Tout ce que vous devez savoir lorsque vous empruntez de l'argent à un prêteur en ligne
One of the things the internet has done is make life a little easier to live. Plus, it has made accessing different items a lot easier and quicker to do. Even Omacl Loans are getting easier to obtain when you use the internet.
Now you no longer need to walk into an intimidating bank branch and ask for money. You can do it simply over your computer and get the cash you need quickly. Continue reading to check everything you need to be aware of when borrowing money online.
Key Loan Elements
There are several elements you need to know about when it comes to loans. They are known as the 5 Cs and just about every loan officer, whether in a traditional bank or online, goes by these elements:
- Character- this takes into account how well you have paid your previous loans. A good credit score boosts your character to the loan officer
- Capital- this is how much money assets you have on hand after your liabilities have been subtracted. The more you have the better security risk you become
- Capacity- are you able to repay the loan. This is what this ley element determines and helps you look good when you have the capacity to repay the loan on time
- Conditions- these are the loan terms or all the details the bank is requiring of you. For example interest rate, length of the loan, and so on.
- Collateral- another term would be security. What do you have that the bank can use to secure the loan and sell to get its money back if you default
Costs Associated With Loans
Nothing is free in this world, and that includes online loans. There will always be fees associated with lending money as that is one way the bank makes its money. What follows are the possible loan fees you will be charged when you get a loan.
Online lenders may not apply all of them but it is good to know them so you are a victim of sticker shock:
- application fee
- brokerage fee
- closing fee
- commitment fee
- documentation preparation fee
- Processing fee
- Underwriting fee
- origination fee
- credit insurance fee
- late payment fee
- interest rates
Banks can be very creative when it comes to charging fees and making a little more money. Some banks may even charge a paper copying fee for photocopying loan documents, points which are anywhere from 1 to 10% or more.
Then there can be a check processing fee, collection agency fee, non-sufficient funds fee and on it can go.
Qualifying for a Loan
There are several steps you must go through in order to qualify for a loan. The first and quickest step will be filling out the application. This does not take a long time to do and it is the initial step everyone must take.
The next step is that you have to have a good credit rating. The bank does a credit check for you and your score, with a majority of lenders, must be above 660. If it is, then you need to provide documents proving your income, cash savings, stocks, and other assets.
These documents prove to the lender that you are capable of repaying the loan. After that, you will have to provide documents showing your total debts. These can be car payments, mortgage, credit cards, and so on.
Once the paperwork is submitted, you simply wait for a decision. This is the actual process that is different from pre-qualifying for a loan. Pre-qualifying is a simple process that only tells you the maximum amount you can borrow.
The steps are filling out the pre-qualifying form, wait for a soft credit check and then get your answer. Documentation only comes when you actually apply for the loan.
Applying for a Loan
There are several steps to take before you actually go to your bank and talk to a loan officer. These steps help you firm up the purpose for the loan, how much you need, and make sure you can qualify for a loan.
- determine how much money you need- this will be your loan amount if you qualify
- decide on the loan type- there are many different types of loans and some are easier to get than others
- pick the right lender- do some research and see which is the best online lender to use
- double-check your credit score- this will tell you if you can get a loan or not or if you need to make some other payments to clean up your credit and boost your rating
- double-check the lender’s requirements- you may or may not be able to meet them all
- read the fine print- do some comparison shopping to make sure you are getting terms in your favor
- put your documents together- bank statements, credit card statements, and all the other documents the lender will need to prove you are capable of repaying the loan
- do a pre-qualifying application- this will help you to see if you qualify for the loan amount or not.
A word of warning
Be careful with online lenders. Some offer a quick turnaround from application to funding, usually within 24 hours, but they are not the best online lenders to work with. The reason for that is those lenders charge more fees than credible online lenders and their interests are very high.
Plus, their fine print can be very tricky. You may get quicker funding through these types of lenders but you may not like their terms or cold attitude.
Some final words
It can be a bit intimidating when it comes to applying for a loan, even online. Online lenders have the same government regulations to meet as traditional banks do. That means you have to prove your income, savings, and assets just like you would at a traditional bank.
Online lending may be quicker and not as intimidating as going to a traditional bank but the paperwork is still the same.