Deciding on which lender to choose can sometimes be a difficult decision for borrowers. Knowing the right features to look for and compare can help make the process easier. Some features a great online loan offers include fast funding and payment flexibility. Here are four top features to look for when comparing online loans:
1. Fast funding
Online loans can help with covering urgent expenses. They can be used to pay for car repairs, home repairs, and other needs. A good online loan should give the borrower the funds they need in under a week. In fact, some lenders will distribute the funds as soon as the same day the borrower applies. This could help someone who needs to pay for an unexpected medical expense that’s due the next day. It could also help pay for a young family’s daily expenses until the next paycheck arrives.
2. Payment flexibility
Affordability is often a top priority in choosing a loan. The monthly payment amount the borrower has to pay is primarily determined by the repayment term. Longer repayment terms tend to have lower monthly payments with more interest, while shorter terms tend to have higher monthly payments but lower interest rates. A great online loan will offer an affordable monthly payment along with a lower interest rate.
It’s important to compare interest rates between different lenders, given how much they can vary. The interest rate is also determined by the borrower’s credit score, the loan size, the borrower’s debt profile, and the consistency of the borrower’s income.
Additionally, it’s helpful if the lender is willing to extend the loan with no additional fee if a borrower has to skip a payment. Some lenders allow for payments to be deferred, or put off until a later date, when the borrower has made a certain number of consecutive on-time payments.
3. No hidden fees
Some online personal loans come with an origination fee that may be included in the borrower’s monthly payments. It’s better to find a loan without an origination fee, or even with no fees attached to it at all. But it should be noted that a loan with fees doesn’t mean it’s the