Online loans have disrupted the conventional banking system in the best possible way. With the internet giving a platform for small independent lenders to promote their services, consumers now have more options than ever before. The big banks and credit unions offer stability, but will bury you in red tape, and make you wait weeks on end for your funds.
Online loans changed the game. They allowed for faster loans, and an application process done entirely online.
Before applying for any online loans, consumers need to be aware of some basic ground rules, so they know a red flag when they see one!
One Lender at a Time, One Loan at a Time
This is not a suggestion, it is a federal law. You cannot take out more than one loan at time, even through separate lenders. Once an online loan has been repaid, you are eligible to borrow again. Even now, there are new laws being discussed that would mandate a “waiting period” between loans, but that remains to be seen.
The Bare Minimum
No matter what kind of loan you are looking for, online or off, always stick to the bare minimum. The best practice is to never, ever borrow more money than you need, or that you can expect to pay back. It may be tempting to borrow the maximum of what is offered to you, but resist this temptation! The smaller the loan, the less the interest you pay, and the easier it is to repay.
Play it Safe
Is your financial and personal information being protected? You never play fast and loose with your private information in real life, so you won’t do it online either. To ensure your privacy is safeguarded, make sure your lender is using encryption.
A website that has a URL starting with HTTPS means that Google verifies that the site is secured. It is safe to submit your information through this site.
If the site URL starts with HTTP, look for online loans somewhere else!
Maintain Your Own Files
One of the best aspects of online loans is the lack of paperwork. All applications are done entirely online, with no faxing or stacks of forms.
One potential downside to this is the lack of a “paper trail” to review later. You need to manage your own paper trail. Take screen shots of every important form and put them in a folder. If you feel more comfortable with hard copies, just print the documents as you go for safekeeping.
It’s better to have them and not need them, then to need them and not have them.
NSL Your Home for Online Loans
For great customer service and reliable security, National Small Loan is the best bet for short term online loans.