1. What is an online loan?
An online loan is one that you can apply for by submitting the application through the lender’s website. All the information you need about the types of loans the company offers is available online as well as a loan calculator to help you determine how much your monthly payments will be.
2. How much money can I borrow with an online loan?
With online UK loans you can borrow between £5000 and £25,000. You can choose repayment terms between 5 and 25 years. When you apply, a loans officer will contact you to discuss which type of loans would be best for your needs and to do the required paperwork.
3. Can I get an online loan if I have bad credit?
Yes, you can get an online loan with bad credit. You do need to have collateral for this type of loan and the online lenders advertise that they will not penalize you with high interest rates because you have a bad credit history. You still have the same terms of between 5 and 25 years for the repayment.
4. What can I use the money for when I get an online loan?
When you borrow money on an online loan, you can use the money foe anything you wish. For example, you can buy a car, take a holiday, make needed renovations to your home, pay off some of your outstanding debts or pay for your child’s college education.
5. How can I compare online loans to find the best one?
There are many sites that offer comparisons between the various UK lenders so that you can see at a glance which ones offer the best deals for secured online loans. The following chart is based on borrowing £10,000 over 5 years.
Lender Sample Rates Monthly Payment Cost of Borrowing Total Amount Repaid
Halifax 7.7% £200.10 £2006.00 £12,006.00
Picture Financial 7.9% £200.99 £2059.40 £12,059.40
Paragon 9,9% £209.91 £2594.60 £12,594.60
First National 10.4% £212.15 £2729.00 £12,729.00
igroup 13.5 % £226.15 £3569.00 £13569.00
6. Can I apply for credit cards online?
Yes credit cards are also considered online loans. When you do a search of companies offering online credit cards, you do have to look at the interest rates. Many of the companies offer an introductory 0% interest rate, but after a period of about six months, this reverts to the regular interest rate, which is often high.
7. Can I get an unsecured loan online?
Yes, you can get an unsecured loan through the online lenders as well. However, in order to qualify for this type of loan, you do need to have an excellent credit history, a level of income such that you do have the ability to make the monthly payments and that you have good credit references.
8. Can I get a mortgage by applying online?
The online lenders offer a wide variety of mortgage programs so that you can buy that new home. Some of the types of UK mortgages that these lenders offer are:
” Interest - only
” Repayment mortgages
” Remortgages
” Buy-to-Let Mortgages
” Flexible Mortgages
” Commercial Mortgages
” Construction Mortgages
9. Can I pay off the online loan early?
If you have the ability to pay off your loan before the term, you may have to pay a penalty. This is because the lending makes its money from the interest that you pay on the outstanding balance. Therefore the penalty is a way for the lender to get back some of the money it would have made had you kept paying the loan according to the original schedule.
10. What about the lender refuses to give me an online loan?
There have been cases where lenders have refused to approve online loans. If this happens, the lender has an obligation to give you the reasons for the refusal. Just because one lender refuses you a loan doesn’t mean that all lenders will do so. You can always apply to another lender and you will probably get the money that you need and you could always seek financial advice to find out why.
