Small dollar loans, used for short-term goals like emergencies and unexpected bills, are incredibly easy to obtain. When you contact a lender licensed by your state to issue direct online loans, you can get the money you need in as little as 24 hours.
The Internet has Changed Everything
The internet has changed the way we do most things in life, and its influence can be seen in the lending community too. Instead of having to meet in-person or speak over the phone to receive a small dollar loan, you can now open up your laptop, type in the URL of a lender, and apply from your kitchen table.
As long as you are at least 18 years of age, a permanent resident of the US with a steady source of income and a valid bank account and email address, you have everything you need to apply. And since you’re visiting a direct online lender (key here being “direct”), you can receive quick and efficient loans.
I remember having to visit banks and other small lenders back in the day and it usually took a lot of time to get visit each lender one and at a time and see what they could offer.
With direct online lenders, no other organization is involved in issuing your loan, so you won’t be waiting while bureaucracy slows down your approval process. The same company accepting your application is the one approving it, so you’ll know if you qualify instantaneously.
From there, your loan can be sitting in your account by the next business day.
The Risk of Online Lenders
You should always be careful when you enter your personal information online, especially when it involves your finances.
While you should only log onto a secure network when you fill out your application, you also take the responsibility to verify the direct online lender you’ve chosen to do business with is taking the appropriate security measures when accepting your information.
This should include Secure Socket Layer (SSL) encryption along with Verified Certificates to protect your data from malware. Top of the line firewalls and constant oversight should also be involved, as your information has to be secure.
Do Your Research
The loan itself should also be strictly maintained to foster healthy finances. Don’t go with lenders that offer extremely high limits or confusing terms. There should be restrictions to the types of loans you can receive so as not to provide too much temptation to spend over your limit.
The lenders that keep their loans purposefully small (between $200-500) are the companies that you should contact. The lenders should also have varying repayment programs (in single payments settling the loan in one lump sum and flexible payments settling the loan over a longer term of smaller contributions).
Researching your lender before you fill out their application can help you determine if their loan policies are right for you. One of the ways you can do that is to check out MoneyKey for more info and compare their responsible lending practices to other direct online lenders.
Whatever size of loan you do receive should be based off of your unique financial situation. Make sure you contact a direct online lender who’s willing to work with you to provide such a service. When you do, you can receive a small dollar loan faster and easier than you’d think. All you have to do is head online.
Have you ever dealt with a online small loan lender? I would love to hear your thoughts and comments below on how it went for you.