Tips on applying for a loan on your mobile
Nearly everything is available to us at the simple click of a button. More and more services are now more mobile friendly than ever making a huge number of online services more accessible than ever!
With limited availability of finance and a growing number of desires, it is not easy to maintain a balance of costs. One has to borrow money from loved ones or have to seek financial help from banks. Of all the options available, loans are the best and most secure. The borrower checks all available options of the Loan Company, evaluates its performance, the conditions applied in approving the loan, and the time period for which it will be granted.
The online loan process
Credit Check: All direct lenders are required to carry out a credit history check; this is to assess your previous financial positions to see if you have a good history of repaying debts etc. They will also check to see if you have any outstanding loans or have recently applied for a number for a number of loans.
Interest rate: Each lending company has a different interest rate depending on its services. Some of them charge high while others follow government approved rates. If you would like to keep your personal loan within the budget, be sure to check the interest rate. You will pay for it in the long run, so make sure it is in your budget.
Legal formalities: The lending company must comply with all legal formalities in accordance with government regulations and the Financial Conduct Authority (FCA). You can read about them before contacting any company. Ask the loan provider to make everything available in the loan agreement documents. This will put you at ease by knowing that the lender is working within UK guidelines.
When applying for a loan on your mobile, the process is very easy and straightforward. You will need to complete an application form, depending on the direct lender you choose to apply with. The application form will capture information such as your personal details, monthly income and outgoings, address and reasons why you are applying for a loan.
This is all information that you should have to hand, so there is no reason to have to go into your local bank to demand 6 months’ worth of bank statements. When applying for a loan online it is also important to provide the lender with all the correct information as incorrect information can cause delays to the process.
What can i use an online loan for?
There are a number of reasons as to why an individual would need to apply for a loan, like a car or a house, or maybe university? UK Direct lender Lucky Loans have stated that the most common use of a loan is to cover emergency and unexpected costs that affect people’s cash flow.
Unless you have carefully planned and saved money, you will probably need to apply for a loan. Obtaining approval is largely dependent on your credit history and current financial situation.
When it comes to unsecured loans, lenders are much more sensitive to your credit history. This is because the liability of repaying the loan is solely on you, meaning that there is more risk for the lender. If you have an application submitted but the lender rejects your application, this could be for a host of reasons, more than likely due to your credit rating. However some lenders will also offer bad credit loans, although this may come with a slight increase in interest rates. This is because they perceive you as a high risk. On the plus side, if you make repayments on time, you are helping to repair your credit and the next time you apply for a loan you can get better terms.
However, it can increase your chances of being approved if you decide to apply for a secured loan. The loans secured by the bank require the borrower to provide collateral against the money.
To apply for a loan online using your mobile phone, you will follow exactly the same application process as you would when applying from a desktop of a tablet. Your data will be kept secure as all UK direct lenders have to ensure that their application forms are fully encrypted meaning that your personal information is kept safe and secure. All online loan applications will provide you with an instant decision, so you will not be kept in the dark on whether or not you have been accepted for a loan or not.