Just a few years ago, in 2018, only 23% of Americans said they had no debt whatsoever. A year prior to that, this number was 27%.
As you can see, it’s getting more and more difficult to achieve our life dreams without a little financial help. Loans can always be a good idea, so long as you know how to manage your money wisely.
If you need some extra cash flow to attain that next thing you want or need, then online consumer loans can be something to consider. In this article, we’ll discuss what they are and how you can get them.
What Are Online Consumer Loans?
First of all, let’s define what consumer loans are. Essentially, this is a general term for any type of borrowing for someone like you, a consumer. As you might guess from this, this means that this is a wide variety available for you to choose from.
Most consumer loans are unsecured, which means you don’t need to put down collateral to get the money you need. However, there are some that are secured, which we’ll discuss later.
Logically, online consumer loans are ones you can apply for and receive through the internet. This eliminates the need to go to physical locations to speak with lenders, apply, and find out whether or not you’re approved for a loan.
Naturally, many people are preferring to apply for consumer loans online rather than in person. Not only is it more convenient, but it also saves more time. You’re able to browse the terms of several lenders and determine which ones you’re interested in through a few clicks.
Types of Online Consumer Loans
Because “consumer loan” is a blanket term for a type of loan, there are many that fall under this category. Here are the common types of consumer loans you’ll find.
Personal Loans
Personal loans are also a very generic type of loan. You can borrow money to pay for anything, from your wedding to a home renovation.
You can take out either unsecured or secured personal loans. With secured loans, you can borrow anywhere between $25,000 to $50,000. Because you have collateral with secured loans, you can borrow much more (up to $250,000).
The repayment period is usually of a moderate length. Generally, you’ll have up to 10 years to pay back the full amount.
Student Loans
This is a type of consumer loan that many Americans have. This is an unsecured loan where you can borrow around $10,000 or more a year to pay for tuition and other school-related things, such as books, transportation, dorm or apartment, and even food.
Student loans usually have a special repayment period since it’s based on education. Some lenders will allow you to defer payments if you move onto post-graduate education right after. They’ll also let you defer payments after education if your income doesn’t meet a certain threshold.
Mortgages
This is another type of consumer loan many Americans have since very few people can afford to buy a house outright. This is a secured type of loan where you can borrow a massive amount of money (around $400,000 or more). The collateral here is your house; if you’re unable to pay, then the lender can take your property.
Understandably, the term length is a lot longer than with other consumer loans, as the amount borrowed is significantly higher. With most mortgages, you’ll see term lengths of around 15 to 30 years.
Auto Loans
Auto loans are consumer loans you take out specifically to purchase a car. These work very similarly to how mortgages work, which means they’re secured as well.
You can borrow up to $100,000 with auto loans and the term can vary between 2 to 7 years. If you default on your auto loan, then the lender can take your vehicle and sell it to recoup their losses.
Title Loans
Title loans are online secured loans that you take out with the title of your vehicle as collateral. It’s a quick way to get cash when you really need it.
How much you can borrow depends on the value of your car. While many lenders only give you 50% of your car’s value, some (like Car Title Loans California) can find you lenders that’ll give you up to 85%.
Compared to the other options on this list, the term length is very short. You’ll typically have 24 to 36 months to pay the amount off.
How to Apply for an Online Consumer Loan
If you’re interested in an online consumer loan, it’s very easy to apply for one.
First, search for a lender or broker you feel you can trust. Make sure to check out online reviews to see what their reputation is like.
Then, navigate to their online consumer loan application page. Fill in the information they’re asking for, such as your full name, email address, physical address, and information about your vehicle if it’s a title loan.
Once you’ve submitted your application, you’ll usually hear back very quickly. The majority of sites can notify you of approval within minutes! Online consumer loan approval is super-quick, which is great if you need money fast.
If what they’re offering in terms of loan amount, term length, and APR are all acceptable to you, then you can move forward with the process. Sign the online contract and you’ll get money disbursed to your bank account within 24 hours with most lenders.
Check Out Consumer Loans Online
After reading this article, online consumer loans probably sound like a wonderful idea. After all, you can get some money to pay off bills, buy a car, or pursue higher education.
Just make sure to go with a reputable lender and read the terms carefully. If you take your time to browse all your options, then you’ll have a higher chance of getting a consumer loan that has the lowest APR possible and other advantageous terms. With our advice, getting online loans is easy!
Are you interested in an online consumer loan? Then apply for one now. We can help you get a great title loan!
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