Your smartphone is more than just a camera, gaming gadget, and communication device. Today, it’s a means to borrow money when you need financial assistance. With a few simple taps of your screen or a short phone call, you can apply for a loan from the comfort of your home.
If you need a loan today, keep reading. This article is here to tell you everything you need to know about this convenient process, plus all the benefits of borrowing over the phone in an emergency.
What is a Loan by Phone?
Let’s set the stage by talking about what it isn’t. Not too long ago, you would have to walk through the doors of a financial institution if you wanted to borrow money. You would have to stand in line, talk to an advisor, and fill out an application by hand.
A loan by phone flips this old-fashioned experience on its head. Instead of walking to a physical location, you can turn on your smartphone and visit a lender’s website. If you like what they offer, you can fill out an application online to see if you qualify.
Some lenders might reach out to you at this point, calling to verify your information. Others will rely entirely on their dedicated app, email, or SMS to square up your application. Once everything is settled and you’re approved, you’ll receive your funds via direct deposit.
What Are the Advantages of Getting a Loan by Phone?
First and foremost, convenience is the number one advantage of getting a loan by phone. Nowadays, applying for a loan is as easy as ordering a pizza online for delivery. You can start the whole process with just a few taps and some personal information.
You can apply anywhere and any time you get the Internet. And, if you’re approved, you have on-demand access to your profile to review your loan contract or payment schedule.
This instantaneous oversight is another advantage of this kind of loan. There’s no guesswork involved when you have quick access to your account 24/7. Plus, online lenders offer expedient customer service during their normal business hours to answer any question you might have.
Timing is another perk to using your phone for a loan. When you apply, receive funds, and repay your loan electronically, you can speed through the lending process faster than if you did it all in person. You don’t have to travel to a physical location across town every time you want to transfer money. Instead, you can accept funds and make payments with the tap of your finger.
What Should You Look for in a Loan by Phone?
Getting a loan over the phone is fast, convenient, and easy, but it’s still borrowing money. That’s a big decision, no matter what platform you use. To make sure it’s the right decision for you, go through the list below.
- Research the different types of loans offered (installment loans vs. lines of credit).
- Compare the rates and terms provided by individual lenders.
- Use a budget to see how easily you can cover your payments while juggling other bills.
- Consider the repayment schedule carefully. Avoid short payback schedules that stretch your budget too thin.
- Read lender reviews on Finder, Trustpilot, and Sitejabber.
- Confirm privacy and security policies are up to snuff.
And there you have it — everything you need to know to get started. Keep these tips in mind to find the most favorable option available to you today.