Insurauto Fast

Need To Know About Online Loans

Basically, these loans can be divided in two categories: the short term loan and the instant personal loan. The main difference between them is represented by the length of the repayment period. While the loans in the first category are granted for periods from 1 week to 14 days, those in the second category are granted for periods varying from 2 weeks to 30 days.

Another significant difference between the two is the amount of money that can be borrowed. Usually, you can receive more money if you apply for an instant loan than if you apply for a short term one.

When you apply for a bank loan, you usually have to bring in something valuable as collateral, such as a car or even a house, in order to secure the credit. However, you do not have to present any guarantees when you apply for online loans. Your next paycheck is the only collateral you offer to your lender.

How to Get Instant Cash?

The application procedure is very simple and, above all, it takes a short time to complete. This is mainly because the paperwork is reduced to minimum and the information required is only basic.

In order to become eligible, you must be at least 18 years of age and a citizen or permanent resident of the US. Also, you have to demonstrate that you have a permanent source of income, consistent enough to enable you to repay the loan.

Some online loans providers ask you to submit a proof of employment, showing the period since you have been working at your current job, but most of them only ask for a phone number and specific information about the employer and confirm your employment status by phone.

Given the shallow and fast procedure of granting easy payday loans, the lenders are exposed to considerable risks. Their need to verify your employment status is, therefore, understandable, and so is their tendency to apply higher interest rates.

A wide spread misconception about online credits is that they are instantly granted, the pre-approval stage being completely eliminated. This step exists, the only difference between bank-granted credits and those you obtain online being the duration of the procedure. In the latter case, everything lasts a lot less, because it does not involve extensive verifications or faxing.


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