Gone are the days when people filled forms and made a physical presence in the banks to apply for a personal loan. Now is the FinTech era, and things happen online from starting to the end. The conditions are much more convenient and speedy now, but that does not nullify the need for precaution. Yes, there are few things that you should keep in mind while applying for the loan online.
Do not get driven by the over popularised advertisements
Those bright coloured advertisements that appear as the pop-up while you shop for the loan option can be attractive but may not be reliable. One fact is prevalent in the industry, and that is the exaggerating and over popularised loan offers are usually double-faced.
You never get anything according to the commitment. The best way to detect such things is to focus on the content and promises a promotional post makes. The features of the loan will look unrealistic such as very low rates, super instant transfer of money, no scrutiny of your finances etc. Never click on them; it may be a trap.
Never hide any financial information once you finalise a lender
The online lending platform is quite powerful now, and you cannot hide anything about your finances. The loan companies have 24×4 access to the credit reports of credit reference agencies. If they find you hiding something important, first of all, they reject the application and then report it to the credit reference agency.
This situation, in turn, causes a sharp drop in the credit score.
Do you want that? No??? PERFECT!! Then never try to cover the information. You should know that lenders love loyal borrowers. Knowingly or unknowingly, you should not hide any financial information. It can bring rejection.
Just like you think that ‘I have sundry options for unsecured personal loans in Ireland, many can be desperate to give me the loan. Lenders have many borrowers. They do not chase you to borrow from them, especially when you are not honest about your finances.
Every fee-free broker is not trustworthy
Online brokers always promote their presence with the tag of ‘fee free brokers’, which attracts most of the borrowers. If you are using a broker to find you the best deal and you feel proud that it takes no fee, then wait a minute. EVERY BROKER THAT TAKES NO FEE FROM THE BORROWER IS NOT ALWAYS RELIABLE. DO YOU KNOW WHY???
When a broking company does not charge from the borrower, that means it takes a commission from the lender. Different lenders give an unusual amount of commission. Some offer more to the broker while some provide a smaller amount.
You can imagine easily that the broker majorly suggests the loan option of the lender on its panel that gives more commission. In that case, even if the concerned lender has an expensive deal, the broking company will suggest that particular loan option to get more money. On the other hand, may the lending company has cheaper options for personal loans. However, because it gives a smaller payment to the broking company, its personal loan choice gets inferior in priority.
Always depend on yourself and before you agree on the suggestion of advice, compare the suggest option with the other choices. Make online platform your weapon to remove all the misconceptions.
Read about the myths on online personal loans
Realisation of the other side of the coin always helps in making smart decisions. Many borrowers take wrong decisions or face rejection because they get driven by the myths. They take them as real and sometimes surrender before they apply. Before you apply, read about the myths popular about the loan product and the online platform.
Some of the common myths are –
- Bad credit people always face rejection
- Online personal loans transfer money in just 5 or 10 minutes
- Personal loans still have a higher rate of interest etc. etc. etc.
The wrong information is like financial suicide, prevent it and make a wise decision.
Conclusion
It is never difficult to apply for personal loans online, but this ease sometimes makes us careless. We make mistakes that put us in regretful situations. The best method is to do extensive research of the market. NO, it is not a waste of time because a personal loan is something that keeps expressing its needs due to varied financial reasons. The knowledge of today will help to craft a better tomorrow.