Online services are convenient for many people such as there is no need for them to search for reliable sources of assistance outside. With the click of a button, you can assess varieties of services such as shopping or order a pizza. Similarly, there are also online loans providers that provide instant loans without much hustle. Conventional lenders have a long process where a customer must apply for a loan and wait for days if not weeks or months for the loan to be approved. In most instances, banks and other conventional credit facilities will turn down your request if you have a bad credit history. However, online lenders offer guaranteed emergency loans without requiring reviews of your bad credit.
The Advantages of the Facilities
It is important to understand that online lending has its good side as well as dark side depending on the position you are in. Thus, it is highly advisable to analyze your situation thoroughly and make your decision thoughtfully. Here you can find some of the most outstanding advantages:
- It is a convenient process. You are provided with personal loans fast cash without having to walk to the creditors. You also don’t have to wait for days for your loan can be processed. Actually, most of the online lenders will take a day or two to process your loan; others will deliver your loan instantly.
- Immediate feedback. You do not have to wait for the feedback for days on whether you are eligible or not. In case a lender declines your request, you can immediately apply from others alternatives.
- Minimum requirements. One of the reasons that make a payday loan easily accessible is the minimum requirements needed by your creditors. Basically, you are just required to provide some basic information such as bank account, income source, residence among other few information. In comparison with the conventional creditor who will perform due diligence on your credit history as well as ascertain the information you provide. So, if you have a bad credit background, the online lender will still provide you with guaranteed small loans as far as you prove your payment capabilities.
- No contingent products. An online lender will give you the package you ordered. For instance, if you are looking for fast cash student loans, you can receive them immediately. This is contrary to credit institutions such as banks which will tend to persuade you on additional products.
Drawbacks of Online Guaranteed Personal Loans
Online lending also has some drawbacks that you need to consider when choosing them. Whether the advantages or the disadvantages surpass one another, you are the one to make a choice depending on your situation. Here you can read regarding the drawbacks.
- High-interest rates. One of the major disadvantages of online creditors is the high-interest rates they charge on their loans. If you compare the time of repayment and the interest rate of federal loans or banks loans with online loans, you will realize that payday loans have very high rates of interest.
- High fees and limitations. Online lenders have high and extra charging fees which make the loans expensive. Also, the loans are limited according to the lender decision. For example, you may request a loan of $600 and the lender decide to allocate you a loan of $450. This leaves you with a deficit of $150. This is notwithstanding the fact you will pay the loan despite the shortfall.
- Sharing personal information online. Not everyone finds it satisfying when sharing their personal information online. However, if you have no other alternative, you will have to share the information despite the risk of the information being shared with third parties as well as the challenge of hacking. Many online lending platforms have information privacy policies that conform with federal laws and provide assurances not share the information from unauthorized parties.
Available Alternatives to Quick Guaranteed Loans
If you are in dire need of an urgent loan, there are other quick avenues you can still use without exposing yourself to unnecessary risks. Here are some alternatives that you can use.
- Borrow a loan from family or relatives. Those who are close to you can help without asking for interest and ridiculous fees attached on online lenders. However, you must ensure that you don’t become over-reliance to avoid denting your relationship. You should also ensure that you repay back all of the money.
- Employment advance. Most employers will give paycheck advance to their employees when asked for. However, when considering to ask a paycheck in advance, you must keep in mind that your due paycheck will be short of the amount that you took. Therefore, you should make proper arrangement to compensate for the deficit on your budget.
- Alternatively, withdraw from your credit card. In case you are credit card holder, you can withdraw some cash from the card so as to cater for an emergency that requires money urgently. It is a better option than seeking high-risk money from predatory lending student loans who will charge you exorbitant interest rates and fees. Typically, credit cards charge usually have low APR than online lenders.
Are Bad Credit Guaranteed Personal Loans Avoidable?
You may ask yourself, ‘How do I mitigate my financial emergency without falling for the online guaranteed loans?’ In the short run, you may consider the above alternatives. Though these options offer you emergency relieve, you should find a long-term emergency mitigation mechanism that will not hurt your reputation, relationship as well as your income. You can achieve this by setting an emergency fund where you set aside some few dollars every time you receive your paycheck. Financial emergencies are not a daily occurrence not unless you have no income at all. Therefore, during the times you have no excess expenditures you can set aside some money that you will use when they occur. In addition to that, you can minimize your expenses by cutting unnecessary spending such as reducing your entertainment and travel expenses. This can help you save and eventually avoid the quick loans guaranteed by online lenders as well as alternative loans altogether.