Do you want to apply for a personal loan online?

Five questions – your really need these 5 simple and fast answers when you want to apply for a personal loan online!

We don’t plan to bother you here with the answers all around will give you, to questions you don’t ask, like “are you sure you really need a personal loan?”. With all due respect, we know for sure you already asked yourself all the obvious questions. It is clear you already had all the basics figured out, so you came here, to this actually helpful questions and answers about applying online for a personal loan.

So, you already know you need it, you can afford it, and you just want to make sure you don’t make mistakes in the process, right? We will concentrate on the banking options. So, if you just search for no credit check or instant approval loans, skip this text and go with the link. So let’s take it to the facts: how apply for a personal loan online, where and what to avoid.

How to apply for a personal loans online – Q&A section

How to get a personal loan online from a bank?

Visit the bank website, and check on the front page for the link “apply for a personal loan online”, or any variation of the words “loan” and “online”. If you see such text, it means in there you will find an application form and you will be able to request you personal loan. Be careful though to check properly the Terms and Conditions for such online loan from the bank. You might get into specific restrictions, based on your location, credit score or business relations with that bank. There might be also a case of different interest rates for online personal loans, so read everything before you start to apply.

How risky is to get a personal loan from a private lender?

As a rule, getting a loan from private lenders is riskier than taking it from a bank. The risk is even higher when the private lender is not a lending institution – other than a bank. Maybe you really want to apply for a personal loan online, and your bank doesn’t offer such option. In this case, you might want to reconsider your preference, rather than going to a private lender just because is offering personal loans online.

If I apply for a personal loan do I have to accept it?

Easy to answer question No1: just because is online, it does not means it has no rules. So the answer is simply NO. The process goes like this: you search, you choose, you apply. The bank is reviewing your application, choose to accept it or not. If accepted, they will make you an offer. You have now the option to accept or not that offer. So by simply taking an action to apply for a personal loan online, there are no legal obligations on your part to take the loan.

Does applying for personal loan affect credit score?

Easy to answer question No2: The answer is the same as above: NO. Applying means just applying, not signing a contract. The only thing that can affect your credit score is the way you handle your loans, not your applications. For that matter, you can choose to apply for a personal loan online to 20 banks on the same day. It matters what contracts you are signing – what loans you are taking, that’s all.

Will a personal loan affect my mortgage application?

Now the answer is YES. Any loan you take is affecting your credit score. But the real question here is HOW. How a personal loan will affect my mortgage application. It can be bad, if the personal loan monthly installments are high. It can be good if the monthly costs are small and the loan is only increasing your credit score. So if you get the urge to apply for a personal loan online, be careful not to take it lightly. Think ahead, plan far, and don’t get dizzy by how easy is now to get a loan.

There is another case worth mentioning. There are cases in which some personal loans – meaning payday loans, can affect a mortgage application. Example: GE Money stopped approving mortgage applications to those who have been using a payday loan during 3 months prior to that application (eventhough that loan was paid as contracted).

The actual application process for online loans

apply for a personal loan onlineWe said it already: applying to a loan online is easy. Hard is to get the best offers and to avoid making mistakes in the selection process. We don’t even get to describe the application process, but if you want to get to an example, please visit Finder.com – how to apply for personal loans online. Is easy.

Back to mistakes: avoid “way too good” offers. If the only thing that makes you choosing a private lender is because your bank does not do online loans, better reconsider. If there is a matter of credit score, don’t just go for the money, look also for an option that can help you repair your credit score.

Warnings: beside avoiding way too good offers. Applying and getting online a personal loan is sometimes too easy and too fast. This can make you skip reading carefully all the details and the fine print. Read everything. Ask for the installments sheet, check for all fees and taxes. Compare the monthly payments and the total amount ant loan end. Compare loans with same duration. Don’t compare only the interest rate or the annual interest rate. Don’t check on check-boxes when you don’t know what you are in fact accepting. Ask questions.