How to Borrow Money On the Internet Safe and Secure

Learn how to borrow money online while keeping yourself safe and secure. The internet can be a scary place when lenders start asking for you personal information and bank account numbers. There are certain things to look for in an online lender when you are looking for a loan. The main thing is to do your homework and make good decisions. If something sounds too good to be true then it probably is. We discuss what to look for in a lender and also how to improve your chances of getting approved.

How to Choose a Safe and Secure Online Lender

  • Reputable Name - Loaning money online is nothing new and has been around since the internet started. However, it is quickly becoming more mainstream and many peoples first choice for their borrowing needs. When you begin searching the web for lenders look for the names you recognize. Maybe you have seen them on TV or heard about them somewhere else.
  • How Long on the Internet - Many online lenders have been in business over ten years. This is a good sign they are handling their clients and money correctly.
  • Accolades and Accreditations - See which lenders are getting the best reviews, getting awards, and who is operating the most client friendly business.
  • Interest Rates and Fees - Learn who is offering the best interest rates for the type of borrowing you are requesting. The internet is very competitive and quality loan companies need to have interest rates and fees that are in-line with their industry.
  • Address and Phone Number - All lenders should provide and easy to find address and phone number. If there do not then stay away. If they are offering a low interest rate but operate out of Kazakhstan, probably not safe and secure and should not be trusted.
  • State Licensing - Are they licensed to loan money to borrowers in the your state?
  • Read the Fine Print - Take the time to read the loan agreement before committing. This could save you a major headache down the road.

Improve Your Chances to Get Approved for a Loan with These Tips 

The average person under the age of 35 has less than $1,580 in their savings account. Unsurprisingly, that's a big problem.

Having adequate savings enables people to enjoy life via investing in vacations or lifestyle upgrades. It also helps people feel secure when facing emergency expenses from medical bills, car repairs, and other situations.

To bridge the gap between a lack of savings and a lot of need, loans exist that enable consumers to borrow the money they need.

The issue is, if you have bad credit, securing a loan can be difficult.

If you're in need of money now but worry that your credit score will keep you from getting it, Here is a list of tips that improve your chances to get approved.

1. Understand Your Credit Situation

The first thing you'll want to do to increase your chances to get approved for a loan is to get an idea of what you might qualify for.

The best way to do that is to know your credit score.

Getting your credit score pulled is simple in today's digital age. There are no shortage of services out there that will pull your score for free.

Online, use these services to check your credit score. Most can show you where you stand in minutes.

Offline, you can see if your local bank or credit union can help.

Alternatively, the Federal Trade Commission requires that major credit bureaus give you a free copy of your credit report, at your request, on an annual basis. You can learn more about that process here.

Once you have your score, review the chart below to understand where your creditworthiness falls on a scale of Poor to Exceptional:

  • 300-579 - Poor
  • 580-669 - Fair
  • 670-739 - Good
  • 740-799 - Very Good
  • 800-850 - Exceptional

If your score falls in the poor to fair range, you'll want to be careful about which lenders you send in loan applications to (more on that later).

Personal Loans and Payday Loans

Many personal loan lenders do not take your credit score into consideration. So in this instance your credit history will not be considered by the lenders.

Consider Getting a Cosigner

If your credit is too poor to qualify for an unsecured loan in the amount you need, you can always try to engage a cosigner. A cosigner is a friend or family member who signs your loan application and states that they will take over your loan balance if you default on it.

With a cosigner's signature, your lender has an insurance policy against your low credit score and will be more willing to approve your loan.

See If You Qualify for Secured Loans

Unsecured loans are standard loan products where lenders give you money based on the trust they have in you fulfilling your payment obligations. Secured loans ask for you to put up collateral in exchange for your money so lenders don't need to rely on your creditworthiness to approve a loan.

Put simply, if you need a loan but have poor credit, you could promise a lender property you own (the deed to your car, house, stocks, boats, etc.).

If you fail to meet your payment obligations, you lender can recoup their losses by taking possession of that property.

If you meet your payment obligations, your property titles return to you.

Improve Your Credit

Perhaps the best way to improve your chances to get approved for a loan is to improve your credit score. This suggestion isn't particularly helpful to people who need money in a pinch but it is important to note.

A little bit of effort today in improving your money habits could mean changing your loan options in only a few months.

Some ways you can start improving your credit score are:

  • Paying off your existing loans
  • Reducing the balance you have on your credit cards
  • Settling any accounts in collections
  • Keeping your old credit cards open to increase your credit history
  • Set your bills to auto-pay so you don't forget to pay them

The above suggestions only scratch the surface of how you can improve your financial situation and creditworthiness.

Take time to think about which of our suggestions would be easiest for you to do and start making a concerted effort to get them done.

Find The Right Lender

If you need to get approved for a loan today, your best bet is to find the right lender.

There are many lenders out there who specialize in approving loan products for people with poor credit. Some of these lenders will even approve applications without collateral.

Be sure to do your diligence when screening lenders. Many online institutions are of a predatory nature in the way their interest and fee structures work.

For a reputable list of lenders that are likely to help you with your loan needs, feel free to reference our directory of poor credit lenders here!

Wrapping Up Improve Your Chances to Get Approved for a Loan Tips

Getting a loan when you have bad credit can be difficult. Still, it's not impossible and with our get approved for a loan tips above, you'll increase your chances dramatically.

We recommend considering and leveraging as many of our tips above as you can to help you get the money you need today. We also recommend that you make improving your credit a priority in your life so you can start paving your way towards a brighter financial future!

Do you want to increase your finical know how? Are you looking to turn your poor credit situation around?

Whatever your needs are, wants you to be safe and secure while borrowing money online.

Learn more about the financial topics that mean the most to you and browse our approved lenders for your loan needs today!