Online loan – your favorite go-to or another no-no?
With all of life’s twists and turns, there comes a time in many people’s lives when they consider taking out a loan. There are numerous factors to consider when entering into an agreement to borrow money. When time is of the utmost essence, it might be best to look into an online loan to get the quickest service.
There are many sound motivations for prioritizing simplicity and speed, such as an emergency expense, wanting to pay off a minor debt, or something essential to daily life, like paying a utility bill when money is stretched a bit too tight during a month with high heating costs. Although quick loans are not usually the best option if you don’t need the money urgently, they can be real lifesavers in certain circumstances.
Online loans – like Saldodipje’s mini and plus loans – offer an efficient way to borrow money quickly. When you borrow money online, you save the time it would normally take to visit the financial institution personally, as well as wait in lines and speak with a financial advisor. When you apply online for a loan with Saldodipje, all you need to do is to perform the identification process, fill out the application form and verify your bank account – and voilà – you can get the funds you need within 24 hours. When you borrow money online with Saldodipje, there are also no difficult contracts or complicated procedures.
The top 3 advantages of online loans
It is advantageous to weigh both the pros and cons of borrowing money online so that you can get a clear picture of whether an online loan is the best option for your specific situation.
To start off, let’s take a closer look at the advantages that online loans generally offer:
- Flexible repayment plans/options
- No requirement for collateral
- Increasingly higher maximums
Flexible repayment schedules base your monthly payment fee on the size of your family and your monthly salary. This flexibility allows the loan repayment plan to be more accommodating to your unique situation and helps you weather times when your pocketbook is stretched. This way, you can feel more at ease about meeting the requirements of your scheduled payments and enjoy a hassle-free way to borrow money online.
Since most online loans are unsecured and do not require collateral, it can make things easier for those of us who might not have something valuable to offer as a security against failure to repay the loan on time.
What’s more, increasingly higher maximums mean that you can have what’s known as a ‘growing credit score.’ In this situation, as the borrower continues to pay his dues on time, his credit score is raised accordingly. If, for example, you are borrowing money online for the very first time, you are likely to have a lower amount for the maximum funds you are allowed to borrow. However, if you are diligent about making all your payments on time, you will gradually be able to borrow higher amounts of money.
The top 3 disadvantages of online loans
Now that we have gone through some of the advantages of online loans, let’s review the potential disadvantages. Some of the cons include:
- Lower maximum loan amount
- Higher interest rate
- More susceptible to scams, data hacking and phishing
While the growing credit score is one of the advantages of an online loan, the flip side of the coin is that first-time borrowers may not be able to get an amount that is high enough to cover their needs directly. The maximum loan amount tends to be relatively low for first-time borrowers who have not yet established a good standing by making their loan payments on time.
Without the support of collateral as back-up, unsecured loans also tend to have lofty interest rates. While online loans are typically faster and have fewer requirements than traditional bank loans, they can leave you with a significantly higher repayment.
Another downside to online loans is that they are more prone to data hacking and scams since the entire process is completely online. To prevent personal loan scams and avoid having your sensitive personal information fall into unknown hands, it is essential that you check out the website or app where you will be taking out your loan. It is highly advisable to make sure that the lender is registered and is a reliable, trustworthy source.
When to get an online loan
Borrowing money online can be ideal for a quick fix in situations when you might require a relatively small amount quickly. In a nutshell, borrowing money online offers the benefits of speed and simplicity. However, if you are not in such a hurry to get the money, other types of loans usually offer better terms and conditions.
In certain situations, an online loan would not be a practical option to consider. For example, if you need a substantial amount of financing – as in the case of purchasing a new car or remodelling your home – then chances are that borrowing money online would not give you an amount sufficient to cover your expenses.
Although online loans are usually most fitting for sudden expenses that are not too high, there are some financial institutions that offer all kinds of loans online. So, no matter whether you need a personal loan, a car loan, a student loan, a business loan, a mortgage, or a pensioner loan, you can find money to borrow online and get immediate approval. Some of these offers are quite attractive, requiring little in the way of collateral, paperwork, credit checks or transfer fees.
Of course, to be on the safe side, it is critical that you read all the fine print if a deal seems too good to be true. Great deals do exist, and if you are in doubt, it can be helpful to consult a loan adviser to help you navigate the different types of offers for loans online. A great place to get reliable information is with Saldodipje – a trusted lender and part of the Multitude Group who has over 2 million satisfied customers worldwide.
5 reasons you should not take out a personal loan online
Even though there are possibilities for superb loans online, no matter how attractive an offer may seem, it may just not be the best decision. While personal online loans deliver undeniable benefits, there are certain situations where it might be better to delay taking out a loan. Read all about Saldodipje’s plus loans in the Netherlands here – where you can receive up to €1800 and get approved within minutes.
Here are five important reasons why you should consider waiting to sign an agreement for that online loan you have been looking at:
- You are confusing desires and needs.
- You need to pay off basic living costs.
- You plan to invest the borrowed funds.
- You are unsure you can adhere to the repayment obligations.
- You have sufficient collateral for a secured loan.
The distinction between what we need and what we want can sometimes be a bit blurry. That dreamy getaway you have been fantasizing about might seem essential in the middle of winter when you are tired of the everyday grind, but nevertheless, it is still a luxury and not a requirement. You might be better off skipping the online loan and designing a fun “staycation” at home instead.
Another reason to hold off is if you are using the loan to cover basic living expenses. While these certainly might fall under the category of requirements, it can also be a sign of more serious financial difficulty. And, if this is the case, an online loan might only make matters worse in the long run. If you want to read up on budgeting and managing your personal accounts, take a look at our blog, all tips to keep your finances in order.
Whenever you are ready to take the next step …
We invite you to chat with us online or visit Saldodipje’s Help Centre. We are more than happy to look into your particular situation to see whether an online loan might be an advantage for you. No matter what your financial situation looks like at the moment, we can offer you expert advice on what your best next step should be. We are here, ready to help you with any questions you might have.
FAQ
• What documentation do I need to apply for an online loan?
Basic requirements typically include your passport or national identity card for identification purposes.
• Do I ever need to visit the bank with an online loan?
No, online loans can be managed completely over the internet.
• What are the main advantages of an online loan?
Online loans are generally the fastest, simplest, and most convenient way to get a loan.