Due Diligence: How to Evaluate Lenders for Fast Personal Loans Online

As of the third quarter of 2022, 22 million Americans had unsecured personal loans, which made it a record high. And this is excluding secured personal loans too.

It’s becoming more acceptable to take out loans for a boost in life, especially if your goals would otherwise be unattainable. But with so many lenders out there, it can be difficult to differentiate between the bad and the good.

To increase your chances of getting a good loan company, you need to do your due diligence. Keep reading to see how you can evaluate lenders for fast personal loans online, so you get the best experience possible.

See What Types of Loans They Have

As we’ve mentioned above, there are two types you can choose from: secured and unsecured personal loans. Secured loans require you to put down collateral, so if you’re not comfortable with that, then you’ll want to stick with lenders that have unsecured loans. However, secured loans have lower APRs since the lender takes on a lower risk, so if that’s important to you, then that might be the better option.

In addition to the two main types of personal loans, there are many others that are for specialized needs. For example, you’ll find ones for bad credit, debt consolidation, emergencies, and home renovations. The lender will understand the urgency, the amount (large or small), and how you’ll want to use the money, so the terms will cater more to your situation.

Find Out the APR

The APR (annual percentage rate) is everything you’ll pay to the lender on top of the amount you’ve borrowed. Typically, this is an interest rate and the fees.

The APR you get will depend on not only the lender itself, but also your credit score and loan term. You’ll get a better APR if you have a good credit score and a shorter loan term. Lenders take on lower risk with both factors, so they’ll give you a lower APR in return.

However, every lender will have their own criteria for APRs, so if you don’t have a fantastic credit score, don’t fret. Some may base their APRs on things like your educational background or job history. If you shop around, you’ll be able to find a lender that has a suitable APR.

Weigh up the Fees

The loan APR will include the fees, but as an overall rate. So you need to look past the percentage and find out exactly what the lender charges.

Typically, lenders won’t charge you to apply for a loan, nor will they hit you with fees if you pay your debt off earlier than scheduled. But you’d be surprised; some will have application and prepayment fees.

There’s something called a loan origination fee too. You’ll be charged for not only the application processing, but also the underwriting and verification.

So as you can see, it’s vital that you read the fine print and understand exactly what you’ll be paying for if you choose a particular lender. Otherwise, you’ll have some unpleasant surprises.

Check Out the Loan Terms

The loan terms are either short-term or long-term. Short-term loans usually span only a year or so, while long-term ones last for years.

If you want to save money, it’s best if you opt for short-term loans. You’ll make repayments quicker, which means you’ll pay less interest.

However, it’s completely up to you what loan term type you want, and the lender you pick should offer you flexibility. It should be within your control as to how long the loan duration is, what amount you borrow, and how you repay them.

Consider Their Customer Service

If everything goes well, then you hopefully won’t have to contact customer service at all. But what if you need to? Then you’ll want reliable service.

Take a look at what the hours of operation are and if there are “emergency” hours. Also, in what ways can you reach customer service? If they have multiple methods, such as phone, live chat, and email, then that’s a good sign.

If a physical location to visit is important to you, then search for that too. Otherwise, the lender should go through the effort to serve their customers efficiently online.

Check if They Have a Good Reputation

A lender may seem fantastic on paper, but in reality, they may be a poor provider.

Fortunately, it’s easy to find out whether they can put their money where their mouth is. Put the company name into Google, and you’ll instantly find customer reviews.

Take time to read through both the good and the bad. It’s likely that the bad points aren’t dealbreakers for you.

Needless to say, if there are no reviews for the loan lender, then it’s best to avoid using them.

Find Out What the Application Process Is Like

If you need money fast, then the application process should be fast too. After all, picking a stellar lender won’t matter much if they take forever to approve your loan.

In addition to speed, you should also consider the ease of use and amount of documentation required. Aim for a simple process where you won’t need to gather endless documents.

Get the Best Fast Personal Loans Online

For the best fast personal loans online, you need to do your research and carefully vet the lenders.

However, you can eliminate that hard work by using a site like ours. We at FastLoanDirect have built a trustworthy network so you can put in your parameters and find options that suit your needs.

Start your search for the best loan provider by using our search tool. We’ll connect you with one of the companies in our network, and you can get loans ranging from $100 to $35,000.