Find the Best Online Loans with Borrowell

Before applying for an online loan, there are some pros and cons you should consider weighing out. There are many reasons why an online loan may be the best financing solution for you. Here are the main benefits of an online loan:

• The online loan application process is easy and can take as little as 15 minutes

• No need to wait in person at storefronts or on the phone

• The approval process can be much quicker based on the financial information you provide, including your income and credit score

• The time from approval to receiving funding can be as little as 24 to 48 hours

Online loans also have some limitations. Here are the main ones you should be aware of:

• Online lenders with an automatic application process may reject borrowers with unique financial circumstances

• Depending on the online lender you work with, Interest rates can be higher than traditional lenders

• Some lenders have clunky online applications that aren’t simple to complete

• Some lenders require complicated steps to pay off your loan ahead of schedule

• Some online lenders may have spiffy websites, but below-average customer service

You can avoid most of the limitations associated with online loans by choosing a highly rated online lender. You can do your research to find the best online lenders by using Borrowell for free. Sign up for Borrowell to compare online lenders based on their product offerings, interest rates, and more. You can also instantly see your likelihood of approval for each lender based on your credit score. Gain confidence before applying for an online loan.

Payday loans are short-term loans (usually 14 days or one pay period) with very high interest rates (higher than credit cards) and fees. You can generally borrow up to $1,500, and you must pay it back at the end of the term. Some payday lenders offer their services totally online, while others require you to apply in person at their storefronts.

Online loans, on the other hand, have much lower interest rates (closer to traditional banks), much larger borrowing limits (up to $35,000), and much longer terms (usually between two and five years). You’ll pay back your online loan in monthly installments, and the application process is entirely online.

If you’re unsure whether the online loan you are considering is a payday loan, read the loan terms carefully. If the payback period is very short, it is most likely a payday loan and should be treated with caution.

The entire online loan process, from application to receiving your funds, involves 5 main steps:

1. Compare online lenders and pick one that’s a good fit for you

2. Fill out an online application by providing contact details and financial information

3. Get qualified and approved by the lender based on your application and your credit score

4. Finalize your loan details and provide your bank account information to the lender

5. Receive your loan within a couple of business days

Most online loans have a streamlined application process that is quick and easy, and usually only takes up to 15 minutes. You won’t have to wait in line at a branch or on the phone for hours. The application will usually require you to enter information on a few different screens, including:

• Name, address, and contact details

• Proof of identity such as a driver’s license

• Income information

• Details on any current debts

Once this information is entered, the online lender will pull your credit score from one of the credit reporting agencies in Canada (either Equifax or TransUnion). Using your credit score information and the details from your application, the lender will pre-approve you for a specific amount and interest rate. If you choose to accept the pre-approval, a loan specialist will contact you to finalize your loan, which may involve you sending them proof of income and a void cheque.

The application process takes about 15 minutes, and you should have final approval within 24-48 hours.

The majority of online loans do not have any special requirements. Most loans, both online and traditional, require borrowers to have a credit score of 660 or above. If your credit score is below 660, there are still loan options available. Sign up for Borrowell to see what loan options are available based on your credit score.

While most online loans do not have any special requirements, some online lenders offer specific types of loans that do have special criteria. For loans aimed at helping low-credit borrowers rebuild their credit score, the lender may require a co-signer with sufficient income to guarantee the loan. For loans of substantial amounts ($50,000 or above), the lender may require that an asset be used as collateral for the loan. 

If you have a good credit history, low levels of debt, and a reasonable income, you’ll have access to online loans that offer interest rates that are in line with those of traditional loans. If you are a riskier borrower, you may have to pay higher interest rates. For example, if you have bad credit, you’ll likely still qualify for an online loan, but it will have a higher interest rate.

Choosing an online loan through Borrowell is a simple three-step process: sign up to see the available loans and interest rates available to your credit profile, select your offer, fill out your online application and receive your funds within 48 hours. Sign up for Borrowell to find the right online loan for you. 

The world of online loans in Canada is quite large, and not every lender is right for your unique credit profile. While online loans can be obtained quickly and easily, finding the right online loan isn’t always straightforward. That’s where Borrowell comes in. Borrowell works with over 50 trusted partners to automatically match you to online loans suitable for your unique credit profile. Instead of searching for“online loans” and hoping for the best, Borrowell does the legwork for you and connects you only with trusted online lenders.

The process of applying for an online loan is straightforward and usually only takes about 15 minutes. After your application is submitted, you’ll have final approval for your loan within 24-48 hours. Application and approval timelines can vary depending on the online lender you work with.

Most online loans are available in amounts from $2,000 to $35,000. Some lenders may offer smaller amounts of credit (like payday loans), and other lenders might offer larger amounts (like secured loans).

Online loans are available in a variety of term lengths, similar to traditional loans. Most online loans will allow you to choose from several term options ranging from one to five years in length. Some online loans are shorter in length, especially payday loans.

One key difference between online loans and traditional loans is that most online loans are installment loans, which advance the entire loan amount to you up front. You’ll then pay the loan back by making regular payments to the lender. These payments are usually either weekly, bi-weekly, or monthly, depending on the loan agreement between you and the lender.

Just like any financial tool, online loans can either positively or negatively affect your credit score. There are many factors that influence your credit score. Payment history is one of the most important factors that influences your credit score and accounts for 35% of your Equifax credit score. 

If you faithfully make on-time payments to your lender, an online loan will positively affect your credit score, as it will help you build up your payment history. If you mismanage your regular loan payments, it can have a negative impact on your credit score. Missed or late payments will hurt your credit score - one missed payment could decrease your credit score by up to 150 points.