How to Borrow Money Online
If you want to borrow money online, then it will not be surprising if you feel a bit daunted by the choice that you have. There are a lot of lenders and many are available for online borrowing and this means that you will have the task of picking between them. This could be pretty tricky and so it could be a good idea to think about what you might be able to do to make this task easier. Firstly, it is worth thinking about the different approaches that you could take.
How much would you like to borrow?
Representative Example: Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £250 borrowed for 30 days. Total amount repayable is £310.00. Interest charged is £60.00, annual interest rate of 292% (fixed). Representative 669.35% APR (variable).
Do All the Research Yourself
You could decide that you would rather do the research by yourself. This will allow you to be completely in control of the decision that you make. You will need to consider what it is that you are looking for in a loan and then you will be able to choose the one that fits your requirements the best. So, you will be looking at things such as:-
- How much you need to borrow? Think about the minimum you can get away with borrowing and try to borrow just that. You pay for all money that you borrow and so by keeping it to a minimum your loan will be cheaper.
- How soon you need the money? Consider whether you need the money right away or if you can wait. This is important as some emergency loans will take longer to arrange than others.
- What you are prepared to pay? Think about how much you are prepared to pay for the loan and whether there are any factors that would mean that you would be happy to pay more.
- How and how often you want to repay? It is really important to think about how much you can afford to repay. If you are not sure then do some calculations so that you end up taking on a loan that you can afford and manage.
- How reputable is the lender? You may think that it is important to use a lender that has a good reputation. Consider, if you do think this, what you feel would make a lender good and then look out for those factors when choosing between them.
- How good is the customer service? Some people feel that customer service is really important and if this is the case with you then it could be wise to contact the lenders before you choose between them (once you have short listed them) to see how good you feel they are at dealing with you.
It will take sometime to look at all of these factors. You will need to start by finding out who all of the lenders are and what they offer and then you will be in a position to compare them. It might be that you have to look closely at their terms and conditions to find out all of the information that you need or contact each one of them. This could be very time consuming and you may not have the time if you want to borrow money online urgently or you may feel that it is not something that you would like to do.
Do Some of the Research Yourself
It can be easier if you do some of the research but get some help with it. There are different ways that you can do this.
- Ask People You Know – You could ask people that you know about the lenders they have used to find out whether they can recommend a lender. This will then lead you to perhaps a group of lenders that you can then research in full and compare. It could be worthwhile to find out from the people that you ask, what it is that they like and dislike about the different lenders and they will then be able to explain things in more detail so that you can understand better. You will then get a better idea of what you might be looking for in a good or bad lender and this will help you with your research. The more people that you can get information from, the better the chance is that you will be able to find a suitable lender as a result.
- Look at Comparison Websites – If cost is a really important issue for you then looking at comparison websites could be really helpful. They will allow you to put in how much you wish to borrow and how long for and will provide you with a list of lenders and how much each will cost. Then you will be able to do more research for each lender to see how close they come to fulfilling your other requirements as well. This can be extremely useful as not only will it eliminate some lenders but it will also allow you to find out more about which lenders are available and therefore which ones you might want to investigate in more detail. It could be wise to look at a selection of comparison websites as they tend not to look at every lender and may therefore vary in their results. It is worth noting though that comparison websites are paid by commission on the sales they generate from the recommendations that they make. This means that they might be more likely to recommend companies that will pay them more and perhaps miss out those that will not. Therefore, there is a risk that they might not be suggesting the companies that will be the cheapest.
- Look at Review Websites – A review website will compare different lenders and rate them based on a number of factors. You will be able to use these to find out about the lenders and what they offer and whether you will be able to use them to borrow money online. It is worth being careful with these for a number of reasons though. Firstly, they might be judging lenders on different factors to those that you will judge a lender on and therefore if they rate a lender highly it may not mean that you will agree with them. They may also earn commission in the same way as comparison websites and this could lead them to be biased in the lenders that they rate highly and recommend. Therefore, it is really wise if you are using such a site, that you then do some research for yourself as well.
Leave It to Someone Else
You might feel that you do not have the time to do any research or that you feel that you just do not have the expertise. If you feel this way, then rather than just picking the first lender you come across, it can be useful to get the advice from someone else.
- Financial Advisor – A financial advisor will be able to explain your options to you and then make a recommendation as to who you should go with. They will have the knowledge to quickly be able to work out which lender will sit your needs the best determined by the information that you give them. It can be a good idea to be aware that they might only be able to recommend products provided by the company that they work for if they are not independent. Independent financial advisors will be able to compare all products but you will have to pay them for their help. They tend to charge by the hour and they can be quite expensive so it is wise to check how much they will charge and consider whether you feel that it will be worth it.
- Credit Broker – A credit broker such as Boutell will take your details and then present you with a £500 loan that will suit you. They will not charge you for doing this as they get paid commission by the lender that they recommend. They are easy to use and very quick and you will need to do nothing more than provide them with some details and they will present you with a solution. This can be simple and quick so if you are in a hurry or do not feel you have the expertise to sift through different details about different types of loans, this will be the best choice for you.
So, you can see that there are many factors that you might want to consider when you are thinking about whether to borrow money online, even if it’s just a £200 loan. It is good to spend a bit of time considering what it is that you want from a loan as this will help you to more easily find the right one for you. You may feel that you do not have much time or expertise to enable you to do this, but there is help available and it is up to you to decide on how much help you want and how much you want to influence what you choose.