The best personal loans online are the ones that offer the terms that suit your needs. However, you will probably find multiple lenders and many similar products, so how do you decide?
Lenders differ greatly and so do personal loans. Here are some additional factors you should consider before you decide who has the best personal loans online.
Is There a Minimum Credit Score Requirement?
Some of the best personal loans online might not seem so great when you have less than perfect credit. That’s because almost all companies have a minimum credit score requirement.
If you don’t meet their minimums, there’s no point in applying. They won’t grant you credit. Luckily, some companies put less emphasis on your credit and consider other factors too.
Do They Need a Long Employment History?
Of course, lenders are happy to grant you credit when you’ve been with the same employer for years. They believe this proves you’re stable and creditworthy.
But what happens if you’ve moved or changed jobs? Should you be penalized for that? Unfortunately, most lenders won’t even look at your loan application unless you have been at your job for at least a year and sometimes much longer.
Fortunately, some lenders will consider your application if you’ve been working with the same employer for at least three months. Any company that demands a long, uninterrupted work history isn’t offering the best personal loans online.
Will They Perform a Soft or Hard Credit Check?
Some lenders perform a hard credit check when you apply for a personal loan. This appears on your credit file, even if you decide not to borrow through the lender. If you apply through multiple lenders that use hard credit checks, it can negatively impact your credit score.
Lenders that offer the best personal loans online use a soft credit check that does not appear on your credit file. Instead, they consider many factors and grant pre-approval. If you decide to accept their terms, then the details appear on your credit file.
Are They Asking for Proof of Income When You Apply?
Any lender that asks for proof of income before they decide whether they’ll lend to you isn’t offering the best personal loans online. Why should you have to take time out of your busy day to dig up pay stubs or get a letter from your employer when they could turn you down anyway?
Good lenders only ask for proof of income after they’ve pre-approved you and you agree with their terms. Then they will ask for supporting documents and prepare your final loan papers for signature.
What is Their Salary Minimum?
Once again, many lenders aren’t willing to offer you a personal loan unless you earn a substantial wage. The problem is life is rarely so cut and dry.
You may not make a huge salary, but you may not want to borrow a boatload of money either. Plus, if you earned a lot of money, you probably won’t need the loan in the first place.
Luckily, the companies that truly offer the best personal loans online have reasonable salary minimums and they won’t base their decision just on what you earn. Instead, they look at your entire financial profile.
Do They Charge an Origination Fee?
An origination fee is the name many lenders use to charge you money for establishing an account with their company. Unfortunately, many lenders claiming to have the best personal loans online charge this unnecessary fee.
Lenders either deduct the fee from the loan amount (forcing you to borrow more if you need the full loan amount) or they add it to the balance. If they add it to the balance, you’ll pay interest on it too.
This fee is calculated as a percentage of your loan amount and can cost you between 0.5 and 8%. Any company charging an origination fee isn’t truly offering the best personal loans online.
Will You Pay Early Repayment Penalties?
Many companies claiming to have the best personal loans online also penalize you if you want to pay more than your scheduled payments. That’s because they rely on the extra interest you’ll pay when they force you drag out your loan.
Fortunately, some lenders welcome extra payments, or full payment at any time. Ones that offer anything less aren’t offering the best personal loans online.
Can You Borrow as Little or as Much as You Need?
You shouldn’t have to squeeze your needs into what a lender offers. If you only want to borrow a small amount such as $500, will the lender help you?
What if you want to borrow $15,000? Is that amount within their lending limit? If not, eliminate them from your best personal loans online list.
Do They Offer Various Payment Options?
If a lender only offers monthly payments, they’re not offering the best personal loans online. They just want you to pay more interest.
They should many options such as bi-weekly payments if you want to pay your loan off quicker, or bi-monthly payments to align with mid-month and month-end paydays. They should also offer an online calculator so you can see how various payment options could affect your life.
How Long to Repay?
A short repayment term is ideal for a person who wants to pay higher payments to get out of debt quickly. However, some people want lower payments and more time to repay.
If the lender does not offer a wide range of repayment terms from six months to at least five years, they’re not offering the best personal loans online.
Is Their Interest Rate Reasonable?
When you apply online it is entirely possible that you could be pre-approved for a personal loan. Nonetheless, just because you’re approved it doesn’t mean that you should accept what they offer, even if you’ve been turned down elsewhere.
Some lenders claiming to offer the best personal loans online prey on unsuspecting borrowers and may charge up to 46.96% making it almost impossible to eliminate debt. If the interest rate offered seems too high, you have other options.
Will You Need to Visit an Office?
Some lenders claim to offer the best online personal loans, but part of the process must be done in-person. For instance, they may need you to come to their brick-and-mortar office to drop off proof of income or to sign loan documents.
If the lender does not conduct the entire process online from application to signature, it’s not really an online personal loan, is it?
Do They Release Funds Quickly?
Many lenders claim to offer fast cash or a quick funds release when you apply for an online personal loan. However, you should definitely read the fine print.
Some lenders take days or even a week to release funds, while others can have the money in your bank account within 24 hours. Unless the lender offers the speedier option, they’re not offering the best personal loans online.
Is Their Website Easy to Understand?
Is the lender’s website straightforward and transparent, or riddled with fine print even a lawyer would have trouble deciphering?
If you can’t understand what’s on their website, chances are their loan documents will be equally confusing. Lenders that offer the best personal loans online explain everything in simple terms anyone can understand.
What About Customer Service?
Most lenders are more than eager to lend you money, but what happens if you have questions or need assistance? Do they offer a 1-800 number, email, and online support? Lenders that offer the best personal loans online also offer outstanding customer service.
FlexMoney – The Best Personal Loans Online
FlexMoney doesn’t claim to offer the best personal loans online – we prove it. We offer outstanding customer service, total transparency, and quick funds release.
When you apply for a FlexMoney personal loan online, you’ll hear back from us very quickly. The entire loan process is handled online.
We use a soft credit check. If you’re pre-approved and you accept the terms, we’ll send you loan documents to sign digitally. You’ll never need to visit an office.
A FlexMoney personal loan uses less stringent criteria, but we do have some requirements. You must be at least 20 years old and a Canadian citizen.
You must also be actively working with a net monthly income of at least $2,000 for at least three months. Sorry, government benefits do not qualify and we will not consider applicants currently in an active bankruptcy, consumer proposal, or credit counselling program.
For verification purposes, you will need to have an open and active bank account with a Canadian financial institution for at least three months, as well as a valid email address and mobile phone number.
We currently lend in Ontario, British Columbia, Alberta, New Brunswick, Nova Scotia, and Newfoundland, but we’ll be adding others areas soon.
Find Out More
If you’re interested in exploring the best personal loans online or if you have more questions, please visit our website. We make it easy to find the ideal personal loan for your needs.