Thanks to technology, everything you can think of is available through our smartphones, and loans are no exception! When researching your options, you will likely come across mobile loans—funding that you can apply for on your smartphone. According to Vantage Market Research, the Global Digital Lending Marked was valued at approximately $11.33 billion as recently as 2022.1
Below you will find everything you need to know about mobile loans and whether applying online vs. an in-person loan is the better fit for you!
What Info Will They Need for an Application?
- Your identity
- Income and ability to repay the loan
- Down payment requirements, if there are any
- Your residence
- Information about collateral if one is involved
- Your bank account information (for direct deposit purposes)
If approved, you can review the funding agreement and decide whether the right loan option is for you. If so, sign the funding agreement and get the funds. The money can be sent straight to a checking account in most cases.
What Kinds of Loans Have Mobile Applications?
There are all kinds of loans that provide the entire application process, which you can complete online. These loans are becoming so popular, the United State Digital Lending Market is expected to grow to $716.23 billion by the year 2028!2
Below is more information on the different types of digital loans.
Personal Loans Online
A personal loan is typically an unsecured loan that you repay in fixed monthly payments. You can find a personal loan at a bank, credit union, or private institution. Personal loans are versatile in their uses, funding terms and even flexible with credit score requirements. Loan term lengths can range from a few months to a few years. Because personal loans are some of the most popular funding options available, you will likely find multiple lenders that offer an application process that you can complete with your mobile phone.
Payday Loans With Your Smartphone
Payday loans are short-term loans for people with bad credit. Funding amounts for payday loans are usually for a few hundred dollars, and the borrower must repay it in a few weeks. Although payday loans are flexible for a poor credit score and are fast, they can come with extremely high-interest rates and hidden fees, potentially leading to a cycle of debt.
A Credit Card as a Mobile Loan
Credit cards are a form of revolving credit, in which funding amounts range from a few hundred dollars up to thousands. The amount you will get approved for and your interest rate will depend on your credit score and income.
Although credit cards can be convenient for multiple purchases, having multiple credit cards can lead to debt quickly. You will also have to worry about things like credit limits and the different fees if you have overdraft protection in place and accidentally spend more credit than you have. And so, before taking out multiple credit cards, learn about the various strategies people use to manage their credit cards carefully and avoid the potential dangers of credit cards.
Mobile Title Loans for a Bad Credit Score
Title loans are short-term loans. They are secured lending, which uses the borrower’s vehicle as collateral. This means borrowers risk having their vehicle repossessed if they miss payments or default on their loan.
How To Be Safe When Applying for Mobile Loans on Your Smartphone
Before applying for a loan, knowing the process and the average interest rates the loan type comes with is imperative. This knowledge can help you gauge whether a lender is fair and spot red flags with loans when they seem too good to be true.
|What To Do
|Know your state’s lending laws and basic federal laws
|Know some of the basic lending laws in your state, and stay away from any lenders who do not follow those laws/regulations.
|Do some research on the lender
|Check out past customers’ reviews and search for any consumer complaints. Verify how your information is shared or used—especially if you apply to a referral service that often works with a lender network.
|Take precautions when giving out personal information online
|Avoid all public wi-fi networks and public hotspots, only work with sites with encrypted servers. If you are applying through a computer, make sure it is a personal device; never use a public computer to apply for a loan.
|Update your operating systems regularly
|Whether your phone operates on iOS or Android, it is extremely important to make sure that you keep it updated as regularly as possible. These updates often include security patches that can help protect your personal information when you go online.
Emergency Cash Mobile Loans FAQ
Cash advance fees for mobile loans vary depending on the lender. Some may charge a flat fee, while others may charge a percentage of the amount borrowed.
Yes, mobile loans are often used for emergency cash needs. The speed of access to funds depends on the lender, but many offer same-day or next-business-day funding.
Fixed finance charges for mobile loans can include interest rates and origination fees. These charges are typically outlined in the funding agreement.
How much cash you can borrow through a mobile loan depends on several factors, including your credit score, income, and the lender’s policies. Some lenders offer small loans of a few hundred dollars, while others may offer loans up to several thousand dollars.
Some mobile loans require repayment by your next paycheck, while others may have more flexible repayment schedules.
A Mobiloans line is a line of credit that you can access through your mobile device. Unlike a traditional mobile loan, which is a lump sum of money that you repay over time, a Mobiloans line allows you to borrow as much or as little as you need up to your credit limit, similar to a credit card. It’s important to know that a Mobiloans line of credit is offered by a specific lender. You can access other types of cash similar to a Mobiloans line of credit via other financial institutions like a bank or credit union.
Yes, you can use the funds from a mobile loan to cover unexpected expenses. This includes things like car repairs, medical bills, or other unforeseen costs.
A Word From CreditNinja
Before you apply for any type of loan, CreditNinja encourages you to seek out your other options first. You may be able to save a significant amount of money on interest charges, application fees, and other loan expenses by seeking out other options like:
- Dipping into your savings account.
- Getting a temporary part time job to each some extra cash.
- Asking a trusted friend or family member for some emergency cash.
Check out the helpful CreditNinja blog for more information on online loans, saving money, and handling your finances responsibly!