How to apply for personal loans online

July 15, 2014

Every once in a while, we all need a little help when it comes to money. Taking out a small, fast personal loan can help you make ends meet when you need it most, whether it is because your car has unexpectedly broken down, or you have been hit with a few unforeseen medical bills. Luckily, these days it is easy to apply for a loan online, and fast. Here are our tips for preparing, applying and getting approved online for a personal loan.


Know your credit history

Also a key step to managing your finances going forward, knowing your credit history and rating is the best way to determine if you will be approved for a loan. A bad credit rating doesn’t necessarily mean your loan application will be rejected, but it does give you a good idea of what your current position looks like. You can obtain your credit history report from a reputable credit reporting body within ten days of applying for it. If you urgently need it sooner, you may have to pay a fee.


Figure out what you can afford

Take a look at the fees, charges, interest rate and terms and conditions of the loan you are applying for, and make sure they are all acceptable to you and your current financial situation. Be realistic about how much you can afford to borrow, and how long it will take you to pay it back, including how much you will need to repay each month. Taking out a personal loan can be a great way to obtain fast cash, so long as you don’t get yourself into (or further into) debt by doing so.


Have the right information ready

When you apply online for a personal loan, you will need to have certain personal and financial information on hand. This includes the basics, such as your full name, residential address and phone number, as well as more specific information such as your employment status, salary and driver’s license number. You probably know most of this information off by heart, but you may have to do some digging through your old paperwork to find the rest.


Only lodge one application at a time

Needing to get cash fast can be stressful, so it’s understandable that you might be considering all possible resources. However, it is also important to stay level-headed about your situation. Remember that lodging more than one application at a time can have an impact on your credit history, and make some lenders hesitant to work with you. Keep calm, and wait to hear back on your first application before lodging another one.


Make sure you have a secure Internet connection

Online loan applications are extremely convenient, but always remember that you are sending out sensitive personal information. Using a secured wi-fi or 3G/4G network is a must for this kind of transaction. The free wi-fi at your local coffee shop may be convenient, but it really isn’t worth the risk.

Now that you know what to do and what to expect before, during and after applying for a personal loan online, you are ready to take the next steps. Remember to always make your own financial security the priority, and stay on top of any loans you choose to apply for.