If you’re used to borrowing from your bank, then you may be nervous about getting an online loan for the first time.
We wouldn’t blame you: as late as 2010, almost no one got loans through the internet.
However, since then, millions of Americans have transitioned from banks to online lenders. From 2010 to 2014, the online personal loan industry grew by 700%.
Consider this:
In 2017, Americans held more money in online personal loans than the federal government spent on NASA and all other science programs combined.
In this article, you’ll learn 3 important things about taking out a home improvement loan from an online provider. Whether you’re deciding whether to accept an offer or just exploring, this article will help you understand what you’re getting into.
1. Millions of Americans trust online lenders.
You’ve heard (or experienced) horror stories about online scams, but that doesn’t mean there aren’t legitimate online lending companies.
If you’re considering a loan option you found through Hearth, you can confidently say you’d be working with an industry leader. For example:
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Lending Club is a publicly traded company, and has loaned over $31 billion to 1.5 million customers.
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SoFi has given out over $25 billion to almost 500,000 customers.
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Prosper has given over $10 billion in loans.
2. The process is straightforward. Here’s what to expect.
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Create an account and verify your online information: Depending on which lending partner you select, you may see your information when you continue onto their site. You’ll be asked to confirm this information and create an account to save your progress
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Finalize your loan choice: You’ll be able to review all of your loan options and decide which you want.
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Receive a final approval decision: The lending partner will then perform a credit pull to give you a final decision. This will show up on your credit report.
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Provide income verification: The lending partner may then ask for follow-up verification of your income, such as a W-2. This is a normal part of the process.
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Get funding in as soon as 24 hours to start your project: After verifying your income, you’ll get the money in your bank account.
3. Your information is secure.
Online lenders protect your information using similar security standards as your bank. Of course, nothing is 100% secure, but getting a loan online is no riskier than using a bank.
Conclusion
The best financing option for your home improvement project may or may not be from an online provider. But if you’ve found an option online that helps you save money, don’t let the fact that it’s from the internet stop you from getting a great deal.
Questions or concerns about finding a home improvement loan online? Email [email protected].
