The Good and the Bad of Online Loans

Online loans refer to financing for consumptions that can be obtained without going to a bank agency. They are very convenient for customers looking to optimize their time and have money quickly to pay debts.

Online loans are ideal for clients with hectic life rhythms between work and personal life. But they also need to meet basic consumption needs without complications.

Do you want to know if an online loan suits you and how safe they are? Here we tell you everything you need to know.

Benefits of online loans

Online loans have multiple benefits that can be useful if you are looking for speed and convenience. But there are aspects that may not be as advantageous and you should consider before requesting them. Know the good and the bad of online loans.

Quick money in your hands

Online loans are usually processed smoothly, both the application process and approval are managed almost immediately. Depending on the financial institution, you can have the money in your account in a matter of hours or a few days.

No rows

It is common for banks to be crowded with customers waiting to be served, an inconvenient scenario if you have to take care of the work. When applying for a loan online, you will avoid having to wait long hours to deliver collections and finalize the process.

Few documents or collections

Being a procedure that is done online, the bank requests few collections. This means that it is limited to obtaining basic documentation to approve the loan. This is an advantage, you avoid tedious paperwork and it is easier to understand and manage the credit.

Sometimes you do not require an endorsement

It will always be uncomfortable to bother a family member or friend by asking him to serve as collateral for a loan. However, when applying for loans online the institution does not require this requirement and you can skip this step.

Reasonable deadlines to cancel the loan

Each bank has conditions that vary, however, most usually give comfortable terms to pay online loans. Check with your bank to see how comfortable and reasonable the payment terms are.

Linkage Request

As we have already mentioned, online loans generally do not require more requirements and paperwork. But some banks may ask you to link a payroll, hire a service or demand a seniority before giving you the loan.

Possible higher interests

Online loans are not necessarily cheaper than traditional ones, so you should check the conditions. Also, understand the bank rates for this type of credit, research well and choose the most convenient one for you.

Is it a personal loan or for your business?

One of the characteristics of online loans is that you can use them freely for your business or particular matters. So, if you have a personal emergency or you need a business credit, you can opt for online financing.

Are online loans safe?

Many are afraid that because it is an online procedure, security problems may arise with their data. If you feel identified in this regard, you should know that there is no reason to distrust this type of credit.

The Internet has revolutionized the way we perform our tasks and responsibilities, including banking with the aim of making our lives easier. Thanks to these advances, today it is possible to apply for a loan from the comfort of a smartphone or a PC .

The advantage of this factor is that we can have our personal data protected. Banks have specialized technological systems to guarantee the absolute confidentiality of personal and financial data of customers.

Is it necessary to have a credit history?

You see, with online loans it is not mandatory to have guarantees, but it is necessary to have a credit history. Do you know what this means? Just a record of your behavior as a customer.

The credit history contains all the information on how you have handled the financial instruments in your possession. For example, compliance or late payments, seniority with each product, etc.

What happens if I don’t have a good credit history?

The credit history serves to tell financial institutions whether or not we are reliable clients. If we delay credit card payments, we will be blacklisted where we will specify that we are bad payers.

If you have a negative record, the financial institution will most likely deny you the credit. The worst part is that efforts to try another bank will be in vain. Credit history information is provided by the Credit Bureau to the entire network of banks.

What to do to avoid having a negative credit history? The first thing is to keep your payments up to date. Use various credits, but with the certainty that you can cover all payments. For example, your credit card payments.

Do not apply for loans in a disorderly way, acquire the ones you really need.


Applying for loans online is certainly easier to process. You need fewer requirements and you can request them from the comfort of an electronic device, without spending long hours in a bank.

But online loans have other characteristics, such as having a good credit history. This is not necessarily negative, but you should know and take it into account before making your request.

The most important thing is that this financing modality fits your needs and fulfills its function. Evaluate the options offered by the market to finance you and make sure you are responsible for credit payments.

Do you already have credits and are you worried about being wrong with payments on time? Remember that in Small Lender we absorb the debts of your credit cards, so that you can pay in comfortable terms.

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