Section 8 Assist

Tips For Finding A Legitimate Loan Online

You can find a loan online to fix your finances fast. When doing so, though, you’ll need to follow a few rules to stay safe from scams.

The Internet makes it easy to find financing when you need money in an emergency. Unfortunately, this convenience comes with a bit of danger thanks to con artists looking to steal your data or money.

How can you stay safe and still get the loan you need? We’ll discuss that in a bit, but first, let’s look at some risks you face when looking for loans online.

Overpaying for Loans

Getting approved for a loan shouldn’t lead to a sigh of relief until you figure out how much you’re paying for it. Bad lenders can overcharge in terms of fees and interest to the point that such temporary help becomes a long-term headache.

A reputable lender can give you the same loan that a bad lender can at a much lower price. Add in the safety aspect, and you have plenty of reasons to do your research before picking a lender.

Having Your Money Stolen

It doesn’t take much for a fake lender to make a website aimed at preying on potential borrowers. They may guarantee approval and ask for upfront fees to process your application. Once you wire those fees, the lender disappears with your money.

Identity Theft

A loan application is loaded with valuable information for con artists. Once they have your Social Security number, date of birth, and other data, they can steal your identity and create long-lasting damage to your credit by opening bogus accounts in your name.

While some sites are set up solely to steal your information, others may allow it to be taken due to inadequate security. Regardless of how your info is stolen, you want to keep it from happening by dealing with reputable lenders who have proper security measures in place to protect your data.

Online Lenders to Avoid

If a potential lender is linked to any of the following, look elsewhere for your loan:

  • Unsolicited phone calls
  • Unsolicited mail that arrives at your house
  • Spam emails
  • Guaranteed approval
  • Upfront fees
  • Request payment by Western Union or wire
  • Lack of professionalism

If you see any of the following behavior from a lender, they may be running an unlicensed and illegal practice:

  • Charging higher interest rates than your state legally allows
  • Renewing loans with excessively high fees more than your state legally allows, which increases your debt
  • Breaking laws on collecting debt from unpaid or defaulted loans
  • Adding products into your loan that you never agreed to, such as disability or life insurance

How to Find a Reputable Lender Online

Always do your research before submitting any personal data or filling out an application. You can begin this process by checking the U.S. Consumer Financial Protection Bureau (CFPB) database, where you’ll find complaints on financial products.

Online reviews can give you greater insight into a lender’s reputation. Just know that all reviews may not be legitimate, as some may be created for marketing purposes.

To overcome fake reviews and gain peace of mind, ask people you trust if they’ve had a positive experience with a specific lender. Popular financial podcasts may also point you in the right direction.