A decade ago, it was almost impossible to get a loan online. People had to visit banks and stand in a long line to fill out a loan application. But, in this digital age, applying for a loan has become much easier. You can apply for an online loan right from the comfort of your home. Consequently, the question arises “Are online loans safe?”. In this age of misleading internet ads, scams, and identity thefts, it is common to have concerns about your personal information being stolen by fraudsters. Many of you might even have a fear of making an online transaction. So, before applying for a loan, you can feel better knowing that the process is safe and secure if you follow a few simple practices.
Basic checklist before applying for a loan
- Lender’s assurance for your financial data:
Keeping your personal and financial data safe and secure from others is extremely important. Choose an online lender who can assure you of the safety of your financial information. Reputable online lenders like Advance Financial leverage bank-level encryption to safeguard your information and provide you with a secure way to get a loan. Moreover, look if the website has an SSL certificate. You can check for the closed lock sign on the URL and confirm it. SSL is a global standard security technology that enables encrypted communication between a web browser and a web server.
- Choose a lender who has a physical address:
Pick a reputable online lender who has mentioned their physical address and contact information clearly on their website. Before entering your personal and financial information on their online loan application form, make sure you call the lender if you are not convinced if it is safe.
- Check “https” in website address:
A simple sign to look for before entering your sensitive information on the lender’s website is checking if the address says http or https. The website address must have “https” at the beginning of their address. Having “s” implies the website is secure. Moreover, most browsers will display a closed lock icon, indicating that the connection is encrypted and secured.
- Be careful while choosing your password:
While setting up your account, always choose a new password that you have not used before for any other websites. Make sure the password is at least 8 characters long and includes lowercase and uppercase letters, a minimum of 2 numbers, and special characters.
- Read reviews:
Dealing with a reputable lender will prevent most of the problems. But you may not always meet their loan eligibility criteria. So, you will have to do your research and find lenders who can offer you a loan. Read both positive and negative reviews. Then inquire about the lender with your friends/colleagues because it is better to borrow money from a lender that you have heard about.
Safety tips while applying for a loan
- Do not rely on the information provided by third-party websites. Always visit the lender’s website to find any loan related information.
- Before submitting your online loan application form, read the terms and conditions carefully.
- If you find anything suspicious during your online loan application process, immediately report it to the lender.
So, online loans are safe to obtain. Just ensure that you follow a few basic practices for your own safety so that your personal and financial information is safe and secure.