5 Warnings Before Applying For An Online Loan

Posted on: January 19th, 2014 by

Getting a loan online is easier now than it ever has been before. Simply type in your search for the type of loan you are looking for and the search results will fill an endless amount of pages for you to review and choose from. But the main question is, how do you choose? Are too many choices a bad thing? Here are some tips on what to look for when getting an online loan and why each is important.

  1. Read the fine print – The main reason why people get themselves “upside down” in repaying loan debt is that they fail to realize the interest rates, penalties, etc that could be incurred should they be delinquent in paying the loan back. It is imperative that you fully understand what you are getting in to and what to expect. If you have questions that cannot be answered on the site you are applying for a loan on, move on to another site. Better safe than sorry.
  2. Legitimacy – Unfortunately, some sites aren’t reliable or as legit as others out there. Look for certificates on the site that confirm its authenticity. Check the Better Business Bureau as well before applying for a loan. Many times, if a site has a complaint, they will be listed there. Also, don’t be afraid to do a search online for the site name and see if any forums or tweets pop up that describe people’s experiences.
  3. Who is it?- Many sites have the appearance of a lender, however, they are merely a site that was built to deliver “leads” or potential applicants like yourself to direct lenders. Both direct lenders and comparison sites are beneficial, just don’t expect that you are dealing with a direct lender every time. Read the site, typically towards the bottom, and the verbiage should be there letting you know exactly who it is you are giving your information to on the site.
  4. Opting in- Thanks to SPAM laws, controlling spam and junk email has become a law and not as much as an incredible hassle as it was 10+ years ago. That doesn’t mean that you won’t be spammed however with email after email. Make sure that if you choose to opt in to receive updates and newsletters that you know the site’s policy on frequency and deliverability. You can always unsubscribe later, but if you’d rather not deal with the hassle, just refrain from opting in initially. You can always go back to the site and do it later.
  5. Security – Often, you will need to provide banking information as well as your Social Security Number when applying for a loan online. It’s important to verify the site you are on is secure. If you get any type of pop up warning that the site is NOT secure, I suggest you leave it and find another. You can tell in FireFox and Internet Explorer if a site is secure if there is a small padlock symbol next to the site name in your address bar.

Just be smart when you’re online. As they say, if it’s too good to be true, it probably is.

About the Author

Ryan Zimmerman is an online marketing expert and owns several helpful sites. http://www.thebestbadcreditloans.com/ is his newest venture, with hopes of teaching the online world about the best practices when searching for temporary financial solutions online.

  • http://www.facebook.com/gopa.kumar.7777 Gopa Kumar

    Take adequate precautions while going to apply loan online. Please go through the 5 basic suggestions of the author..Good information