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When securing a personal loan, there are several types of lenders to consider, including banks, credit unions and finance companies. Of these options, it is also wise to consider online lending networks.
These types of lenders enable you to check out a few different loan options at once using a marketplace, all online. By using a network, you can quickly compare loan options and potentially secure the best loan for your needs.
When working with direct lenders you submit separate applications to each loan office, in the case of a network you submit one application to be shared with many lender partners.
How to secure a loan with an online lender network
Using an online lender network to secure a personal loan is somewhat similar to the traditional application process in that you can expect a credit pull and a basic questionnaire. While every network varies slightly, there is an overarching basic process you can expect when applying for a personal loan through an online lender network.
1. Submit an online form and application
After arriving at the network’s site, you will need to fill out some information on yourself, your finances and your need for a loan. At this point, you should also prepare for either a soft or hard credit check, as the network will use your credit to match you with the best loan options that you qualify for.
2. Review loan options
After the network has a grasp on your needs and credit score, it will match you with one or more lenders. You can then determine which loan option is best for you. Pay close attention to available rates, any restrictions on the amount you can borrow and the term.
3. Choose your loan
After determining which lender best fits your needs, you will likely be sent to that lender’s site where you can take the final steps to secure your loan. Depending on the lender, you could get your funds in just one business day. After receiving the loan, it is recommended to sign up for automatic payments so you never fall behind.
Benefits and drawbacks of an online lending network
Before deciding to secure a personal loan through an online lending network consider the advantages and disadvantages of the process.
Who is an online lending network best for?
An online lending network is best for those that are interested in handling the entire personal loan process from the comfort of their home and feel confident in using technology to achieve that. The ease of loan comparison coupled with the back-end work handled by the network ensures you are presented with loans that match your needs.
This also makes using an online lending network an especially good option for those with bad credit. While borrowers with strong credit have a wide range of loan options, those with poor credit must approach the process more tentatively. By applying first through the network you can avoid the frustration of denial as you will only be presented with financial institutions that can cater to your needs.
The bottom line
It is hard to look past the convenience that comes with securing a loan through an online lending network. The process is fairly straightforward and can take much less time than working with a loan officer in person. Before setting out on your personal loan journey take the time to consider this as an option while still staying current on personal loan rates.