Whether you need to pay the rent and are missing a couple of hundred dollars or are need a few more bucks to pay for a product that you’ve already ordered, not being able to go to the bank to borrow the sum that you need can complicate things. To make things more difficult, most banks have a ton of hidden charges that make it difficult to repay even the smallest payday loans.
This having been said, there are ways to get the money that you need without ever having to go to a bank, or an ATM provided that you need it for online payments. A large number of online platforms are offering short-term loans to those interested, without requesting the large amount of personal and financial data that banks do.
What is an online short-term loan?
Online companies that offer short-term loans usually restrict the maximum amount of money that you can borrow to $1500. You can borrow more money from them, but you will need to fulfill certain criteria regarding income and the stability of your current job.
Short-term loans typically have slightly higher interest rates when compared with the ones offered by banks, however, having your request approved takes far less time and the money can reach you in a couple of days, at most. You will also never have to go to any meetings in order to convince the company’s representatives that you’re eligible for their services.
The money that you borrow can be used for any purpose that you want. There are no restrictions placed on what you can do with the money and it is possible even to use it in order to make the monthly mortgage payment or to buy an electronic device.
One thing that you must keep in mind when it comes to these loans is the fact that you’ve got to pay them back in around 30 days. Furthermore, although you can borrow the money for longer, the interest will grow considerably if you want the loan for more than 6 months.
Using an online service to borrow money
There are hundreds of services that offer US citizens the ability to borrow small amounts of money for limited periods of time. Most of these even do so without performing a credit score check, so you can use them to get some money regardless of what your relationship with the bank may be.
That makes these services great is the fact that it is incredibly easy to apply for a loan. For the most part, you only have to fill out a form in which you’ve got to specify what amount of money you need and to attach a couple of personal documents to it.
The documents that are usually needed are:
- Proof of residence: This can be anything from a utility bill to a house rental agreement;
- Proof of income: Bank statements, work contracts, or other documentation that shows that you’ve got a monthly source of income;
- Proof of identity: A photo of your ID;
You may also be required to submit your credit score. Keep in mind that the companies that offer online loans do not perform credit score checks if you borrow a small amount of money. This information is only used for marketing purposes.
Install the app and make things easier
If you’re in a hurry and want to streamline the loan request process or plan to use a specific service regularly, look for one that offers a smartphone app. If the website does not specify this information, check the App Store or the Play Store.
Most online money-lending platforms offer apps that not only make it easy to apply for a loan but also make it easier to keep track of how much money you borrow and when you have to pay it back. These are always free and should be compatible with any type of Android or iOS phone and tablet, also enabling you to synchronize your personal details between them.
You can use the app to fill in the loan request and to submit all the photographed documents that are needed to create a client account. You will also be able to use it in order to choose which account you want to transfer the money to.
Not being able to use the services of a bank, regardless of the reason, can make life difficult, especially when you have to pay an unexpected medical bill or a larger than usual utility bill. Online money lending services are heavily regulated by the government, making them just as safe as banks.
This having been said, what makes them unique is the fact that using their services will not have an impact on your credit score. It’s easy to apply for a loan, and in some cases, you may not even have to have a stable source of income in order to borrow money.