Because most people do not have the necessary cash to properly manage all these expenses, the option that many users use is to apply for a loan. Traditionally, you had to go to a bank to access a safe, reliable loan with low interest rates . However, nowadays new technologies are on the consumer's side to offer them the ideal tool when applying for a loan: the online loan simulator .
If you have not yet used this free and easy-to-use application, in our Loan Simulator Guide we will explain its characteristics, advantages and other useful information so that you get the most out of this digital tool.
Characteristics of a Loan Simulator
Remember that although different areas to fill out appear on the form, we recommend that you only include those that are indicated as mandatory. This is the information that entities need to be able to process your application and that must appear in all loan contracts according to what the current legislation indicates .
A good online loan simulator should quickly calculate the monthly fee that must be paid when applying for a loan or credit. In addition, you must also include any expenses and the effective annual rate. With this data the user can check which company interests him the most according to his own needs.
When requesting a loan online, it is very important to master all the terminology used in this sector so that the user knows perfectly the terms and conditions of the loan; for example, that interest refers to the additional amount that will have to be paid to receive the money in a certain period of time.
Advantages of a Loan Simulator
- The best loan simulators only work with the best loan companies . Therefore, the user can be sure of accessing appropriate products according to their needs.
- This digital tool allows you to quickly compare available financial products . In addition to accessing databases of traditional banking entities, you can also use other business models that have appeared in recent years such as mini-credits or online loans.
- Using a loan simulator does not imply the signing of any contract . The user only receives useful information from different entities. If any of the options seem appropriate to you, pressing the corresponding button will redirect you to the desired platform so that you can continue with the process directly with the loan company itself if you consider it appropriate.
- In addition to receiving the typical information on the interest to be paid, with a loan simulator you can also get other details such as the management costs of each company, the possibility of extension or payment in advance, etc.
Is it better to ask for a loan online or go to a bank?
Traditionally the only way to get a loan was to go to a bank to begin a long process of paperwork regardless of the amount to be requested. This might be understandable for large loans, like a home mortgage. But frequently credits or loans are usually requested to face smaller payments such as a reform, going to the dentist, an advance for vacations or paying the mechanic's bill.
Online loan companies that have appeared in recent years simplify the entire process of these financial products by processing applications online, making the conditions more flexible and even offering free loans of up to 300 euros (without interest) to demonstrate the security and transparency of their services and products.
Online loan companies also usually offer additional advantages such as their Loyalty Programs in which users can reduce their interests or request extensions without penalty. In addition, all the procedures can be carried out from the mobile phone or tablet and currently there are online companies that offer loans of up to 60,000 euros.
In short, selecting one option or another will depend on the personal situation of each user. The important thing will be to carefully compare the options with a loan simulator to select the best alternative.
Aspects to consider when requesting an online loan
When selecting a company that meets your expectations after seeing its characteristics in a loan simulator, do not forget the following:
- Carefully review any account opening expenses or management fees.
- If the situation allows it, check the different interests according to the duration of the credit; You already know that the sooner you can pay your loan, the less interest you will pay.
- Determine if your nominal interest rate will be fixed or variable .
- If you have any questions, before signing a contract, contact customer service to verify any information.
- Some companies accept applications from individuals at ASNAF or other similar delinquent records. Likewise, even if you do not have a payroll, you can also request a credit online if a regular income such as a pension is shown.
- Among the requirements of online loans is specified to be of legal age and have a bank account.
- During the online credit application process, the user will have to verify their identity by sending copies of recent invoices and / or identity / residence documents.
- Some loan companies also allow you to bundle multiple loans into one to reduce interest .
- If the user anticipates that he will not be able to meet his monthly fee, the best action is to contact the company to negotiate an extension .
Jerome P Allison
I am a freelance writer and consultant for companies and individuals, with a particular emphasis on fintech, technology, startups and online marketing. More information