Are Online Loans Safe?

Online loans can provide you with the money you need to cover expenses quickly and conveniently. Before you move forward with an online loan, however, make sure that the loan is safe and the lender is legitimate. Here are some of the pros and cons of online loans.


Pros of Online Loans

Safe online loans offer a variety of advantages including:

Convenient Online Application Process

You can apply for an online loan at any time from the comfort of your own home. Applications for online loans are typically quick and easy, and only require a few important pieces of information such as your contact information, Social Security Number, and income and banking information.

Easy to Compare Loan Offers

When you are researching multiple online loans, you’ll find it easy to compare the offers you receive. You’ll be able to determine which loan is the best choice for your individual budget, needs, and preferences.

Quick Loan Access

Upon approval, most lenders who offer safe quick loans online will distribute the money to your bank account within 24 hours. You may even be able to collect the funds the same day you apply, depending on when you fill out the form and which lender you choose.

Pre-Approvals with Soft Credit Inquiries

Online loan lenders often offer pre-approvals. This means you can find out whether you’re eligible for a loan with a soft credit inquiry. Unlike a hard credit inquiry, a soft credit inquiry will have no effect on your credit.

Good Credit Isn’t Always Necessary

All credit levels are eligible to apply. Even if you have bad or fair credit, you could still get approved for quick safe loans online. Many lenders accept borrowers without good credit histories, and may look at other factors, like your income and employment status, to determine whether to accept you.

Cons of Online Loans

As with most credit products, there are a few drawbacks with online loans such as:

Trust Issues

Not all online loan lenders are trustworthy. In fact, there are many scammers out there that pose as reputable lenders in an attempt to deceive borrowers.

Data Sharing

When you apply for an online loan, you’ll have to reveal personal data such as your name, address, and Social Security number. A loan broker may share your information with other companies.

Ongoing Lender Contact

Once you apply for an online loan, you might continue to receive emails or phone calls from the lender.

How to Get a Safe Online Loan

While online loans do come with some risks, there are a few ways to reduce them and avoid scams. Here are some steps you can take to protect your confidential information.

Research Lenders

Don’t settle for the first online loan you find. Take the time to research different lenders. Read reviews on quality review websites like TrustPilot, Google or Yelp.

Look Out for Scam Websites

Once you visit a potential lender’s website, look for signs that may indicate they’re a scammer, including:

  • Spelling and grammar errors
  • No address or a P.O. box instead of a physical address
  • Lack of an “s” after “http” in their site address
  • Missing “lock” in the address bar

These should all be considered red flags.

Use Encryption Software

Encryption software can encrypt data to keep sensitive information secure. You may want to download it to prevent scammers and unauthorized users from getting a hold of your personal details.

Advance America Offers Legitimate and Safe Online Loans

Advance America has a reputation for safe online loans that will keep your information secure. You can trust us for payday loans, installment loans, and more. We encourage you to check out our A+ Better Business Bureau rating and 5-star TrustPilot rating to gain the peace of mind you deserve.

The Advance America advantage

Since 1997, Advance America has helped millions of hardworking people with a variety of financial solutions including Payday Loans, Online Loans, Installment Loans, Title Loans and Personal Lines of Credit.
148+ million
loans issued
900+ stores
and online loans
25+ years
providing loans