5 Security Tips When Shopping For Online Loans

by Credit Faire May 22nd, 2017

5 Security Tips When Shopping For Online Loans


When looking for loans online, we are often times more focused on the speed in which we received our much needed funds. Perhaps if we have bad credit, having options is also a priority. However, what unfortunately gets passed over in favor of the above is security. That is the security of your personal information that you enter to apply for such a loan.

In this post we cover a couple items that you should take into account before you apply for your next loan. While not any single item should be a deal breaker for you, this should provide a good overview of things that could potentially raise a red flag. Naturally, we can’t cover all red flags in this article, so always be sure to keep your eyes open!

1. Direct Lender

Using a direct lender limits the amount of institutions that receive your information. While a indirect lender should not immediately be considered unsecure, they do my nature send out your personal information to various other organizations. To avoid having to look into all the possible companies that may receive your information, using a direct lender is the way to go.

2. Site Security

Naturally you should want the website that is accepting your information to have some form of security on their website. The most common form is an SSL certification, which makes your connection with the organization private. You can usually tell if there is SSL security in place by looking at the address bar of your browser. If it shows a “Secure” or “https://” that means you are secure.

3. Social Validation

This one is easier to spoof but still something to look into. Research the website with a quick google search. In addition to any known scams that could appear, you will generally also find their social media pages as search results. Visit their pages and see if people are liking them or have other feedback. Note that someone with 5000 followers over a company with 300 doesn’t necessarily signify more legitimacy.

4. Contact Information Easily Available

A trusted source generally has contact information available so that you can get in touch with someone quickly with any questions or concerns you might have. Whether this is in the form of a phone call, instant messaging system, physical location, or email; an organization should have at least 3/4 available to you, if not all 4 methods of communication.

5. Common Sense

Something we all have, just some more than others. Common sense can often be the best defence when looking for a secure online loan. For instance, if you are giving your personal information through an unsolicited email, perhaps you should take a moment to think about that. Did you recently submit an inquiry in which someone should be contacting you? Also, a lot of fraudsters while on the phone may reference a legitimate website when taking your information. My advice would be to always defer to the online application over the phone option. Most online loans organizations now a days run your information through their own fraud checks in the their system which happens instantly. Many don’t actually take an application over the phone.

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