Applying for an online loan is a fast and easy way to borrow money for personal or business use. They’re convenient if you’re in need of funds and want to complete the application process from the comfort of your computer or mobile device.
Traditional brick-and-mortar banks are slow to process loan applications and tend to have strict qualifications. Not only can it be difficult to get approved through banks and credit unions, but it can also hurt your credit score every time you apply. Most online lenders will run a soft credit check to pre-qualify you for the loan so you can see offers without impacting your credit score.
The internet is a powerful resource, so it’s important you utilize it and do your research before accepting a loan offer. As you research lenders and loans, make note of their loan terms, Here are a few key questions you should ask about every loan:
Answering these questions will help you compare options and choose the best loan for your specific circumstances. For example, if you need $10,000 immediately, you know not to waste your time with a lender that only offers $5,000.
When applying for a loan, you must make sure the website has a valid SSL certificate to protect your private information. The easiest way to confirm the website is secure is to look for “https” in the website’s address.
First, you’ll provide only the basic information needed to get pre-qualified. In most applications, you’ll fill out fields asking for your name, address, income, the amount of the loan, the loan purpose, and your social security number. For example, see our online loan application.
Once you submit your application, you will receive a pre-qualification decision within fifteen seconds. If you are pre-qualified, offers will be displayed with the APR, fees, and loan terms.
Just because you are pre-qualified for a loan, it does not mean the loan is right for you. Be especially cautious of loans above 36% APR. We only recommend online loans with an APR below 36%.
After accepting a loan offer, you will have to verify your identity. Identification methods can include uploading photos of your driver’s license, utility bills, and pay stubs. This process should only be done through a secure online system.
At this time the lender may perform a hard credit check. Be aware that a hard credit check can negatively affect your credit score.
Finally, you will provide your bank information to receive the funds. Many lenders disburse funds as soon as the next business day.