Have you received an offer for a quick online loan without supporting documents that you can sign quickly to meet your needs? If you’re worried that it seems too easy, before getting started, you should familiarize yourself with a few standard precautions that you can take.
While the quick online loan is a totally viable form of consumer credit that’s recommended in certain difficult situations, you should still understand how it works to avoid potential underlying difficulties. Here are the limits of quick online loans that you should know and monitor before giving your approval.
The $1500 limit
There’s a limit generally set at $1500 for quick loans online. Private companies offer to provide cash advances ranging from $300 to $1500. That’s why a quick online loan is quite suitable for your one-time money needs, for the unforeseen expenses of everyday life, and for financing all your little projects.
Loans granted under certain conditions
Taking out an online loan is faster and easier than taking out a bank loan, but you still need to meet certain criteria to be eligible. In particular, you must:
- Provide a valid chequing account for at least 3 months,
- Have a full-time job for at least 6 months,
- Reside at the same address for at least 6 months,
- Be paid by cheque or direct deposit,
- Not be bankrupt or subject to wage garnishment.
These minimal conditions are also safe for you. Indeed, beware of quick loan offers that seem too good to be true, especially those that don’t request enough supporting documents. While you may see an opportunity there, it’s also a potential risk for you and your future financial situation.
Compare the offers
As with any other loan — whether it’s a mortgage, a car loan, or a loan for construction or renovation projects, for example— a quick online loan commits you and must be repaid. To ensure that you have conditions that correspond to your situation, we recommend taking the time to consider the real usefulness of your project and to compare the offers proposed online by different companies.
Justified use of borrowed funds
When you apply for a quick loan online, you’re not required to provide proof of use of funds. The money borrowed can be used for many things, such as paying a bill, an unexpected expense, a need for new credit, or to avoid fees due to NSF payments. The cash advance company won’t worry about its use, strictly speaking. This major advantage compared to a loan from a financial institution requires, however, responsibility for the borrower to make an informed choice. Indeed, they must borrow these funds for a justified and controlled use to avoid going into debt unnecessarily and therefore returning to the starting point of their financial difficulties.
Duty of vigilance regarding the repayment terms
You should be extra vigilant regarding the repayment terms of this loan that are proposed to you, especially the rate of your loan. In addition to the nominal rate proposed to you, various fees, such as application fees or registration fees, may also be added. The rates of personal loans are set by private companies in total freedom. Being vigilant by comparing offers lets you avoid unpleasant surprises and repayment difficulties.