If you’re looking to get financing in modern day times, chances are you’ve considered looking at online options that are available to you. Modern technology has helped bring the finance sector forward in just a short amount of time. Despite changes in technology, one of the most popular forms of finance continues to be personal loans. People continue to use personal loans to make a variety of purchases or to refinance their current debt at lower rates.
More and more people are heading online to apply for these loans. But if you’ve never applied for finance online, you might find this process slightly intimidating. It can be strange handing over personal information via the internet, so you need to be certain that you know exactly what you’re doing. If you’re not nervous about applying for online financing, but you still want to learn more about the process, this page will also be great for you.
We’ve created this guide to help people have a more pleasant borrowing experience. We want our readers to understand the benefits and drawbacks of personal loans online. If you’ve ever had any questions about this unique industry, our guide is sure to answer all of them. Make sure to read through all the content provided on this page before making any decisions.
A Changing Landscape
Personal loans online are the product of a changing lending landscape. Previously, people would walk into banks and apply for financing directly through a lender. This process was personal, but it also took a considerable amount of time. You would normally need to bring multiple forms of ID, proof of income, and a variety of other complex documents. After the lengthy application, you might then need to wait days or weeks to get any outcome from the lender. If you were rejected, you’d have to start the whole process again.
Now you apply in a matter of minutes. Everything can be done online and you don’t have to worry about waiting for a decision – you’ll typically receive one in just a few minutes. This is because of the amount of data that many lenders have available to them. Whether you like it or not, lenders can get a pretty good idea of what kind of borrower you are without needing to ask you any questions. This allows them to make much quicker lending decisions and provide all the services to you directly through the internet.
Applying for personal loans online isn’t for everyone. There are still plenty of people who don’t enjoy using the internet to make financial applications or other financial based decisions. This is fine. Many lenders still offer you the ability to go into a branch and apply for a loan with a bank representative. While many have been shying away from this, it’s still an option. We suggest you get the process started sooner rather than later, you never know when they’ll move everything online!
Applying for Personal Loans Online: The Process
The process for applying for personal loans online is extremely straightforward. This is why more and more people have begun to apply directly online. In this section, we will give you a quick walkthrough of what you should expect if you do decide to apply online.
Step 1: Choose a Lender
This is the hardest part of the process. You need to have a look at a variety of online lenders and see which one is most suited to you. You don’t want to work with a lender that has a bad reputation. There are plenty of online personal loans companies that have bad reputations within the borrowing community – steer clear of these operators. Remember, if someone has had a terrible experience with a company, there’s a high chance that you will as well.
The best way to cross reference whether or not a lender is a good company to work with is to head online and look at different consumer watchdog sites. You’ll find that both Consumer Affairs and the Better Business Bureau provide a great platform for people to review lenders that they have worked with. Make sure that a company scores well on these sites before you decide to work with them.
Step 2: Head to Their Application Portal
After you’ve decided which lender you want to work with, you should head to their website. There you will find their online application portal – this is typically accessible from the homepage of the website. Indicate that you would like to apply for a loan. This is the time where you can browse around the site and find the answers to any questions you might have. If you still have any questions that have gone unanswered, don’t hesitate to call the lender’s customer service team if you find that you are confused about anything.
Step 3: Submit Your Information
Once you begin the application, you will need to input your information. This will typically include your name, address, education, SSN, birth date, income information, employment information, and a few other details. You might need to upload documents, but you can do this directly through the website. You will also need to outline how much money you’re applying for.
This is not a credit card application, you will need to specify the amount of money you’re looking to get.
Step 4: Wait for a Decision
After you’ve finished the application, it’s time to wait for a decision. Depending on the type of lender you’ve decided to work on, the time it takes to find out can vary. You will want to try and find a lender that can get you an instant decision. If you do have this type of a lender, your decision should appear on the page after the application within moments. This is especially true if you’ve applied for a small or medium amount of money.
Step 5: Get Your Cash!
This is the final step. If you’ve been approved, you’ll have to provide your bank details so that you can receive the money that you have been approved for. Many online personal loans can be given to you within 24 hours of your approval. Meaning that the money will be in your account within a day of you finishing the application. This is another great benefit of working with many online lenders.
Security: Better Online
A great feature of many online lenders is the fact that they have much more secure lending processes. You can apply through the internet, so you don’t have to worry about putting personal information on a paper application. It can be a bit unnerving having to put your personal data on a paper application and turn it into someone you don’t know. You never know who could end up using your Social Security Number of other important information.
There’s actually a way to improve a fair credit score extremely quickly. You should make sure to try and do this before you apply for any loan. It might not work for everyone, but the majority of people will be able to improve their score a bit before they apply for a loan. Even just a few points will help you improve your chances of getting personal loans for fair credit. Follow the tips below if you want to have a higher chance of being approved for a personal loan.
Check Your Credit Report
While many people know their credit score, few people have a deep understanding of their credit report. Your credit report is much more detailed than your credit score, it contains all the items that dictate what your score is. If you don’t know what these items are, then you don’t understand why your credit score is the number it is.
What many people also don’t know is that there are often mistakes on people’s credit scores. These mistakes arise from a variety of problems associated with the reporting industry. If you check your credit report and it has mistakes on it, you can request that these mistakes be removed. This can have a drastic impact on your credit score. Each reporting body in the United States is legally required to give you one free credit report per year, so head online and request one – the sooner, the better.
Use a Credit Repair Company
If you don’t have any success with the first step in this credit improvement journey, you can contact a credit repair company to help you improve your score. There are plenty of reputable companies that will only charge you if they’re able to get you results. Many of these companies have had success at improving scores across the nation, they’re a great option if you have some money to invest in your credit score.
Reduce Your Current Credit Card Debt
The least complicated and most sure-fire way to improve your credit score is actually just to reduce your current credit card debt. One of the biggest components of any score is the amount of debt you are carrying your credit card. This is calculated as a percentage of your credit limit being used. Your balances are updated monthly with the credit reporting bodies, which means that you never have to worry about waiting too long to see an improvement.
If you can afford to pay some of your credit card balances down, this is a great way to make sure that you improve your fair credit score quickly. It will sometimes improve your score up to 90 points!
The Advantages of Online Personal Loans
After reading this article, you probably have a pretty good idea of whether or not you want to apply for online personal loans, but it can still be hard to take all the information in at once. Spreading all the needed details across a long article helps us better explain certain key concepts, but sometimes you might want to see things from a bird’s eye view. That’s why we’ve created this section to give you a more acute understanding of the benefits of personal loans online. Check out the advantages below.
- Quick – The biggest advantage to online personal loans is simply the convenience. It’s the easiest type of loan to apply for as it only takes a few minutes. You don’t ever have to leave the comfort of your own home to apply for a loan, which makes this an extremely attractive form of loan.
- Safer – Data is transferred over the internet. Many lenders encrypt the data that they receive which means that you don’t have to worry about it ending up in the wrong hands. In an age where Identity theft is an increasingly large problem, this is a benefit you will most likely welcome.
- Choice – There are way more online lenders than traditional lenders, meaning that borrowers have a ton of choice when it comes to who they want to work with. This means that you have plenty more options than you would have had in previous times.
- Electronic Transfers – Many online lenders use electronic transfers to try and speed up the process of getting you the funds you need. This means that you will often be able to get your money in as little as 24 hours when you’re approved for financing.
The Disadvantages of Online Personal Loans
While there are obviously many advantages to getting online personal loans, you’ll find that there are also a few drawbacks. We will discuss some of the negative traits of this type of financing below.
- Not Personal – With an online application, you can’t ask personal questions about the loan with a representative in a branch. This means that you might feel as though you are less informed about the financing choice that you’re making. This is one of the major drawbacks of online personal loans.
- Finding Trustworthy Lenders – Because there are so many lenders operating in this space, it can be hard to tell if lenders are trustworthy. With traditional banks, many of the lenders have longstanding reputations in the industry that make you feel safe about working with them. This isn’t the case with personal loans online. You don’t want to work with a lender that has dodgy terms and tries to cheat you out of money.
If you’re looking for personal loans online, you’ll be pleased to know you have hundreds of different choices to look through. This might seem like a bit of a pain, but it means that you’ll end up with a really competitive rate and a lender that knows the value of treating customers well. Just make sure that you only work with companies that have awesome reputations. If you see a red flag, it’s probably worth paying attention to.
If you want to get a jump start on finding the right lending partner, you should head to our homepage and check out the lenders that we suggest you work with. It’s much easier to choose a lender if you already know who the reputable ones in the industry are. You don’t want to start in the dark. Make sure to cross reference any suggestions with consumer watchdog groups.
Applying for personal loans online is meant to take the hassle out of the experience. So, make sure to approach it with the intention of un-complicating your life, not complicating it. Don’t apply for multiple loans at once – this is a mistake many people make and it damages their credit scores!
Getting personal loans online may be a relatively newer service offered by lenders, but it is surely rising as one of the top choices of people needing quick cash. Find out more about online personal loans through your most frequently asked questions as divided in to the following sections:
- General Information on Personal Loans Online and Process Concerns
- Getting a Personal Loan Online
- Companies Offering Personal Loans Online
- Online Personal Loan Lenders Recommendations
- FAQ on Personal Loans Online
General Information on Personal Loans Online and Process Concerns
Aside from they’re done online, how does online personal loans differ from your regular personal loans? Through the questions below, this question as well as arising process concerns would be answered.
Is it legal to get loans online?
Yes, it’s completely legal. In fact, even some traditional banks allow online applications for some of their loan products.
How do online loans work?
It works exactly the same way as a loan applied for in-person. The only difference is you submit the requirements online as an electronic copy.
Do online loans really work?
Yes. With online lenders, the process is usually faster as well.
Is applying for a loan online safe?
Definitely. However, make sure that you’re giving all your information to legit lending companies.
Are online bad credit loans safe?
Not all of them, so ensure that the loan grantor is legit before applying for a loan. Also, expect higher interest rates.
Will an online loan affect my credit score?
Yes, it will affect your credit score in the same degree as a regular loan. To make sure that all your efforts to pay on time are reflected on your score, ask your potential creditor to which credit reporting agencies they report to.
What is the easiest online loan to get?
A payday loan is the easiest to get due to quick approval rate and almost absurd interest rates.
What if I default on my online fast cash loan?
It will reflect on your credit score. Your lender may also sell your debt to companies who can be very persistent with getting their money’s worth.
What do I need to apply for a loan online?
Most lenders would have the same requirements: your bank account, your personal information, and your financial information. You’d need to check with your lender if there are any specifics that you’d have to provide.
How do I check my loan eligibility online?
Most lenders have incorporated their loan eligibility calculator as part of their websites. Online lenders are also more transparent on their requirements so if they don’t have that, you’d at least have an idea of your odds of getting the loan.
What happens when you submit a loan application online?
When you submit your loan application, it will be processed. Your lender may also require you to submit additional requirements as a requirement for approval.
How long does an online loan application take?
With online lenders, it only takes days for your process to either be rejected or approved.
How do you pay off your loan online with signet?
Go to this link. There, you’d need to provide your login details to log in or your account number and zip code and click ‘Pay Now.’
How do I access my loan balance online?
The specifics will slightly differ from one lender to another, but what you’ll do is generally the same: log in to your account, look for a section indicating existing loans, then look for the balance.
How do I get an online loan sent to PayPal?
Choose a lender that supports that way of disbursement of funds. You may also apply for a loan directly from PayPal through PayPal Working Capital.
How do I find my federal loans online?
Sign in to My Fed Loan. There you would be able to view your account details which include your total loan balance and the status of all your loans.
How do I calculate the interest rate on a loan online?
Your interest rate is one of the more basic things that your lender is required to inform you of when you get approved for a loan. So, there’s no need for you to calculate it.
Getting a Personal Loan Online
Here, all your concerns related to getting a personal loan online would be discussed.
How do I get a loan online?
First, make sure that you meet at least the minimum requirements set by the online lender. Then, look for a button which reads ‘Click here to apply for a loan now’ or anything to that effect. Lastly, follow the instructions and provide the information asked of you in the proceeding pages.
How do I get a loan online with bad credit?
Choose lenders that cater to people with bad credit such as BadCreditLoans.com. With such lenders, your chances of approval are much higher, but it comes with a higher interest rate and lower loan amounts.
How do I apply for a bank loan online?
While most banks do have a website nowadays, not all of them allows you to apply online. But if they do, simply go to the ‘personal loans’ page where you’ll find details on its features as well as a button which will direct you to its loan application page.
How do I get easy loans online?
The relative easiness of getting any kind of loan lies mostly on your credit rating. So, when you apply, opt lenders whose minimum requirements your profile exceeds.
How do I get a loan fast online?
The major thing is to go to companies that have quick processing and approval times. Also, giving complete requirements can help quicken the process.
How do I get a loan online with no bank account?
Go for lenders that won’t need your bank account to transfer your funds. You can start with this list and apply.
How do I apply for a small loan online?
Getting smaller loans are much easier as it’s less risky. However, make sure that lender will allow you to borrow that small an amount first before proceeding with the actual application.
How do I get free loan online?
A free loan is essentially a grant. So, look for grants that cater to your industry and submit everything they ask for. As this is free money, there’s no guarantee that you’ll get it.
How do I get a cash loan online?
Also known as a payday loan, getting a cash loan online is a very hassle-free process. HonestLoans, LendYou, and CashUSA are all viable options for this type of loan.
How do I get a secured loan online?
It’s no different from getting any type of loan online; it’s a matter of finding lenders that offer secured loans. LightStream and OneMain Financial accept an auto title and a paid-off car respectively as collateral.
How do I get a loan online with no credit?
Even creditors with the lowest minimum requirements would do a soft pull on your credit before granting you a loan. If there’s nothing to pull at all, go for credit builder loans such as that offered by Self Lender.
How do I get a loan online without a job?
If you have other sources of income such as a small business or financial support from a relative, you may use those as proof of income when asked for one.
How do I get an instant loan online?
While there are companies that promise funding in minutes, all loans are still subject for approval. There’s no such thing as an ‘instant’ loan unless you’re willing to pay extremely high rates such as with payday loans.
Companies Offering Personal Loans Online
If you’re eyeing a certain bank or company to grant you a loan, you may find below if you can apply for one as well as the steps and the link where you can do so.
How do I apply for a USDA loan online?
Go to this link and log in using your Level 2 eAuthentication ID. Once you log in, you will be able to access loans and apply for them.
Can you get preapproval for USDA loan online?
Yes and no. The same site you would access using the link from the previous question allows you to assess your potential eligibility for different types of loans.
How do I check my Citibank personal loan application status online?
You can’t. However, you may call 1-800-745-1534 to check your application status. You’d need to provide your reference number to do so.
Can you apply for a Chase personal loan online?
Unfortunately, Chase no longer offers unsecured loan products, including personal loans.
Online Personal Loan Lenders Recommendations
Below are recommendations on personal loans based on existing reviews.
What online loans are legit?
A lot of them are. But to be sure, you may refer to recommendations from different reputable websites such as The Balance.
Where can I get a quick loan online?
Finder has a list of great options where you can get loans. Most of the lenders in the list has a 1 business day turnaround time.
Where do I apply for a personal loan online?
It’s up to you. You have a choice among peer-to-peer lenders, credit unions, and traditional banks. However, for the latter two, some of them don’t give you an option to apply online.
Where do I get a loan online with bad credit?
BadCreditLoans.com and OneMain are both terrific places to get a personal loan if you have bad credit. While interest rates are still higher against applying with a better score, they’re still much lower compared to payday loans.
What are the best online personal loan lenders?
The Simple Dollar listed a few loan sources depending on your credit rating. Of course, those with excellent credit are able to borrow generally larger amounts compared to those with fair or bad credit.
From the prequalification process to the means for applying for a loan, your questions about the general nature of online personal loans will be answered below.
Where do you get online prequalification for loans?
You may access the prequalification form through the lender’s site or through the third-party seller. As it is a fool-proof way for these creditors to get customers, it won’t be hard for you to find.
Can I do the loan request form online?
Possibly. However, most if not all loan grantors online do not require a loan request form and goes directly to the application.
Should I apply for a loan in person or online?
Whether you apply online or in person, your loan would still be declined or approved based on the merits of your application. So, choose whatever is more convenient to you.
Robert is our in-house expert on personal loans and finance. He got an MBA, specializing in Finance, before joining the workforce. After working for multiple Fortune 500 companies in the past decade, he brings a wealth of knowledge and experience to the table.