Originally posted on https://bonsaifinance.com/safety-and-efficiency-a-users-guide-to-applying-for-online-loans/
In 2017, online lenders accounted for 36 percent of all personal loans. This number rose from 1 percent back in 2010 due to the ease and benefits of requesting online loans.
Have you applied for an online loan? Maybe you heard about applying for loans online but aren’t sure if an online loan is your best option. You might think these require a complex application process.
Yet, that’s far from the truth. Applying and getting your loan online can be easy, safe, and fast. But, you must know the basics about the process and what you must do to get the funds you need while protecting your personal information.
Want to learn if an online loan is right for you? We’ll discuss must-know facts about the online loan process and how to get yours safely today. Read on to learn more!
Applying for Online Loans: Everything You Need to Know
Getting a loan can often turn into a hassle. Yet, requesting small personal loans online is the best option when you want easy and fast funding. Before applying for any loan, it’s important to research your potential lender.
Has the lender been in business for some time? What are their loan rates and terms? Getting pre-qualified at the lender can provide insight into the terms and rates you are eligible for.
Most lenders do soft credit checks during your prequalification process. But, it’s important to ask the lender to make sure your credit score isn’t hurt when you get prequalified. Also, you should consider reading customer reviews about their loan products.
Every lender has their own online loan process. Their requirements may vary due to their lending requirements. But, there are two basic steps when you apply for loans online.
1. Fill out the Online Loan Application
All online lenders have an online application in their portal. You must complete it to begin your online loan request process. These applications ask for your basic information such as full legal name, contact information, employment status, checking account, among other details.
Most lenders will also ask for your social security number to check your credit. If you already know you have a low credit score, you may consider applying for a personal loan with no credit check, where they give more weight to your income level and ability to repay the loan.
Keep in mind that most lenders won’t allow you to apply if you don’t own an active checking account. The lender needs this information to deposit your funds.
2. Gather and Submit Your Documents
After you complete their application, your lender will ask for documents verifying this information. Some of the documents they may request are a copy of your current legal ID and proof of income such as W-2 or pay stub.
Some lenders may provide funding if you are unemployed but only if you receive income such as Social Security benefits. In these cases, you will include this income information and provide verification documents. Every lender and loan process may vary on a case by case basis.
Is It Safe to Apply for an Online Loan?
Yes, it is safe to apply for an online loan as long as you request it at a legitimate lender. You might be asking yourself, but how can you find a reputable lender? It’s easier than you think.
An online search will put you in front of many lenders and lead generators. You must be careful not to give your information to the latter. These companies resell your information to lenders.
To stay safe while applying for online loans, it’s essential to do your homework. Look for lenders that work with you and stay away from companies that seem untrustworthy.
Want to learn where to find a good online loan? Check our article for helpful tips to find the right online lender today.