Going to a bank in order to get a loan is not always an option, especially if you need to borrow a few hundred pounds as quickly as possible. Getting the money that you need can prove to be considerably more difficult if you have a bad credit score or if the bank that you’ve chosen to work with does not offer online lending services.
This having been said, you can always use an online platform in order to get a loan, without having to go through all the bureaucracy that most banks employ in order to decide who is eligible or not for their services.
What is an online loan?
The term “online loan” refers to a loan that is given out by a service or company, rather than a bank. It is usually easier to borrow money using an online service due to the fact that most requests are approved in under 24 hours and there are no hidden taxes or fees that you must pay.
One of the most important things to keep in mind when it comes to these loans is that they do not require you go to go to any meetings or to submit physical documents. Everything is done online, allowing the creditors to reach a decision much faster, once you submit your loan request. Upon approval, the transaction should only take a few minutes.
Furthermore, taking out an online loan via a site like CobraPaydayLoans.co.uk means that you will be able to follow its status on the service’s website or app. This can make it much easier to keep track of your monthly payments and also to submit the required information needed for approval.
What documents are needed for an online loan?
Requesting an online loan requires less information than if you were to go to a bank and borrow money. In most cases, you will not even be submitted to a credit check in order to establish if you are eligible or not. This is due to the fact that the services that offer online loans focus on short-term operations, with fewer installments, rather than ones that must be paid over the course of several years.
While the list of required information may vary depending on the amount of money that you want to borrow, or the length of time that you want the loan to span across, all of it may be submitted digitally. Generally speaking, you will need:
- Proof of address
This can be in the form of any document that ties your name to a particular address. You may submit a photo of your driver’s license, a benefits entitlement letter, a tenancy agreement or a utility bill.
- Proof of identity
Depending on your status, you may submit a photo of your driver’s license, passport, biometric residence permit, or other governmentally approved documents that have both your name and photo on them.
- Proof of income
You must submit proof that you have a monthly source of income. This information is verified differently, depending on the amount of money that you request to borrow.
Look for the app
Taking out loans using online services is much easier than going to the bank to borrow money due to the fact that they offer apps that can be installed on smartphones and tablets. The software will help guide you through the information submission process and also provide important information with regard to what fees you have to pay or when the next monthly installment is due.
Finding and installing the app is as simple as going to the play store or the App Store and searching for the name of the service that you are interested in. In most cases, you will also find the link to the app on the website of the service.
Keep in mind that installing and running the apps is completely free and you will never be charged for using them.
Plan ahead and establish the exact amount of money that you need
The main thing that you must pay attention to when looking to borrow money online is how much you ask for. Most services will not allow you to get multiple loans at the same time, so it is better to establish what amount of money you need and plan accordingly.
Generally speaking, the best course of action is to first establish what amount of money you need for a longer period of time and also take into account a few potential unexpected expenses. Once you determine what amount of money you need, find a service that you like, go to its website and read any additional documentation that is presented there. It is a good idea to also download the app prior to borrowing the money to ensure that it is compatible with your device and that you know how to use it.