Online Alternative Lending Options for Millennials
Millennials know a lot of things when it comes to online debt. They regularly apply for a wide range of loans from online institutions to satisfy different financial needs. Here are the most common online alternative lending options among millennials.
Online Banks for Personal Loans
Online banks enhance convenience and offer better rates. Most online banks have personal loans that suit everybody, including those with good and bad credit histories. The better rates associated with online banks means that you can get a loan while keeping your borrowing costs low. The loan application process is simpler and faster than local options. Some banks even approve loans in seconds, as long as you meet their requirements. You will be required to open a bank account to share your information and electronically sign a form that shows that you agree with the applicable terms and conditions. Other providers allow their clients to choose where the money will be deposited.
Title Loan Lenders
A title loan provides you with a fast alternative to get cash during emergencies. Car title loans are the most common types of title loans in the US. Most title loans are based online. You simply go to a trusted dealer’s website and fill out an application form. The form may require you to give out the details of the car to be used as collateral. This includes its registration number, year of manufacture and mileage. You will also be required to provide your personal contacts and home address. Upon completion, you will be provided with a loan estimate. The lender will then send a representative to evaluate the car at your convenience. Title loans often take minutes to mature. You can qualify for a title loan even if you have a bad credit history. However, you must prove that you are the outright owner of the vehicle used as collateral.
Online Peer Lending
Peer-to-peer lending allows individuals to lend without the use of an official financial institution as an intermediary. It is the most common form of lending available online. The borrower makes a request to a peer-to-peer lending site. Once the lending site approves the loan, it is placed on the platform for someone to invest in it. This type of lending is suitable for those who cannot qualify for traditional loans. It is also a great way to consolidate your credit card. Peer-to-peer lending sites offer loans up to $35,000 and feature terms up to five years. The loans are far much cheaper than credit cards.
Microloans are popular among small businesses. They usually range from $1,000 to $35,000. There are some lenders who allow up to $50,000, but you have to prove beyond any reasonable doubts your capability to repay the loan as required. Online micro loans require at least a personal guarantee from the borrower. Micro loan sites offer better payment terms and do not let you borrow more than you can afford. You can try out microloan lending sites like Kiva, Opportunity Fund, Caccion USA or local economic development organizations near you.
Your own bank may have online loans. However, online loans provided by local banks have higher interest rates. It is important to contact the bank’s credit officer to know the rates and requirements. In most cases, you will be required to open a secure internet portal where you can access all the information related to your local bank account. The portal will have to be authorized by the bank officials before it becomes active. You can then choose from a wide variety of loans available. These loans take minutes to process and have short repayment periods.
Millennials know how hard it can be to manage debts, especially in a less stellar economy. The lending options discussed above can make a big difference. There are plenty of websites out there that allow you to get the cash you need in a timely manner.