It’s natural to turn to a loan or line of credit for help in an emergency, but could your instincts be leading you wrong? If your gut reaction is to visit a financial institution in person to get what you need, then you may be making a big mistake.
Visiting a brick-and-mortar location takes time to speak with a representative, it takes time to fill out an application, and it takes time to hear if you’re approved.
An online line of credit (or LoC for short) may be a faster, more convenient alternative to borrowing money in person.
But is it a good fit for your finances?
1. It’s Convenient
Let’s say your first choice of financial institution rejects your application. This isn’t meant to jinx you. Far from it!
Nevertheless, it’s a possibility if you don’t have a prime credit score. Many of the 76 percent of Americans who are denied funding are rejected because their scores are too low.
If you’re applying in person, you’ll have to visit the next closest financial institution.
This rejection causes a huge hassle if you live in one of the many financial dead zones in the country. As more financial institutions close their doors for good, areas without brick-and-mortar locations grow bigger.
This means you’ll have to travel farther to get where you need to go!
Online, it’s a different story.
If you receive word online that you don’t qualify for one LoC, applying for another one is as simple as opening a new tab. You don’t have to leave your house to search for a bad credit personal line of credit and start again.
2. It’s Fast
Let’s say you’re facing down an unexpected plumbing emergency. Next to finding a dependable plumber, how long the borrowing process takes from start to finish is crucial.
While individual financial institutions may have unique timeframes, generally, online options tend to be faster. With an online personal line of credit, financial institutions rely on number-crunching algorithms that can speed through your application.
The result? Quick response times at every step of the borrowing experience — from your initial approval to receiving funds.
3. It’s Easy
Borrowing an LoC makes up just one half of the experience; the other half is paying back what you use, plus interest.
The thing is, your payments will fluctuate depending on how often you tap into your credit limit. This might make it hard to know what you owe and when.
Reminding yourself of these details is easy online. You can even arrange automatic payments to make sure you’re never late with your bills again.
Setting up an interview with a financial adviser is an old way of borrowing money. If you’re tired of the hassle of traveling to your financial institution, don’t. The next time you need help covering an unexpected emergency expense, open your laptop instead. You may find a convenient option faster from the comfort of your home.