Online financial services are becoming more and more popular. They do the hard work for you when it comes to your financial needs. Just like a financial advisor they can explain exactly what they have found that suits you and your circumstances.
Even though these online services aren’t so different than a traditional financial advisor we often have reservations about them. This seems purely because we aren’t face to face with an advisor.
Most online financial service sites try to address the most common questions before you engage with them. For this purpose they usually have a Frequently Asked Questions (FAQs) or Common Questions and Answers pages.
Here are some of the most common questions and typical answers:
How much can I Borrow?
Obviously this question is important to you as a borrower although most customers already have an amount in mind. Online financial services usually have a range of products they can source and therefore a range of amount they can lend. These tend to vary from as little £75 ($116 USD) to £100,000 ($156,000 USD). Some services have a much lower maximum limit of £15,000 ($23,000 USD).
Will the Interest Rate be Competitive?
Interest rates vary depending on the type and length of the loan, your personal circumstances i.e. usually determined by your credit rating and the lenders terms.
Who will My Lender be?
Most financial services have access to a number of lenders including primary sources and secondary ones. As each case and circumstance is different, this will affect who you are matched with.
Often you are offered more than one source and borrowers sometimes choose more than one option i.e. their loan comes from more than one lender.
What can I use the Loan for?
Usually there is no stipulation about what you use your money for. Typically though loans are used to consolidate debts with higher interest rate, home improvements, unexpected repairs to house or car, new vehicles, college fees or other expensive expenditures.
How quickly will the Application be Approved?
Online loans are often approved very quickly – almost as quickly as all the information is handed over.
How soon can I get the Money?
Some short term (pay day) loans can be in your bank within hours of applications; others can take up to 15 days to be made available.
What if I have a Poor Credit Rating?
Many lenders will loan money even if you have a poor credit rating. However it can affect the interest rate they require for repayment. You can of course access your credit rating from the main companies and ‘clean yours up’ by making sure there is no out of date information still live.
If the online financial services company such as Norton finance or Loans Direct’sFAQs don’t cover off the question you have, you can always contact them by phone or email. This is the fastest way to get the information you need to make sure you are happy and that your application goes through smoothly.
By Rob Rudd
Rob Rudd enjoys reasearching and writing about finance and loans and contributes to several financial websites. When not writing he spends time with his family in Hampshire, England.