Consumer loans, quick loans, fast loans, online loans – dear child has many names. The internet is packed with various fast loan options and it can be a chore to find the different terms, costs, interest rates and fees.
Common to these loans is that they can be applied very quickly and that the application process is easy and smooth. Also, you should not meet with the loan provider as everything is online. It can feel nice in a situation where you may feel a bit devoid because you need to borrow money.
Benefits of the fast online consumer loans
One of the benefits of these online loans is precisely the speed. It goes incredibly fast from application, to approval and to the money in your account. You fill out an application form online and a few days later you have a loan offer where you can see the terms, interest rates, fees and so on for the loan you have applied for.
Another advantage is that you do not have to provide collateral for the loan, which also helps to smooth the process – there is only one agreement that you have to sign: the loan agreement. You should not ask all your friends to bail or mortgage your house or car. You borrow the money on your smooth face and the vast majority are actually approved to take out loans.
Finally, it is nice for most people not to be held accountable or explain why they have to borrow money. Thus, you do not have to tell what the money should be used for, why you can not just pay with your own money, nor when to spend the money. The loan provider reviews your application alone and makes a credit assessment of you.
Are there any downsides to these consumer loans?
There are rarely benefits without disadvantages. And one of the drawbacks is that online consumer loans are relatively expensive compared to, for example, bank loans.
Online consumer loans are thus aimed at the acute situation – ie where you have received an unforeseen bill or similar. You can consider the loan as a kind of emergency loan that you only take up where needed and where it should go very quickly.
While it may be tempting to borrow more money than you need, you should not do so with these loans. You need to be able to pay back relatively quickly so you don’t end up throwing too much money into interest and fees.
Another disadvantage of these consumer loans
Is also that it can be difficult to figure out the total annual cost as a percentage, as it can be difficult to repay the loan ahead of time.
You should always compare the many different loan providers’ offers on consumer loans and their individual terms before making the final decision.
There can be a lot of money to be made in doing the processing thoroughly and obtaining offers from various loan companies to get the best and cheapest loan.