Once upon a time, people had to go into physical payday loan stores to get cash fast. With technological advancements and the rising demand for unsecured personal loans, Online lending has become the go-to for many to get money quickly when they need it the most.
When looking for a short term or payday loan, you may be considering online lenders like Cash Factory USA.* And you may want to understand some of the benefits of online lending first.
To help clear the air, we’re going to list some of the most notable upsides of online lenders.
Let’s get to it!
What is Online Lending?
Broadly speaking, online lending typically means lending of any kind that is primarily completed online as opposed to at a bank or other storefront lender. Online lenders provide an alternative to traditional in-person lending and are geared towards being accessible, simple, and direct.
While traditional banks and storefront lenders may still rely on you providing one or two forms of picture ID for identification, online lenders often use other methods to help identify consumers and complete the underwriting process. Online lenders utilize many of the same credit scoring models that are used by storefront lenders, and often utilize the automated clearing house (ACH) network or the debit card network to get money to you quickly. Storefront lenders are often not equipped to do that.
Benefits of Online Lending
The following list doesn’t cover every benefit and isn’t written in any particular order. The list is simply here to open your eyes to a few of the possible advantages to going with an online lender.
Accessibility
At the top of the list, online lending breaks the barriers of traditional banks and the storefront lenders of the past. Many people within the younger generation can attest to their preference for online shopping, and applying for a personal loan often feels no different. Online applications are aimed at being simple to complete. Moreover, online access can provide accessibility to people who may not have otherwise been able to use traditional providers.
While banks provide many valuable services, like checking accounts and debit cards, they are often not equipped to manage loans on demand. Don’t believe us? Walk into your local bank branch and ask the teller for a $1,000 loan. Tell them you need to be approved in the next hour. You will see that most banks are not set up to accommodate this kind of request.
Additionally, with online lenders, you don’t have to wait for a lender’s business hours to begin the application process. With internet access, many online applications are available 24/7 so you can get started at any time!
Digital Security
In the digital age we live in today, many people are becoming increasingly skeptical about leaving sensitive data on unsecured paper trails. Storefront lenders often require hand-completed applications as well as paper copies of sensitive documents which they keep in files in their stores. It is not surprising that consumers would be concerned with where their information ends up. Although no storage system is guaranteed secure, nowadays, online lenders typically rely on software-as-a-service and other cloud databases intended to appropriately encrypt and protect your information. Of course, this is one of the reasons you want to use a reputable lender. If you have any questions about how your information is used or stored, you should never hesitate to ask the recipient directly.
Physical Security
Just like you gain digital security, it can also be more secure to deal with funds exclusively online. If you are walking around with cash, you could lose it, or worse, have it stolen from you. One of the benefits of going online is you can have your money deposited directly into your account, quickly and securely.
Confidentiality
Operating your finances behind a screen means that you get to keep your fiscal life private from onlookers, neighbors, and people around town. While there’s certainly no shame in requesting a personal loan, it’s not always something you want the world to see you doing. Online lending offers you a level of privacy you may not otherwise get.
Comparison
Shopping for a loan online also means that you can compare lenders more easily and pretty instantaneously. Not only can you review terms and rates, but you can also check out reviews for online lenders to read about other peoples’ experiences with them. For example, here’s a look at our reviews on Trustpilot. Cash Factory USA takes pride in knowing that we are continually able to meet our customers’ needs and are a reliable source for payday and installment loans (in eligible states).
Efficiency
Applying for a personal loan shouldn’t be a hassle. Instead, it should be a seamless and fast process. At Cash Factory USA, once you are approved, you will typically get funded the same or next business day. Moreover, many online lenders have begun to offer same-day lending opportunities when the borrower has an accepted debit card account*.
Ease-of-Use
Unlike traditional banks and lenders, with online lenders you can usually complete the entire process virtually from the comfort of your home. This means that the process of filling out your application is often less time-consuming and stressful. After all, you have enough to worry about.
A Little About Cash Factory USA
Cash Factory USA is committed to providing innovative financial products and high-quality service. Having served more than 100,000 customers, our products are geared towards fulfilling very specific needs when options are limited. And, while a payday loan or short-term installment loan is not recommended to be a long-term financial solution, it may be necessary at times.
To learn more about our rates and terms before you apply, or to check lending options available in your state, check out this guide.
Closing Thoughts
Online lenders have helped to transform the loan industry just like Uber did to the transportation industry. The benefits of online lending are plenty, but before you apply for any type of loan, be sure you read and understand your loan agreement. And, importantly, only borrow what you need and can afford to pay back. If you are having trouble repaying a loan, contact your lender directly and early. Most lenders will work with their customers who work with them in good faith.
Image(s) or Footage (as applicable), used under license from Shutterstock.com.