Times have changed. Technology has allowed us to do things that we never needed to do before. We no longer have to meet in person to have a meeting and the same goes for personal loans. You used to have to go to your bank during business hours and fill out an application. Now you can apply for an online loan from anywhere at any time. Companies like 60monthloans, Inc. help customers with bad credit get online loans.

In this article I will discuss how to get an online personal loan, what information you will need to know about yourself to apply, the typical process of an online loan, and things to watch out for when dealing with an online loan company.

How to get an online personal loan

• Type in Google or your favorite search engine for online personal loans. If you know that your credit is not great, you might want to try typing in online personal loans for bad credit. This will give you different results and match you with the company most likely able to help you.

• Read through your options. Look for online lending companies who have lots of reviews from actual customers. Trustpilot.com is a great place to look and see if the company is reviewed by customers. Also, Trustpilot doesn’t delete any review, so it is unbiased in its rating.

• Look for other factors that are important to you in the marketing, (no credit check, unsecured/ no collateral needed, quick funding, no hard pull to your credit, loan amount). Be on the lookout for “*” sometimes a company will say “*no credit check” then when you look at the “*” at the bottom of the page it says that to complete an application a hard inquiry will be done to your credit.

• When you feel confident in your decision with the online lending company, go ahead and complete the online application, and wait for the decision to be made

What information is typically required in an online personal loan application

• All your basic information, Full Name, Address, Phone number, Birthdate, and Social Security number

• The amount you are requesting and the reason for the loan

• Most online personal loan companies deposit the funds directly into your bank account, so your bank account information is needed for an application as well. (Also, security checks are done off your banking information)

• Employment information, where you work, how long you have worked there, how much you get paid, and when you get paid. (You may be asked to upload bank statements with direct deposit proof or pay stubs to verify your income)

• Miscellaneous information such as your education level or where you went to school, or investment/savings habits, may be asked on an online application

• If you are looking into a secured personal loan, information about your car or home will also be asked

The typical process of an Online Personal Loan

• Once you have finished the initial application, with your personal information, the application will usually ask for some verification information, such as bank statements or pay stubs that you will need to upload to the application

• At this point, a credit check is done. Very rarely is there no credit check, typically there is either a soft inquiry to your credit or most commonly a hard credit check. (60monthloans, Inc. only does a soft credit check, so it does not negatively affect your credit score)

• Once the credit check is done, there is either a decision made or someone from the company will follow up with you with some additional questions that need to be answered about your application. Typically, when a soft credit check is done, or you have bad credit, there are more questions asked about the application

• Then you are given an offer, either through a screen online with very few options or an underwriter from the company will call you to make you an offer. (60monthloans, Inc. always makes their offers over the phone)

• If you are denied the loan, you will be sent an email or a letter in the mail with an adverse action statement that will let you know the reasons you got denied, or what to do to find out why you got denied the online loan

Things to watch out for with online lending companies

• There is no phone number to talk to a customer service agent. Even though the application is online, there should still be customer service available to help with your difficult questions. There should be a phone number, an email, options to text or live chat

• The company asks for money from you before they will give you the loan. This is disguised as a loan origination fee, asking for $200 from you before they fund the loan. A legit online personal loan company will still take a loan origination fee, but it will come out of the amount they lend you and not ask for anything until your first payment

• Hidden Fees and unclear terms about APR (Annual Percentage Rate). Every Lender needs to have a contract that clearly states how much interest you will be paying, how much the total cost of the loan will be, and how long the loan goes for. (Be careful about interest rates that say monthly or daily interest rates, they may sound low, but if you look at them closely, they are ridiculously high)

• Look out for Pre-payment penalties, meaning if you pay off the loan early you still have to pay the amount of interest for however long the loan was for. In most states this is illegal, and you only have to pay the amount of interest for the time you have the loan for

• They offer you funding with doing no credit check. There must be some type of check for a company to manage their risk, if they do no checks at all, they are probably fraud

• It seems too good to be true. If you have bad credit you can’t expect to get an amazing interest rate. Online personal loans range from 8%-100% APR depending on individual state laws. If you have bad credit, you should expect your offer to be around 36% and above

I hope this helps you understand the online personal loan process much better.

If you are interested in getting an online personal loan and you have bad credit you should check out 60monthloans.com to see if you qualify.