Best Online Loan Companies Compared
Choose from the best online loan providers in the United Kingdom today, or learn more about online loans below.
What is an online loan?
In the age of the Internet, almost anything that you used to have to go to a store to get, is now available online. Credit is no exception. As with most online products, the benefits include convenience – you can do it from your own home or even on the move – and speed – apply in less than an hour, have approved money in minutes.
Like most things that are fast an convenient, they do come with a higher cost, but depending on your situation, the cost of the loan may be considerably cheaper than the cost of waiting for another source of cash. You can browse other types of personal loans here.
Online loans usually require the borrower to have a regular job for which you receive a paycheque or direct deposit, you’ll need a bank account, and you’ll need to be a UK citizen 18 years of age or older. This is because all reputable lenders in the UK have a responsibility to lend money only to people with the means to repay it.
The comparisons here at Best Loans dot net, are provided by our authors but you should always do your own research.
Forget to send a payment and realise it was due today? Lying awake at night trying to remember how much there is left to pay on your loan? Don’t worry. The services are usually available 24 hours a day, and you can apply for – and manage – your loans from your own home.
Use The Simple Monthly Repayment Plans
Repayment of your online loan is also flexible. Payments can be set up to go automatically from your bank account or debit card on a set date each month, or you can opt to send the payments through your bank account manually each month.
Which method is best?
The automatic method is best of you know the money will be there and don’t want to risk missing a payment. Late or missing payments can incur fees and penalties, or even result in a default on the loan, if repeated. Any of these problems can cause credit rating deductions, making it more difficult for you to get loans late on, or may in some cases reduce your chance of getting a job. The majority of online companies are providing payday or instalment types of loans.
However, if your payday varies slightly and you wish to ensure it has arrived before sending your online loan payment, then the manual method is better. This will avoid an unplanned overdraft situation with your bank, and avoid fees and penalties that might occur as a result. Credit rating can be adversely affected by unplanned overdraft, and banks are very regular in reporting these mistakes in managing your funds. Be sure to get the payment in to the online lender on time, however, or the same penalties and credit damage may occur.
Can you get a home repair loan online?
If you need emergency repairs done to your home, but don’t have the cash on hand, an online loan may be a practical solution.
Some problems are much cheaper if dealt with immediately.
A leaking roof may start out as an unsightly stain on a ceiling, but can quickly result in mould, structural damage, and a worsening of the leak. Likewise, a leaky pipe can cause structural and electrical problems, increasing the cost of repairs and potentially endangering those living in your home. They are a great way of getting a home improvement loan.
The interest and fees paid on an online loan may be considerably less than the extra damage that may occur from leaving a home repair to worsen. If this is the case, then a quick solution via an online loan is the cheaper way to go.
What is a signature loan?
Signature loans are a convenient way to get needed cash from the comfort and privacy of your own home. If approved, cash can be deposited directly into your bank account within minutes after approval.
Payments are made by direct payment using your debit card or DDI. In most cases, there are no penalty fees for paying off online loans early, so if you come into some unexpected cash – or simply want to give yourself more time to repay the loan than you think you’ll need – you won’t be paying extra for it.
The decision-making process generally takes under an hour, and if successful, the money can be in your account minutes after approval.
What are the benefits of an online loan?
Online loans can be more expensive than conventional credit, but there are several benefits as well. They are quick and low-hassle. You can do it all from home, with no need to visit a bank or talk to a loans officer.
You can borrow from a small amount up to a couple of thousand pounds.
If you need cash to solve a problem that may quickly worsen, a quick online loan may be the most cost-effective solution.