Sometimes you just need some extra cash in a pinch and want a loan application that's not overly complicated, long-winded, or slow to get approved. Quick loans can be helpful in many scenarios, whether you need cash in an emergency or to check off a home renovation project.
In fact, with so many options online to get quick cash, there's little need to go the traditional route of lengthy applications and long waiting times. With lenders like Jora, you can apply in minutes and even get same-day loans (if you apply by 10 a.m. CT) to get the necessary funds without wasting time.
However, with so many options online, it's worth looking at some dos and don'ts to help you make the right choice. It's essential to consider all your options carefully and weigh the pros and cons of taking out speedy cash loans.
Below, we break down the top three dos and don'ts when shopping for a quick loan online.
Quick Loan Dos
Compare Interest Rates
When shopping for quick loans online, one thing you want to compare is interest rates. Even a single percentage point can significantly add to your total monthly repayments. This can greatly affect your monthly repayments and the overall cost of taking out the loan.
Be aware that some lenders will charge higher interest rates than others. For example, some lenders specializing in bad credit loans often charge higher interest rates. This is because lenders consider those with lower credit a greater risk.
Consider the Impact on Your Credit Score
Before taking out any finance, it's vital to consider the potential impact on your credit score. Whenever you apply for finance, it can cause your score to temporarily dip because lenders will need to do a hard credit pull.
That's why it's important to research the lender requirements before applying. A rejection for finance can end up as a red flag on your credit report, which makes it much harder to apply for finance again. If the lender rejects your application, it's best to give your credit time to stabilize by waiting a few months to reapply.
Another thing to consider is the impact on your credit if you miss payments. That's why it's best to err on the side of caution when deciding how much money you wish to borrow. Only borrow what you can comfortably afford in your monthly budget to protect your credit score from missed payments and make the loan more manageable.
Choose Reputable Online Lenders
There are so many online lenders to choose from, so it's easier than ever to find a loan product that's right for you. But make sure to only use reputable online lenders.
You can check user ratings on Trustpilot to see what each lender is like, or check them out on the Better Business Bureau to see their BBB rating. This will give you an indication of what they're like and how customers rate their experiences.
If the lender does not have a BBB score or has negative user reviews, these are red flags that you should avoid in favor of a more reputable online lender.
Quick Loan Don'ts
Borrow More Than You Need
Even if the lender is willing to approve a larger loan, avoid taking out more debt than you need. By taking on a more significant amount than you can comfortably afford, you risk making the debt unmanageable, which means it's much more likely that you could fall behind on repayments.
This could adversely affect your credit score, making it much harder to get future credit approval.
It will also affect the overall cost of the loan. By taking out more than you need, you may have to pay more interest—especially if the loan period is longer.
Avoid Repayment Problems
If you are ever struggling to meet your monthly repayments, for example, due to job loss, don't avoid the problem and hope it goes away. It's best to be upfront with your lender and speak to them as soon as you know you'll have a problem meeting repayments.
Lenders can give you an extension on your loan or even a repayment holiday if you're struggling. However, be sure to ask your lender for information on how it could affect your credit score. A repayment holiday may come up on your credit report, for example. Most lenders would prefer to work with you to help you make repayments easier than pursue legal action.
Miss Repayments
The worst thing you can do with any type of loan is miss repayments. Missed or late repayments will cause your credit score to dip, especially if you leave it for a long time without rectifying it.
Missed repayments are the last thing you want on your credit report because this indicates to future lenders that you are a high-risk borrower. As a result, prospective lenders will likely only offer loans with high-interest rates, making taking out finance much more expensive and complicated.
If you are struggling to make repayments, it's best to talk to your lender as soon as possible so you can work together to find a solution.
Apply for quick loans today
Following the above dos and don'ts, you can narrow your options and pick a great loan product that suits your budget and needs.
Are you ready to apply for a quick loan online? Consider using Jora Credit for fast access to the cash you need—and even same-day funding.
Learn more about Jora's installment loan option here. Or, if you're ready to apply, head over to our speedy online application to get started.