a loan online today!