Online loans change the way you borrow money. Instead of going to a bank to ask for funds in person, you do it all over the web.
Like any loan, you’ll have to share confidential financial information before you can be approved for an online loan. But instead of filling out an application by hand in the bank, you’ll be sharing this info over the web. Check out these four tips to make sure you’re sharing financial information safely.
1. Vet Your Lender
Every financial institution will ask to see your personal details to confirm your identity and assess your credit. That’s all normal, and in some cases, easy. If you work with a financial institution like MoneyKey, for example, you can expect a fast and simple application process.
Before you click “send” on any loan application, you’ll want to confirm your online lender takes your digital privacy seriously, including online cash loans from MoneyKey. Take your time researching online direct lenders, making sure to read up on their privacy policies. Comparing your work to online reviews will help you find a legitimate lender who will protect your data.
2. Log onto a Secure Network
The beauty of online loans is that they aren’t tied to a physical location. That means you can apply to get an online loan from anywhere you get Wi-Fi. However, you might think twice before filling out your application just anywhere.
A coffee shop, library, and other public places provide unsecured networks that don’t require a password, and when they do, it’s freely given to customers and patrons. That means anyone with a bit of knowledge can sign in and eavesdrop on your connection.
To make sure no one is spying on your finances, only ever use a secure home network when applying, reviewing, or repaying your loans.
3. Build an Impenetrable Password
Since there’s no in-branch location where you can service your loan, you’ll almost exclusively check up on your account online. A strong password will help protect the banking info, social security number, and other financial details on your account.
To make one, you’ll have to use a mixture of upper- and lowercase letters, numbers, and symbols. For added strength, make sure you don’t reuse it anywhere else, and don’t use familiar names or dates that would be easy to guess.
4. Review Your Statements
While some online direct lenders will let you pay by sending a check in the mail, most will encourage you to set up automatic withdrawals. You’ll be able to set up your online banking so that your lender is an authorized payee allowed to take out your monthly payments.
This is one of the biggest conveniences of borrowing online, as you won’t have to go anywhere to pay on time. You don’t even need to click your mouse.
That said, you’ll want to review your bank statements to ensure your payments are coming out of your account properly. Compare this to your account with your lender. Getting into this habit helps you catch any suspicious activity indicating a fraudster has latched onto your finances.
Be Cautious — Be Safe
Although there are risks involved in borrowing money online, it poses no more danger than e-banking or buying clothes from e-retailers. You’ll be safe from fraudsters when you protect your data.