Finding the best personal loans online can feel like you’re looking for a needle in a haystack. With so many lenders offering various products, you can waste valuable time and energy unnecessarily.
Luckily, you can pinpoint the best personal loans online simply and easily. Consider the following questions and then choose a lender that offers the process and options you want.
Do They Require a Minimum Credit Score?
Regrettably, many lenders only offer credit to those with great credit. Consequently, you must meet a minimum credit score before they’ll seriously consider your application.
While this reduces lender risk, it does nothing for those who have less than pristine credit. There’s no point in applying, because you have no chance of approval.
Luckily, not all lenders have a minimum credit score requirement. Instead, they consider many factors, with credit playing less of a role. If credit is a concern for you, the best personal loans online don’t have a minimum credit score.
What Emphasis Do They Place on Stability?
Many people don’t realize that most lenders place a heavy emphasis on work, home, and banking stability. They consider these important factors when measuring creditworthiness.
However, the period a lender considers varies drastically between companies. Some may delve into your life as far back as five years. If you’re moved, changed banks, or changed jobs during this time they may consider you unstable.
Of course, this is an unreasonable in such a mobile world. Many people change jobs for better pay or working conditions. Others move to a better or more affordable neighbourhood. Finally, people should have the right to switch banks at any time for greater convenience or better service. Nonetheless, you could find many lenders will turn you down if any of these situations apply to you.
Fortunately, some lenders put far less emphasis on stability. If you can show stability for at least three months, they will consider your application.
One of the simplest ways to discover which lenders offer the best personal loans online is to check their application form. Can it be completed quickly as it only asks for basic information? Or do they want to know all the details of your life over the past years. If it is the latter, it is best to look elsewhere.
How Do They Check Your Credit?
All lenders review your credit file before they make a decision. However, lenders can choose from two methods to do so.
A “hard” inquiry gives the lender all the details on your credit file. It also lowers your credit score slightly. Additionally, it remains on file for up to three years, even if the lender denies you credit.
A “soft” credit inquiry provides the lender with a general overview of your financial situation. It does lower your credit score. While it does stay on your credit file, it carries little weight if a lender looks at your report later.
Obviously, the best personal loans online use the soft credit inquiry option. If you’re unsure which method the lender uses, you can ask them. However, good lenders tell you upfront.
Do You Need to Provide Proof of Income?
Most lenders ask you to provide proof of income. This may involve digging up pay stubs, getting a letter from your employer, or asking your accountant for an income statement. Then you must upload the documents. All of this is a big hassle and it takes time.
Additionally, there’s absolutely no guarantee they will approve your application. You may jump through all these lender hoops only to find they say “no”.
Fortunately, times have changed. The best personal loans online offer income verification through bank statements. With your permission, the lender obtains these from your financial institution through an encrypted portal. It’s fast, easy, and you never need to worry about your banking security. They’re only interested in confirming your regular direct deposits.
Do They Tell You How Much You Need to Earn?
Unfortunately, many online lenders expect you to complete their application form without knowing their salary requirement. Nonetheless, when you don’t meet this minimum, they won’t consider your application. Why would you bother if this is the case?
Fortunately, good lenders provide you with their minimum salary requirement. This amount should be reasonable, because few people earn huge salaries.
Finally, the best personal loans online consider income from many sources, not just regular employment. If you earn a steady income through self-employment, the Child Tax Benefit, disability, pensions, or other sources, the lender should welcome your application.
What Fees Do They Charge?
Look for a lender that states they do not charge an origination fee. It is an unnecessary charge levied just for setting up your account.
Also check whether the lender charges a prepayment penalty if you want to make extra payments or pay your loan off early. You should be able to pay more at any time, without penalty.
Otherwise, you aren’t accessing the best personal loans online. You’re paying fees and penalties that add to lender profits.
Do They Offer Many Loan Options?
The best personal loans online offer a wide range of loan options. For instance, you should be able to borrow as little as $500 if that is all you need. However, the lender should also offer larger amounts. Unfortunately, many online lenders limit their online loans to between $3,000 and $5,000. If you need $15,000, that’s not going to help you at all.
Also look at how long you have to repay. Some people only need a loan for the short-term, while others want to stretch out repayment over years.
Regrettably, the minimum loan term is one-year for many lenders. If you want to borrow to spruce up your home and sell, this might be too long. If you want to pay affordable payments over a longer period, the lender should offer terms up to at least five years.
Finally, you’ll want to review your payment options. Can you make bi-monthly payments if you’re paid mid and end of month? Can you make weekly payments if you prefer to break your loan payment into smaller chunks?
The best personal loans online offer options that suit your needs. You shouldn’t have to adapt your finances to a lender’s limited options.
Is the Process Totally Online?
This may seem a strange question since we’re discussing the best personal loans online. However, many lenders start the process online, but finalize it in-person.
After completing their online application form, they’ll ask you to contact a branch or loans officer. Either that, or you’ll need to visit a brick-and-mortar office to sign your loan contract once you’re approved.
Of course, this defeats the purpose of using the internet in the first place. Always look for a lender that conducts the entire loan process online.
How Soon Will They Make Their Decision?
The best personal loans online offer a decision within minutes. The lender has all the information they need, so there’s absolutely no reason to leave you hanging.
Unfortunately, this isn’t always the case. Once you submit your application, you may see a popup stating you can expect to wait for days. This is not an indication of a good online lender. Their system should be automated and lightning fast.
How Soon Do They Release Funds?
Online lenders want your business, so you’ll probably see plenty of claims regarding “fast” money or a “quick” funds release. However, this means different things to different lenders.
Some lenders take days to release funds after approval. Others have money in your bank account within 24 hours. Clearly, the best personal loans online offer the latter.
What Customer Service Options Do They Offer?
When you’re dealing with online lenders, you’ll want to ensure they offer good customer service. Are they a Canadian company which offers a toll-free number during regular business hours? Do they offer additional customer service options such as a website FAQ? What about support tickets and an email option?
Find the Best Personal Loans Online through FlexMoney
FlexMoney is a proven leader in Canadian online personal loans. We’re transparent and straightforward. Consequently, we’re providing you with our basic loan requirements here:
- Canadian citizen
- At least 20 years of age
- Steady income from the same source for at least three months
- Minimum monthly net income of $2,000
- Active cellphone number and email address
- Open and active bank account with a Canadian financial institution with at least three months of transaction and banking history
Unfortunately, we can’t help everyone. Please do not apply if your income source is Employment Insurance, the Disability Tax Credit, or government benefits related to COVID-19. We can’t help you if you are currently enrolled in an active bankruptcy, consumer proposal, or credit counselling program either.
FlexMoney also offer many benefits over the competition. If you’re looking for the best personal loans online, here’s what we offer:
- No minimum credit score requirement
- Three-month’s stability
- Soft credit inquiry
- Digital income verification
- No origination fee or prepayment penalties
- Wide array of payment, term, and loan amount options
- 100% online process
- Decision within minutes
- Funds release within 24 hours, or less, if loan contract signed during business hours
- 100% Canadian company with Canadian customer service representatives
Find Out More
If you’d like to start the application process or have more questions, please visit our website. You can also find more information on online personal loans here. We offer the best personal loans online and the process is simple and fast.