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A growing number of Americans are taking out personal loans. This market reached an all-time high in 2018 due to the rising popularity of fintech startups. Nowadays, applying for a loan is easier and more convenient than ever before.
Contrary to popular belief, online personal loans are not just for customers with bad credit.
In fact, most consumers choose this option over traditional loans for its flexibility and convenience. Why spend hours waiting in line when you can get the money you need with a few clicks?
Whether you want to start a small business, pay utility bills or remodel your home, consider taking out a personal loan. The application process takes minutes, and you could receive the money in as little as one day.
Still not convinced? Check out these surprising benefits of online personal loans!
Boost Your Credit Score
Online loans can help your credit score as long as you stay on track with your payments.
If you spread out your debt in multiple forms like auto and personal loans, you’ll build up or improve your credit. This will later allow you to borrow more money for large-scale projects, such as buying a house.
Online personal loans have more flexible terms compared to traditional loans. The application process is more straightforward too. Most times, all you need to take out a loan is an ID card or driver’s license an proof of income.
Eligibility requirements vary from one bank or financial institution to another.
In general, applicants must be at least 18 years old and have an active U.S. bank account. Also, it’s necessary to be a U.S. citizen.
Traditional loans, on the other hand, require piles of paperwork. Not to mention the long waiting lines and countless phone calls to the bank, which can be a major turnoff for most people.
Enjoy Greater Freedom
One of the biggest advantages of online personal loans is that you can use the money for whatever you need.
Want to start your own business? An online loan can make everything a lot easier.
Are you facing a medical emergency? This kind of loan can be a lifesaver.
Perhaps you have a less-than-stellar credit score? You’ll more likely to obtain an online loan than a traditional loan.
How much you can borrow depends on your income. The best part is that you can use the loan to consolidate debt, pay your bills, travel, renovate your home, and so on.
Change Your Life for the Better with Online Personal Loans
These are just a few of the many benefits of online personal loans. This financial service offers several perks over traditional loans, including fast approval, flexible repayment terms, and minimum documentation.
Another advantage is that most banks offering online loans are customer-friendly and ready to answer any questions you may have. Their websites provide helpful information, how-to-guides, blog posts, FAQs and other resources to guide you through the process.
Traditional banks, by contrast, take days or weeks to answer your questions and tend to make everything a lot more confusing.
When used responsibly, online personal loans can change your life for the better. If you’re ready to take charge of your finances, browse our other blog posts for more tips and resources!