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Borrowing money isn’t fun by any stretch of the word, but where you go for a line of credit can simplify your borrowing experience.
Taking out credit is necessary sometimes. You lose your savings or hit a rough patch that makes it hard to handle an unexpected medical expense or auto repair. So, you plan on applying for a line of credit (LoC) to help you take care of business.
You could do it the old-fashioned way by walking into a financial institution and asking for help, or you could level up your financial game to suit the 21st century. By going online, you unlock all the perks of FinTech.
4 Benefits of Borrowing Money Online
FinTech is a portmanteau of the words Financial and Technology, and it describes any technology that supports financial services. In terms of your borrowing options, it describes online direct lenders and other financial institutions that offer digital LoCs.
Here are four benefits of using them over in-person alternatives.
1. Convenient Comparison
Traditionally, comparing the rates and terms of several lenders would involve making individual visits or phone calls to a bank. But since FinTech lenders operate completely online, they post this information conveniently on their website.
This is a plus if you live in a city like Memphis, notorious for bad traffic and even worse public transit. There’s no need to take time out of your day to drive or take a bus to get around the city. You could click through 20 tabs if you wanted to, comparing rates side-by-side from the comfort of your home.
2. Local Options
There’s always a fear that by going online, you lose the personal touch. You’re going from a local bank to a huge corporation with offices all around the world.
While some companies operate like this, many others offer localized options. This can help you narrow down the options you need to compare. By focusing on easy online loans in Tennessee, you’ll interact with line of credit places in Memphis, TN instead of an international lender on the web. In this case, easy refers to the application process, which can be completed from the comfort of your own home in just a few minutes.
3. Broad Eligibility Requirements
FinTech has changed the way lenders assess your creditworthiness. It used to be that your credit score had the final say on whether you would be approved. If you had a low enough score, you would be denied.
Thanks to FinTech, lenders can assess more of your financial background in a fraction of the time it takes these older underwriting processes. As a result, some online direct lenders will compare your credit score to your income, debt-to-income ratio, and employment status.
This comes as good news to people who are recovering from bad credit. If you can prove you can afford to repay what you owe, online direct lenders may approve online loans despite your score.
4. Fast and Simple Applications
Paperwork is a necessary evil of any loan application, but the FinTech world tries to minimize how much you have to fill out.
Online applications are quick and easy to complete, as long as you have your basic contact and financial details on hand. This is as simple as knowing your address, social security number, and bank account number.
Borrowing money isn’t the most fun you’ll have in life, but you can make it easier on yourself by going online. Take the time to compare your options to see if FinTech offers the right fit for your needs.