While many loans can take some time for approval, the process of doing a credit check is really quite straightforward. Many providers are therefore now able to offer quick online decision loans which bypass the longer decision process familiar to borrowers of the past.
If you’re looking for a quick loan to answer your immediate borrowing needs, an online decision loan might be the way to go. Read our top three-step checklist for choosing online decision loans to make sure you get the right online loan for your circumstances.
1. Compare a range of online decision loans
There are many loan providers who will be able to take you through the process of applying for a loan online, quickly and efficiently, and give you a yes or no answer online so that you do not have the hassle of speaking to call centres or visiting the lender in person, and you do not have to to wait to find out whether you are eligible.
Each of these providers will have different terms for their loan. The APRs might be dramatically different depending on which you choose, so it’s very important to look around and not just opt for the first offer you find. You can compare online decision loans quickly and simply by checking deals on a price comparison website.
2. Watch out for extra charges
Unfortunately, choosing your online decision loan deal is not as simple and finding the best APR for the time you need to pay off the loan. Along with comparing APRs, you will also need to check and compare other charges, and calculate which deal is best when you include these other charges.
While online decision loans will usually provide you with an instant decision, that does not necessarily mean you will receive your money instantly as well. But you need to be aware that if you opt for delivery of the cash by a courier, to speed up the process, this will usually carry an additional fee of perhaps thirty to forty pounds which you need to factor into your costs. Usually it works out more sensible not to opt for courier delivery if possible.
You also need to be very wary of payment holiday. While some lenders will allow you to take one or two months off repaying the loan at first if you choose to, these payment holidays will normally increase the overall cost of the loan and increase your monthly payments, as well.
3. Check your credit rating
Before applying for an online loan, it is a good idea to check your credit rating to find out whether you are likely to be approved. If your credit report has errors then you can ask to get these amended.
If you have a poor credit rating and your online decision loan application comes back rejected, this can further damage your credit rating. While you might be lucky, the risks involved with applying for too many loans mean that a better option might be a loan with a higher interest rate, or a secured loan, rather than an online decision loan.