Things Millennials Should Know Before Applying for an Online Cash Loan

We are at this stage where millennials are slowly dominating not just the workforce, but the society in general. Those between 20 and 35 years old get to experience the best of many worlds – simplicity of lifestyle to slowly transitioning to the modern world to embracing various technological advancement.

Millennials are more headstrong as well, not settling with what a particular company has to offer. In this digital age, these particular age groups are known for being online entrepreneurs and digital professionals.

Apparently, most millennials are not careful when it comes to spending. Many of those who belong in this age group are embracing NOW and worry less about the future. There are also many who do not care much about their spending and do not take advantage of resources online to make themselves more financially literate.

In case cash became an issue, there’s credit card or you can apply for an online cash loan to get quick access to funds. Online cash loan is not all that bad. It’s just a matter of finding the right lender and using the funds in something that will help you grow your money.

That being said, here are things you need to know about online cash loan before you hit the “Apply Now” button:

1. It is convenient.

Most millennials can’t leave home without their smartphones. In fact, they can do almost anything there. Thankfully, online cash lenders have mobile-ready websites or apps that will make loan application easier. You can open the website or download the app and start the application process. You can do this anytime, anywhere too, as long as you have Internet connection.

2. Quick approval.

Along with convenience, getting an online cash loan means you get your money as quick as possible too. As soon as you submitted your loan application form, online cash lender representatives will review your loan application and give you a feedback in as little as 24 hours.

Note: In case you didn’t get a response within 24 hours, don’t worry. Surely, they are reviewing your loan application and will get back to you as soon as they can.

3. Collateral is not necessary.

There are loan facilities like Housing and Car Loan that require collateral. In case you still don’t have an asset under your name, that’s fine. The good thing about online cash loan is that you don’t need a property under your name to use as collateral for the loan. This means you don’t have to worry about losing your precious assets if you are not able to pay the loan on time.

On the other hand, lenders take your employment history and credit history seriously. Make sure these two aspects are well taken care of.

4. Online cash loan is a good way to build your credit score.

Credit score is life when it comes to loan world. Lenders, regardless of their nature or size, pay close attention to this because it gives them an idea on whether or not you are a responsible borrower.

Since you’re still young and have little proof to back up your ability and capacity to pay a loan, you are often advised to get a credit card. Aside from this, applying for an online cash loan is another way to build your credit score. Just make sure you pay on time and in full.

5. Interest rate is higher than loans offered by banks.

Online cash loan is a non-collateral loan. In case you’re wondering how online cash lenders earn from this and their “protection” against non-payment, it’s through interest rate charged on borrowers.

You have to be careful on this. Some lenders charge high interest rate while there are others who charge a reasonable amount. Take advantage of the online calculator found in the lenders’ websites and use it as a guide to compare how much you’ll pay given this specific amount.Remember that a mark of a good lender is that they are transparent. If they do not disclose charges like this, then move on to the next.

6. Inquire about other charges.

Apart from the interest rate, some lenders charge additional fees like processing or documentation fees. Make sure you ask for additional charges imposed otherwise, you’ll be paying for more than what you are expecting.

7. Nominate a specific disbursement option.

From the name itself, you know that this type of loan is purely online. This means you don’t have to go to their office and claim a check. The funds will be credited to you on your account, through Coins.ph, or by getting it from remittance centers like Palawan Express or Cebuana.

Review an online cash lender’s disbursement option, choose which among them are most convenient, and stick to it. More importantly, choose the right lender. There are tons of online cash lenders in the market today, taking advantage of the needs of those who have no access to banks. Do your researches, compare prices and charges, and make it a habit to read customer reviews.