Four Tips on How to Apply for Online Personal Loans
Online personal loans can be a miracle when you urgently need some money to cover some immediate expenses. It is important not to be rash and take out the loan with just any online lender that you come across without doing research. This can cause you an expensive mistake, for example, the loan you sign up rashly may have high interest rate and fees.
After you sign up, you cannot reject the loan anymore and will be under the obligation of paying back until the end of the loan term. The following are some tips you can follow when applying for an online personal loan.
1. Prepare Income Proof and Identity Documentation
Before applying for Northcash loans , you must first prepare your proof of income. The proof of income can be a pay stub for people who work under an employer or a statement of your bank savings account for self employed people. Basically, you should provide proof of any sources where you are deriving the income from. You also have to gather personal identification documents such as state issued ID, SSN, driver license or other types of identification card.
After you have prepared your income and identity documentations, you can start doing research for the online personal loans. There are a lot of scam lenders that are not licensed. Scam lenders will sell your information to the third party. You will know whether the lender is scam by looking for the SSL certificate on the browser. The lender site should be protected with at least 128 bit SSL encryption so that your information is not easily accessible by the hacker.
Check the Online Personal Loans Lender’s Reputation
Besides, you should look up for the online lender at the Better Business Bureau (BBB) site. The lender should have A+ rating on the BBB and not have any complaint from other customers. You can also conduct a research on the internet such as visit forum and reviews site to see if the company has a good reputation. If the lender has a lot of complaints, you should continue your research and look for another lender.
Get Pre-approved to Find out and Compare the Interest Rate
After you have chosen a lender, you must check the interest rate. The interest rate is different for every applicant as it is determined based on many factors like your credit profile. If you have a good payment history record, you can expect to receive a low interest rate from the lender. To know the estimate interest rate, you must submit the application form on the lender site to get pre-approved first. When filling out the application form, make sure you enter the appropriate information in all the fields and not leave any field blank.
Filling the application form with accurate information can help you to quickly get pre-approved for the loan without any delay. It will not hurt your credit score when you submit the application form for pre-approval. After they provide you with the estimate interest rate, you can take a calculator and calculate how much you will pay back in total after adding the interest fee. In this way, you will plan on how to arrange your budget and pay back the amount within the loan term. The loan term can be 13 – 18 months depending on how much you can afford to pay back every month.
Check The Fees
Besides, you should check the fees such as late fee for late payment and NSF fees when you send a bounce check because of insufficient funds in your checking account. You should call the lender and ask the representative to clarify all the fees that you must pay. While on the phone, make sure you ask questions for example you can ask if they charge a fee when you pay back the loan early.
You can also ask what steps you can take if you have insufficient funds to cover the repayment amount every month. Some lenders allow you to extend the loan repayment date for a fee. When you get approved for the loan, you should ask them how you will be receiving the funds. Some lenders will ask you to go to a local branch to collect the cash while others will deposit it directly into your bank account.
In conclusion, the key to finding the right online lender for the personal loan is to spend time in doing research meticulously. Once you get approved for the loan, don’t forget to make on time repayment every month. You can send a check or let the amount be deducted from your bank account at the due date.