How FinTech makes it easier to borrow money
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Borrowing money isn’t fun at all, but where you go with a line of credit can make your borrowing experience easier.
Sometimes it is necessary to take out a loan. You lose your savings or find yourself in a difficult period that makes it difficult to manage an unforeseen medical expense or auto repair. So you are considering applying for a Line of Credit (LoC) to help you run your business.
You can do it the old-fashioned way by walking into a financial institution and asking for help, or you can improve your financial game to fit the 21st century. By going online, you unlock all the benefits of FinTech.
4 benefits of borrowing money online
FinTech is a portmanteau of the words Financial and Technology, and it describes any technology that supports financial services. When it comes to your borrowing options, it describes direct online lenders and other financial institutions that offer digital letters of credit.
Here are four advantages of using them over in-person alternatives.
1. Practical comparison
Traditionally, comparing the rates and terms of several lenders involved making one-on-one visits or phone calls to a bank. But since FinTech lenders operate entirely online, they post this information conveniently on their website.
It’s a plus if you live in a city like Memphis, which is known for poor traffic and even worse for public transportation. No need to take the time to drive or take a bus to get around the city. You can click 20 tabs if you want, comparing rates side by side from the comfort of your home.
2. Local options
There is always a fear that by going online you will lose the personal touch. You go from a local bank to a large corporation with offices all over the world.
While some companies operate this way, many others offer localized options. This can help you narrow down the options you need to compare. By focusing on Easy Tennessee Online Loans, you will be interacting with Memphis, TN lines of credit instead of an international online lender. In this case, easy refers to the application process, which can be completed from the comfort of your own home in just a few minutes.
3. General conditions of eligibility
FinTechs have changed the way lenders assess your creditworthiness. Previously, your credit score had the final say on your approval. If you had a low enough score, you would be refused.
With FinTech, lenders can further assess your financial history in a fraction of the time it takes for those old underwriting processes. As a result, some online direct lenders will compare your credit score to your income, debt-to-income ratio, and employment status.
This is good news for people recovering from bad credit. If you can prove that you can afford to pay back what you owe, direct online lenders can approve loans online despite your score.
4. Quick and easy applications
Paperwork is a necessary evil with any loan application, but the FinTech world tries to keep the amount down.
Online applications are quick and easy to complete, as long as you have your basic contact details and financial information handy. It’s as easy as knowing your address, social security number, and bank account number.
Borrowing money isn’t the most fun you’ll have in life, but you can make it easier for yourself by going online. Take the time to compare your options to see if FinTech offers the right solution for your needs.