Are online loans safe?
Not even that long ago it was near impossible to get a loan anywhere other than a bank or a credit union, now, with the internet, we can get loans anywhere, and much faster. You can get a loan with an online lender, borrow money with cash app, surf the internet to find an ideal lender for you, for any type of loan, from quick cash loans, no-credit-check loans, personal loans, secured or unsecured. In this blog, you will know 5 safety tips on how to apply for a loan online.
It is more than ever important that we ask ourselves if online loans are safe. We need to remember that they offer competitive rates, can be faster to obtain, and may have fewer requirements. It might seem a bit too good to be true, but, it isn’t really, you just need to remember to do checks to make sure they are ideal and responsible- like you would when you buy something online.
Tips to stay safe.
Staying safe when you go to apply for an online loan is not all that different from anything else you do online. Set your passwords carefully, check out the lender like you would check out an online seller, look at reviews, and so on.
Looking for online loans from online lenders is just like anything else we do online. So, if you are security conscious when you are online, you will be fine. Nonetheless, here are some tips for you.
#1. Always choose a reputable lender with encryption.
No matter how good the lender looks, always make sure that they are a reputable online lender, ensuring they have a physical address and contact information listed on their website. Give them a call before you enter your personal data if you are unsure that it is safe.
This also means looking for security. Look for signs that the information entered on a personal loan website is secured and encrypted. When you look at the address in the top of your browser, it should say ‘https://’ instead of ‘http://’ the ‘s’ indicates that the website is secure. Most browsers will also display a closed lock icon, which will show that the connection is secured and encrypted. Encryption is very important when you are dealing with such personal information.
#2. Do not trust apps that ask for an advance and check permissions.
There are loan apps that may ask you to pay some amount to process your loan application, these apps are scams, and should not be trusted, as often this money is then lost very quickly. Loans do not work this way, and you should not have to pay anything until you have received your loan and have settled on the payment plan with your lender. Getting a loan approved does not cost anything, either.
Also, be cautious of allowing permissions to access your data with lender apps. Always check what it is taking. Some permissions like location, camera, and storage are important for function. However, Contacts and SMS, are not necessary or relevant.
#3. Double check charges.
Always double-check the charges, including the interest rate. This is a valid point for any lender online or in person, ask if you want to ensure you are happy with the payment plan to repay your loan.
You should always double-check the charges and all the financial information before you agree to, or sign, anything.
#4. Research the online lender first.
Before you decide on a lender, we suggest choosing a few you like the look of and research them. This does not only make sure that they are safe, secure, with good encryption technology, and are reliable, but it also gives you a chance to look at how other customers have felt about their services, as well as for you to get an idea on how the process will work with them.
You can also get a vague idea on how much the interest for your loan will be. Similarly, you should also check your credit score as well, to ensure there is at least a good chance your chosen lender will give you a loan.
#5. Always check the agreement before you sign it.
Online, we so often just skim through the terms and conditions and click ‘accept’ no matter what. However, any time you are applying for a loan, always double check everything; the loan amount, any fees and charges, the interest rate, the pay period, how much you must repay per month, and so on. Always ensure you are happy with the agreement before you sign it.
