The Internet has made it easier for the average person to apply for a personal loan online. What used to take several hours of your time to research and then fill out the application, is now possible with just the click of your mouse.

Finding a lender

Before you can apply for a personal loan online, you have to find a lender that meets your needs. In order to do that, you want to conduct some research to find out what kind of interest rate you will have to pay, how long it will take to process the loan, and if you are seeking an unsecured loan, you will need to find out the maximum amount of funds that you will be able to finance without collateral. In addition, if you have questionable credit, you may not qualify for an unsecured loan of any amount, so you must be prepared to offer some collateral if you fit into that category.

Find out all the information you need before applying

One thing you do not want to do is apply to a number off different places. Every time you apply for a loan, credit card, or any other type of credit, a record of that inquiry appears on your credit report. When you have too many inquiries on your credit report, it looks as if you are trying to open a great many accounts at the same time, and thus, brings down your credit score. To avoid that, conduct research first, so that you can choose one lender with whom you want to do business. Only after you have failed at all efforts to work with that lender should you consider filling out an application with another lender for a personal loan online.

Applying for the loan

After you choose the lender that you think will best suit your needs, you are ready to apply for a personal loan online. When you do, be certain that the sit where you fill in the information is a secure site as indicated by a lock on the bottom left portion of your browser. If you do not see the lock, do not put any private information into your browser, but contact the lender by email or telephone to inquire about another way to submit your application such as via fax. It may also be indicative that there is a problem with the website since most financial websites are secure sites.

Obtaining the loan proceeds

When you apply for a personal loan online, you will have to arrange for the funds to be distributed. In most cases, this will be done via direct deposit into your bank account; however, you can choose to ask the lender to mail a check. The problem with the latter method is you will wait several days for the check to arrive, deposit it into your account, and then wait a few more days for it to clear your account so that you have access to the money. Unless you do not have a bank account, always choose the direct deposit option if it is an option. The other drawback is if you don’t have a bank account, you’re going to have a difficult time cashing a check, so you may want to take that opportunity to open a checking account, savings account, or both.