Applying for an online loan is a fast and easy way to borrow money for personal or business use. They’re convenient if you’re in need of funds and want to complete the application process from the comfort of your computer or mobile device.
Traditional brick-and-mortar banks are slow to process loan applications and tend to have strict qualifications. Not only can it be difficult to get approved through banks and credit unions, but it can also hurt your credit score every time you apply. Most online lenders will run a soft credit check to pre-qualify you for the loan so you can see offers without impacting your credit score.
Do Your Homework
The internet is a powerful resource, so it’s important you utilize it and do your research before accepting a loan offer. As you research lenders and loans, make note of their loan terms, APR, and fees. Here are a few key questions you should ask about every loan:
- What is the loan amount?
- What is the APR?
- How many months do I have to pay back the loan?
- Are there origination fees or service fees?
- Is there a hard credit check?
Answering these questions will help you compare options and choose the best loan for your specific circumstances. For example, if you need $10,000 immediately, you know not to waste your time with a lender that only offers $5,000.
How Do I Apply for a Loan Online?
When applying for a loan, you must make sure the website has a valid SSL certificate to protect your private information. The easiest way to confirm the website is secure is to look for “https” in the website’s address.
Step 1: Fill Out the Information in Our Application
First, you’ll provide only the basic information needed to get pre-qualified. In most applications, you’ll fill out fields asking for your name, address, income, the amount of the loan, the loan purpose, and your social security number. For example, see our online loan application.
Step 2: Receive a Pre-Qualification Decision
Once you submit your application, you will receive a pre-qualification decision within fifteen seconds. If you are pre-qualified, offers will be displayed with the APR, fees, and loan terms.
Step 3: Compare Your Loan Offers and Determine if the Loan is Right for You
Just because you are pre-qualified for a loan, it does not mean the loan is right for you. Be especially cautious of loans above 36% APR. We only recommend online loans with an APR below 36%.
Step 4: Verify Your Identity
After accepting a loan offer, you will have to verify your identity. Identification methods can include uploading photos of your driver’s license, utility bills, and pay stubs. This process should only be done through a secure online system.
At this time the lender may perform a hard credit check. Be aware that a hard credit check can negatively affect your credit score.
Step 5: Connect Your Bank Account and Receive Funds
Finally, you will provide your bank information to receive the funds. Many lenders disburse funds as soon as the next business day.
What Are the Best Online Loans?
As you begin your research, you may be overwhelmed by all the available options. It can be difficult to discern which loans are best for you. To make things easier, here are a few of the best online options for loans:
Best Online Loans for Credit Scores Above 660
SoFi
- Loan amount: $5,000 to $100,000
- APR: 5.99% to 17.67%
- Average term: 24 to 144 months
- SoFi Personal Loans Review
LightStream
- Loan amount: $5,000 to $100,000
- APR: 3.99% to 16.99%
- Average term: 2 to 12 years
- LightStream Personal Loans Review
Marcus by Goldman Sachs
- Loan amount: $3,500 to $40,000
- APR: 5.99% to 28.99%
- Average term: 36 to 60 months
- Marcus Personal Loans Review
Best Online Loans for Debt Consolidation
Payoff
- Loan amount: $5,000 to $35,000
- APR: 5.99% to 29.99%
- Average term: 36 to 60 months
- Payoff Personal Loans Review
Best Egg
- Loan amount: $2,000 to $35,000
- Average rate: 5.99% to 29.99%
- Average term: 3 to 5 years
- Best Egg Personal Loans Review
Prosper
- Loan amount: $2,000 to $40,000
- APR: 6.95% to 35.99%
- Average term: 3 to 5 years
- Prosper Personal Loans Review
Best Online Loans for Bad Credit
NetCredit
- Loan amount: $1,000 – $10,000
- APR: 34% to 155%
- Average term: 6 to 60 months
- NetCredit Online Loans Review
OppLoans
- Loan amount: $500 – $5,000
- APR: 99% to 199%
- Average term: 6 to 36 months
- OppLoans Online Loans Review
Rise Credit
- Loan amount: $500 – $5,000
- APR: 36% – 299%
- Average term: 4 to 26 months
- Rise Credit Online Loans Review
Applying at OnlineLoans.com
Applying for personal a loan can be a challenging process. That’s why Online Loans empowers potential borrowers throughout the loan application process, allowing users to apply to 16 lenders with one simple application.
