Questions and Answers:Finding a good loan online is becoming more common. Because the task of searching, comparing and deciding on a loan can seem overwhelming, we at InfoFAQ have found answers to some of the toughest questions about online loans. Below are some important frequently asked questions with answers provided by different online lenders.
Frequently Asked Questions About Loans Online
What are the main advantages to getting a loan online?The advantages of looking for and getting a loan online are primarily the ease with which one can compare rates and offerings, and also the speed with which one can become qualified and approved online compared to getting a loan from your bank.
What should I look out for when looking for a loan online?Some loan companies specialize in the sub-prime and poor credit loan market, which means that they take on higher risk loans, but also that they charge more for them. When dealing with a sub-prime lender, look out for super-high rates, hidden fees, and excessive points. If you have poor credit however, you may not be able to get the best rates on your loan.
Can I get a loan online if I don’t have any collateral?You can still obtain a loan in most cases even if you don’t have any collateral like a house to use to secure the loan. The trade off is that you will pay a higher rate for these types of loans and generally can’t extend the payments out for as many months as you can on a home equity second loan, for example.
What do lenders look at in determining my credit worthiness for an online loan?The main thing that lenders will look at when approving you for a loan is your credit score from credit reporting agencies, and your employment situation. This is why your ‘FICA’ score is so important, and why you should pay your bills on time, since things like late payments will lower your FICA score. You can find out your FICA score by contacting the three big credit-reporting agencies.
What if I get a loan online but then become unemployed, how can I protect myself from loan default?
Many loans will let you purchase supplemental loan protection policies that will protect you from defaulting on your loan if you become unemployed. This will pay your loan payments for you when you have lost your job due to layoff or disability.
Consumer Safety Information
Consumer Loans - www.helpwithmybank.gov
Answers to frequently asked questions about consumer loans, car loans, and other personal loans and lines of credit.
Credit Loans - www.ftc.gov
Provides information on Getting Credit, Advance-Fee Loan Scams, Avoiding Fraud, and Building Credit.
Companies - www.dfi.wa.gov
Information for consumer loan companies from the Washington State Department of Financial Institutions.
Consumer Credit - www.federalreserve.gov
Federal Reserve Statistical Release.
Loan Officers - www.bls.gov
Occupational Outlook Handbook, 2010-2011 Edition.
Home Mortgage - www.yourhome.ca.gov
A Guide to Mortgage Resources in California.
Debt - www.ftc.gov
If you or someone you know is in financial hot water, consider these options: realistic budgeting, credit counseling from a reputable organization, debt consolidation, or bankruptcy.
Mortgage Refinancing - www.federalreserve.gov
A Consumer's Guide to Mortgage Refinancing.
Home Loans - www.federalreserveconsumerhelp.gov
If you have a problem with a bank or other financial institution, contact the Federal Reserve for help.
HUD - www.hud.gov
Financing Manufactured (Mobile) Homes.
Visit our Credit Card Fraud section for useful information.