Taking out a loan via an online site has become increasingly popular. They have triumphed while the high street banks have been loath to lend and many people prefer being able to fill in the forms etc online – it’s so much quicker.
Many online loan sites offer unsecured loans to all even if you have poor credit rating. Some sites act as brokers or an intermediary meaning that the company themselves don’t loan you money. They find a company that will.
Credit checks will be done sometimes by the online loan company and always by the lenders they match you with. One company asks you to take out a short-term membership with them for a one-off fee. Part of your membership fee pays for your access to your credit file. The remainder is for their service to match you with a suitable lender. Others will take commission from the loan company.
Credit rating
If you have access to your credit scores you can check there is no incorrect information held about you. Even an old address can make a difference.
Some loan companies will offer you a loan even if you have a poor credit history including CCJs. But you should be aware that the interest rate you are offered can be affect by a poor credit history, the amount you want to borrow and the length of time you require for repayment.
Membership
Taking out a membership does mean that you will be charged. While there is no absolute guarantee that a lender can be found, it is rare that you can’t be matched up with a suitable company. Within the membership deal you will also have access to some lenders who you wouldn’t otherwise be able to access.
Do your research
For your own peace of mind it is best to research these things thoroughly. Google the websites and read through them thoroughly so that you understand what you are signing up to and what the guarantees if any are.
It’s extremely important in any circumstances that will be asking you to sign a legally binding agreement that you check the terms and conditions. Many agreements have ‘get out clauses’ i.e. a period of time in which you can change your mind. But again it is important to check this before you commit to anything.
Online loan sites
They have their place for those who have found it difficult to find a loan from other sources or who just prefer the speed and anonymity of an online site. Of course you will have to give your details to the loan company or the membership site but most of these are collected and used securely.
In the case of membership sites and brokers they will pass your details onto third party lenders they put you in touch with.
Like we advise, just do your research thoroughly so that you understand exactly how the company works. Just because you need the money ,don’t rush in without doing this important side of things thoroughly. Making sure you read a Loans Direct review or ones for other companies like Ocean Finance means you know what you are signing up for.