Online Lending Services
There’s nothing wrong with getting a loan from your local bank. Local branch banks have been around for hundreds of years. The problem is that they have the costs associated with a brick-and-mortar operation. Before the Internet, these costs were a normal part of doing business. However, with Internet banks, you don’t need to go into a physical location to get a loan. Everything is handled right online.
Reputable Online Lending Brands
Ally Bank, ING Direct, Bank of Internet USA, PerkStreet, Connexus Credit Union, Prosper and of course Lending Club are all trusted names in the online lending industry. The sign up process is very easy, and can be completed in a matter of minuted. Because you’re not filling out paperwork, you’re also saving yourself space by not having to add more paperwork to your filing cabinet.
Go with a well-known name when doing business online. One of the criticisms of online banking is that you can’t walk in at any time and talk to your banker. While all banks are regulated and FDIC insured, it doesn’t mean that they won’t fail or that they have excellent customer service. The last thing you want to do is get a loan from an Internet bank that turns out to have poor customer service, can’t process your payments on time, and charges you fees for late payments as a result.
What Can You Do With The Money?
Loans that you get online are typically deposited straight into your bank account. This money can e used to pay off high interest debt, student loans, or consolidate several debts into one. By consolidating several high interest debt loans into one loan, you may be able to lower your interest rate, stretch out the payments, and give yourself some breathing room.
The application process for online banks is similar to a loan application for a conventional bank loan. The major difference is that your application is processed online. Because of this, you’ll have to fax, mail, or scan and email all of your documents to the bank. The bank will review your credit score, let you know what documents you need to submit, and then collect any additional information it needs.
Typically, you’ll need to give the bank your most recent pay stub or tax return, your Social Security number, and you may need to provide the bank with a copy of your driver’s license. Any fees that the bank charges for the processing of your application will also have to be submitted though most Internet banks don’t charge fees for loan applications.
Making Your Payments
Before the lender deposits the money into your bank account, you must give the bank your bank’s routing number and your account number. With this information, the bank can then draft your loan payment directly from your checking account. The repayment process is simple and often automated so that you’ll never miss a payment.
Of course, you also have the option of mailing in your payment with some banks, but there may or may not be an additional fee for this. Likewise, payments handled over the phone with a representative may require that you pay a service fee for convenience.
Not only is it possible to get low fixed rate loans from online lending services, it’s the norm. Internet banks and lending institutions that operate completely over the Internet don’t have the overhead that traditional banks do. In a world where bank fees are trending up, this is one instance where savings really do get passed on to the customer.
Disclaimer: We are an informational site that receives compensation from companies of products we endorse. We are independently owned and the opinions expressed here are our own.