In general, yes — it’s safe to take out an online loan. Legit lenders are typically equipped with encryption software that keeps your information safe when you apply. They should also have a privacy policy and terms of service that outlines how your information is used — and how you can restrict sharing.
But like anything online, no company can ensure your information stays 100% safe. Confirm your lender has a secure website before following through with the application.
Borrowing a personal loan from an online lender can be fast, but they often come with higher rates. Make sure the benefits outweigh the costs before applying.
Although many lenders frequently advertise online personal loans, there’s a big difference in the price you pay and turnaround when you borrow from a bank, online lender or short-term lender.
While there are no hard-and-fast rules for comparing online lenders, these points can help guide you toward the best option for your financial situation.
Online loans are personal loans — which means you can use them for just about any expense, including:
The cost of your loan depends on three factors:
Use our personal loan calculator to compare costs between online loans.
Follow these steps to find a good deal on an online personal loan:
Some lenders might give you a decision immediately, while others might take one to two business days to get back to you.
A more in-depth look at the personal loan application process
An online loan is often much more convenient than visiting your local bank or credit union. But keep an eye out — some short-term lenders advertise their products as personal loans to trick borrowers into high-cost financing. Learn more about the ins and outs of personal loans and compare other lenders with our guide.
Answers to common questions about online lenders.
Yes. Most legit lenders will check your credit when you submit a full application. However, when you apply for preapproval, most lenders only perform a soft pull on your credit — which won’t affect your score.
It depends. Most lenders don’t accept cosigners, but they do accept coapplicants. Our guide to borrowing with a cosigner can help you navigate your options.
The easiest way is to sign up for autopay — where repayments are automatically withdrawn from your bank account on the due date. Many lenders offer a 0.25% APR discount if you choose this option. You can also make manual repayments from a bank account, and in some cases might even be able to pay by check or debit card.
You can in some cases, though the lowest rates typically go to borrowers with good credit. Borrowers with bad credit may have better luck using a personal loan connection service or borrowing with a coapplicant.
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