Too much has been said already about the impact of online lending platforms on consumer choices. While most of the concerns expressed have been from consumers who’ve had a negative experience with the lending platforms, the continued growth of digital lending platforms suggests otherwise. More and more people are now relying on such services because of the convenience they bring and the many benefits they come with.
There has been a significant change in financial services over the past few decades. Today, you no longer have to go through the ordeal of standing in long queues at the bank or go through a vigorous vetting just because you want to make a bank transfer. The digital credit revolution has made most, if not all bank transaction processes seamless. With your smartphone, you can now check your bank balance, deposit cash, and make bank transfers; all this at the touch of a button. The same applies when it comes to borrowing. According to the guys at Loanry, you can nowadays shop for different types of loans from different lenders all from the comfort of your home. Whether you need some cash to fund an emergency or you’re looking for a mortgage loan, car loan, or business loan, you’ll be spoilt for options.
As if this is not convincing enough, here’s how digital lending platforms have made things easier for loan seekers.
1. Super-fast and easy
Compared to the loan application processes in yesteryears where you had to physically present yourself to a potential lender, present a plan on how you intended to use the loan, and if that’s not enough, wait for approval, usually several days or weeks, using digital lending platforms is super fast. For starters, with such online-based services, you no longer need to be physically present in a lending institution. All the applications are done online with minimal documentation requirements and you can get approved within 24 hours or less. This means that you can spend your time drumming up for new and better opportunities. In addition to this, the application process is less demanding and it’s easier even to the less informed.
2. The best option when building credit history
For individuals with a credit score below 680, getting funded by a conventional lending institution is almost next to impossible. This is especially the case if you don’t have any persuasion skills or a sound business plan. If you’re therefore looking for the best ways to boost your credit score fast, then digital lending platforms are the way to go. However, it’s imperative to learn to pay your debts in good timing. Late payments are detrimental to boosting a good credit score. Always ensure that there is enough money to pay your debts on the due date. For those with a lower credit score, it may take time to raise them, but with consistency in paying your debts on time, you may get your blemishes wiped out as time passes.
3. e-Signing and intuitive mobile features
Today, the millennials make up almost a third of the world’s population. These are the tech-savvy individuals who spend most of their time on devices such as smartphones conducting and organizing volumes of activities both online and offline. It should therefore not come as a surprise to find that millennials are the people who access digital lending platforms the most. Most of the well-known digital lending platforms have e-signing features, which means that they’ll provide you with the same level of security provided by other platforms.
4. Collateral-free incentives
When dealing with a conventional lender such as a bank, you may be required to show some kind of a listed asset such as a car, home, or shop. This may be the only way to guarantee fast loan approval. Unlike a bank where you’ll be needed to show collateral, digital lending platforms use a different criterion when determining an applicant’s creditworthiness. In addition to this, it’s a short process that takes minimal time nonetheless, it generates precise and reliable results that are based on proprietary algorithms.
5. Availability of customer-oriented loan products
Most, if not all lending institutions have limited loan product variations. Some financial needs do not present much urgency. For such, most customers do not see the need to approach traditional lenders either because of the aforementioned limitations or for other reasons. On the other hand, digital lending platforms provide clients with customer-oriented loan products that are accessible and provide better repayment terms. In addition to this, they also offer other financial services such as advance loans and overdrafts.
In conclusion, the rise of digital lending platforms has been a source of financial aid not only to ordinary consumers but also to business owners looking for fast access to financial lending. This has seen struggling businesses grow and economies explode. With the many online financial lenders flooding the market today, it’s important that you find a lender who is best suited for your needs.