How Does a Loan by Phone Work?

How Does a Loan by Phone Work?

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How would you handle an emergency? You know the type. Your car breaks down, and you need it to get to work every day. To make matters worse, it isn’t a simple fix. Your mechanic tells you that your car needs a lot of work to get back on the road, but you don’t have that kind of money.

If you’re daunted by the idea of going into a bank and asking for help, nobody would blame you. Getting a personal loan the old-fashioned way takes time and face-to-face meetings that you may not be prepared for.

Luckily, there’s a more convenient route to funding available today. It’s through your mobile phone. You can research, apply for, and manage online loans over the phone.

What Are Loans Over the Phone?

A phone loan is a personal cash advance that does the same job as any other financial product. It advances you a fixed amount of cash that you must repay by a certain time, plus interest and finance charges.

What makes these loans over the phone different is how you go about getting them. Almost everything happens online, specifically over your smartphone. You apply for, receive, and repay your funds using your phone.

A financial institution such as MoneyKey hosts these financial products over a mobile-friendly website. You can use this site as a resource to learn more about cash advances before moving on to an online application.

If you apply for loans over the phone through MoneyKey, an application shouldn’t take very long to fill out, and you’ll know if you qualify shortly after. This speed at the start of your application process means the rest of the borrowing process can get started faster.

Don’t worry if you don’t have a smartphone capable of online browsing. Many financial institutions (including MoneyKey) offer the same kinds of loans online via their desktop websites, so you can apply from a computer at home.

What Are the Benefits of Getting a Loan by Phone?

Here are a few reasons someone would get an advance over the phone.

1. Convenience:

It’s simply easier to pull out your phone and fill out an online application on your smartphone. You don’t have to go anywhere, and you don’t have to follow business hours. In fact, you can find applications for some payday loans by phone 24 7, so you can apply or manage your advance anytime disaster strikes.

The alternative is going to a financial institution’s storefront location. There, you may have to make an appointment to speak with a financial advisor. And because these storefronts have bank hours, there’s a good chance you would have to take time off work to honor this appointment.

2. Speed

If you’re in a hurry to take care of a car repair or medical expense, a phone advance might be your answer. They have convenient and simple applications that you can quickly fill out whenever you get a chance.

Since you’ll receive and repay these funds online, you’ll also cut down on the time it takes you to deposit your funds. Online direct deposit loans via your phone take very little time to get cash in your hands. You can also set up automatic withdrawals from your bank to send payments for these direct deposit loans.

3. Availability

Depending on the financial institution, a phone advance may be available even if you don’t have the greatest credit. Short-term personal loans for bad credit may come with higher interest, so it’s important you check if this is something you can afford.

Bottom Line

If you have bad credit, are on a tight time crunch, or need something convenient, getting a loan by phone may be an option the next time you have a financial emergency.