You can find anything on the Internet nowadays, and that includes personal loans and lines of credit. Clicking open a new tab when you need help in an unexpected emergency is a lot more convenient than heading out to a financial institution. But it isn’t without its downsides. You have to share a lot of personal details about your finances over the Internet before you’re approved.
To make sure you’re sharing your personal information with a reputable financial institution, keep scrolling. You’ll find out why security is important with an online loan, and how to make sure your online loan is safe.
Why is Security Important?
Any time you’re online, security is important. Your personal information acts as the key to your identity, so you should only ever share it with people and companies you trust.
If you make a mistake somewhere along the way, the wrong people can get their hands on your personal information. If it includes things like your contact information, financial account details, or Social Security Number (SSN), they have what it takes to commit fraud and identity theft.
Identity theft happens when a thief creeps pose as you to take out large loans and max outline of credit loans in your name.
While you may dispute these charges, their actions may negatively impact your credit history until you have the fraud removed. That’s why you should always contact a credit reporting agency about suspected fraud right away, and ask them about the next steps to take if there’s an error in an existing personal loan or line of credit.
How to Pick the Right Online Loan
With security a must, finding an online loan that protects your data is paramount. Here are some tips to help you narrow down your options.
Play the Field
Under a time-crunch, you may feel pressured to take the first and fastest option, just so you can tackle your emergency quickly. But this may put your data at risk. It’s worth slowing down and comparing your options, even if it adds on some time to the entire process.
Research financial institutions that offer online loans and lines of credit, making sure to read both positive and negative reviews from a site like TrustPilot.
Understand Predatory Behavior
You can’t trust everything you read on the Internet. But that’s okay — actions speak louder than words. How a financial institution treats prospective borrowers and existing customers says a lot about how they do business.
Be aware that legitimate financial institutions will never email you and demand you share private information in a reply. If you need to address something with your account, they’ll ask you to sign in. And when they do, they won’t use aggressive language to intimidate you into doing something unsafe.
Look for Secure Tech
A financial institution must use the latest encryption technology and security measures that comply with federal law. More still, their privacy or security policy should be easy to find. You should know immediately how they intend to collect, use, and share your information.
Be Security Savvy
Borrowing money online is easy, fast, and convenient, but only if it’s safe. Always confirm your financial institution has your online security in mind.