Are Online Personal Loans A Good Idea?

If you need additional cash flow to cover a large expense — a visit to the emergency room, car repairs after a hit-and-run or a home improvement project — online personal loans might be able to provide the funds you need.

Understandably, some people might be wary about borrowing money from a provider you only see online. Below are some key benefits and potential drawbacks to consider as you look for a personal loan.

With online providers, you can review the terms of the loan and put in an application easily from wherever you are. Some brick-and-mortar banks require physical signatures to authorize documents, which means you have to organize your work day around a visit to the loan officer.

When you’re in a bind, personal loans can quickly get money into your hands — many even the same day that you apply.

Because you’re not limited to community banks or credit unions in the area, online personal loans give you the flexibility to borrow from a larger number of providers. You can compare offers to find the best rates, instead of settling for the only one available. Additionally, not all major banks extend personal loans to their customers, which could further constrain what’s available to you. When you use Fiona, rather than guessing, you’ll see personal loans that are already a fit for you, since we search many of the top providers, all in one place.

With search and comparison platforms like Fiona, you can narrow your focus to the best offers for your credit history without creating a hard pull, which might lower your credit score. Pre-qualified offers mean your application is likely to be approved and can help filter out any offers that aren’t a good fit for you.

Consumers want to make sure their data is protected from online hackers. If you’re considering borrowing from an online bank, make sure they’re doing as much as possible to keep your information secure. Two-factor identification and SSL encryption can protect your data just as securely as most traditional banks do — especially today, when everyone does business online.

You might not be familiar with all of the online providers who might offer personal loans. Without name-brand recognition, some people might be more wary of sharing their money and personal information with a faceless screen. Look for reviews or accreditation that signal an online provider isn’t trying to take advantage of you. Other providers are online extensions or subsidiary brands owned by more established providers.

As you sort through personal loan offers, Fiona can help you find an online provider you trust. Start exploring your options with our comprehensive search engine for financial services, to get matched with the loan you need.