Written by Spotloan
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These days, there’s not much we can’t do online. We can shop for groceries, check our bank balances, or self-publish stories. We can check our credit scores, find the answers to nearly all of our questions, and converse with friends around the world.

New studies of thousands of individuals across five countries have revealed that global content consumption is soaring. The average daily time spent consuming content is now six hours and 59 minutes, which includes phone, TV, and other forms of digital media.

With all this time spent online, some are still reluctant to do certain things virtually. One of these things is locking in an online loan. Read on for tips on what to look for in an online lender in terms of privacy and security, and security measures typically used by online lenders.

Are Online Loans Safe?

Borrowing or requesting a loan through an online portal can be quite safe, depending on the company you are borrowing from. Online lenders use many of the same security measures as mobile bank services and credit card companies. Before applying for an online loan, you’ll want to ensure that you’ve chosen a reputable lender.

You can ensure that a lender is reputable by searching for the name of their business and reading through reviews. While you’re reading, look for red flags, like a high instance of negative or dishonest behaviors or a lack of genuine reviews.

Any business is bound to get an unhappy customer from time to time. But an online lender’s reviews shouldn’t be overwhelmingly negative or concerningly few. Confirming that your online lender is both real and reputable can save you a huge hassle down the road.

Getting a loan online then often becomes significantly more convenient than locking in traditional big-bank loans.

The Benefits of Online Loans

Online loans often come with faster approval and disbursement. In many cases, funds may be disbursed during the same day as the loan is approved. And it’s hard to beat the convenience of applying for the funds you need from the comfort of your living room.

Since the entire process is virtual, you won’t have to worry about running to the bank before or after work. You can apply any time you choose. Our easy online application process takes an average of 10 minutes, making it easy to get started during a lunch break or after work.

Are Online Loans Bad for Your Credit Score?

When deciding between an in-person or online loan, many wonder: are online loans bad for your credit score? Online loan pre-qualification won’t hurt your credit score. But it’s important to note that getting a loan of any kind can impact your credit score.

This impact can be good or bad depending on whether or not you make your payments on time, as well as other individual factors.

Security Measures Typically Used by Online Lenders

Now that we’ve discussed ensuring the reputability of an online lender, the benefits of online loans, and how they impact your credit score, let’s talk about security measures. Knowing what to look for in a lender for the sake of personal privacy and security can help ensure a safe online loan process and provide peace of mind.

Determining their reputability is a major first step. Next, you’ll want to ensure that they’ll give you access to their privacy policy. A lender that has nothing to hide will have no problem providing their clients with this information.

A privacy policy outlines several different things, including:

  • What personal information they’ll need
  • Why they need it
  • How they’ll use it

Transparency in terms of policies, rates, and compliance with applicable laws are all important security measures online lenders can take to make this process safer for their clients. At Spotloan, we offer fast online approvals and transparency from start to finish.

Additional Security Measures Online Borrowers Can Take

One thing you can do to further protect your information is to ensure that all communications and applications are handled over a secure network. Use your home’s password-protected wifi rather than an open coffee shop or another public network.

Sensitive information should always be passed along through secure networks. Open networks make it easier for hackers to steal information. Lastly, pay attention to email addresses and signatures when responding to email requests. If you don’t recognize the email or the email seems suspicious, contact your loan company over the phone to determine if they are reputable. If something seems off or feels suspicious, trust your gut instinct.

Ultimately, deciding on what loan to get is a personal decision and is up to you. And, not all online lenders are the same. At Spotloan, our goal is to provide you with the information to help you weigh your options. You should always make decisions that are in your best interests. And before taking out any loans including a Spotloan, we encourage you to consider alternatives such as borrowing money from a family member or friend, using a credit card cash advance, or using a home equity loan or savings.