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Things You Need to Know before Applying an Online Loan

admin | 14 Dec 2021

If you have only lived at your current address for a short period, you will usually need to supply your past address, as your lender will require these to perform a thorough credit history check on you. 

It's essential to check your bank's online loan calculators to help you decide how much you want to apply for. It's a good idea only to borrow what you need over a comfortable period for you to repay. The more you borrow and the longer you take to pay it off, the more you will likely pay interest charges. More significant loan amounts often carry significantly lower interest charges, so borrowing more can offer a better APR. However, it will usually still cost you more over the entire life of the loan.

Before your meeting, also think about your regular outgoings. You will be asked how much you spend on various things, like rent and mortgage repayments, groceries and bills. It's sometimes difficult to remember these costs when you' re on the spot, so take a look through your bank statement in advance and work these costs out, so you have them to hand.
 

When applying for online loans, what will I need?

The number of documents and the amount of information you will be required to provide to an online lender will depend on the type of loan you are applying for and the amount of money you want to borrow. 

When you apply for a personal bank loan online, you will need to provide all the same information as applying in person. The application process usually involves filling in an online form and sending in documents to support the information you have entered.

Applying for a payday loan online can be a much simpler exercise, and you will rarely have to send off masses of documentation to support your application.

Check your credit rating in advance

If you take the time to sign up to a credit rating agency such as Experian, you will be able to take a look at your own credit file before applying for a loan. This is something we can all do to empower ourselves financially. If your credit rating needs work, it's advisable to take measures to increase it before you apply for credit, as applying and being turned down can lead to further damage to your credit score.

Use 'soft search' tools

Many online loan providers and banks may offer you the chance to check the likelihood of you being accepted for a loan through a tool using a ' soft search' approach. These tools can take a cursory look at your credit report and find loans that might be suitable for you without carrying out a full credit check. These searches can take place without your credit score being affected and are therefore a great way to minimise the risk of being turned down when applying for a loan.

Is it quicker to apply for payday loans online?

Yes, applying for an online payday loan or any short-term low-value loan online will usually be relatively quick and simple.

You will be asked for:

  • Personal details to confirm your identity, your age, your address and your nationality.
  • Whether you own your own home or if you are renting and the details of all your regular outgoings and expenses.
  • Bank details so that your funds can be deposited into your account and sometimes to allow for continuous payment authority to be set up
  • Employment details to confirm your employment status and income
  • Details of your payday and how much you are likely to receive

 

 

If you are really in need of quick cash for personal expenses, make an online application with My Cash Online today.