Jul 30, 2015

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Misconceptions Shouldn’t Prevent You From Attempting to Apply Online for a Loan

Misconceptions Shouldn’t Prevent You From Attempting to Apply Online for a Loan

Online loans are a simple and hassle-free way to get money to cover short-term financial shortfalls, but consumers have a few concerns about them. The list given below is based on years of experience in serving local customers, and it gives answers to the most commonly-asked questions about online loans.

Is It Safe To Apply Online?

The experts recommend researching options before applying online for a loan. Check the following to determine how reliable a site is:

    • Ensure that the website URL is headed up with an HTTP: code, which signifies that the site is secure.
    • Look for security seals from companies like Norton, or SSL certificates
    • Determine how the site collects and uses sensitive information when a person wants to apply online for a loan

What’s Needed To Apply For An Online Loan?

Other than being over the age of 18 and being a US citizen, every lender has its own criteria for determining a customer’s reliability. Lender criteria usually include the borrower’s credit and employment histories and their income. If a customer meets those criteria, they can apply online for a loan. Customers approved for online loans can have funds deposited directly into their bank accounts, and payments are withdrawn every month as agreed.

Rates And Fees On Personal Online Loans

Fees and rates differ from one lender to another. The APR and maximum loan amount depend on factors like customer repayment and credit histories, state law, and the borrower’s employment status. Those with good credit histories are more likely to get lower interest rates.

What Kind Of Credit Score Is Needed For An Online Loan?

Every lender’s criteria is different, and some require higher scores than others. Acceptable credit scores tend to be between 580-720, depending on lender choice. Having a score in this range does not guarantee approval, just as having a score below the range does not guarantee rejection.

Does Applying For a Loan Affect Credit Score?

The answer depends on the situation. Pearl Harbor Federal Credit Union does a hard credit check that negatively affects the borrower’s score, but timely payments negate the effect. Some lenders only do soft credit checks that do not change credit scores, especially if the borrower finds a loan within 45 days after starting the search. Be sure to read the loan paperwork, terms, and conditions carefully before signing. You can follow them on Twitter.

 

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