Is it Safe to Get a Loan Online?

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The internet makes everything easier. You might consider yourself tech-savvy, and comfortable with accomplishing things online – from ordering a pizza to paying your bills. But the stakes are higher when you apply for a loan online: you need to provide sensitive information to somebody you might not know, and you’re probably talking about a relatively large amount of money.

The safest way to borrow online is to make sure you’re dealing with a reputable lender and that you keep an eye out for red flags. There are two major risks when borrowing money online.

Losing money is a real risk: fake lenders can easily set up shop, promise the world, and charge fees for approving your loan. Ultimately, you don’t get what you paid for.

Paying too much: even if you get a loan, you might end up paying a lot (in fees and interest) to a bad lender – spending thousands of dollars more than necessary. Reputable lenders will give you the same loan for less.

Identity theft happens when you give your personal information to identity thieves – or you give it to a website that does not adequately protect your information (even if they don’t collect the information with the intent of stealing your identity).

The internet makes everything easier. You might consider yourself tech-savvy, and comfortable with accomplishing things online – from ordering a pizza to paying your bills. But the stakes are higher when you apply for a loan online: you need to provide sensitive information to somebody you might not know, and you’re probably talking about a relatively large amount of money.

The safest way to borrow online is to make sure you’re dealing with a reputable lender and that you keep an eye out for red flags. There are two major risks when borrowing money online.

Losing money is a real risk: fake lenders can easily set up shop, promise the world, and charge fees for approving your loan. Ultimately, you don’t get what you paid for.

Paying too much: even if you get a loan, you might end up paying a lot (in fees and interest) to a bad lender – spending thousands of dollars more than necessary. Reputable lenders will give you the same loan for less.

Identity theft happens when you give your personal information to identity thieves – or you give it to a website that does not adequately protect your information (even if they don’t collect the information with the intent of stealing your identity).

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