You can find better personal loan fees by shopping with multiple lenders, and using an online lending network, also known as the loan marketplace, makes the process easier.
With these types of lenders, you can view multiple loan options all online. With a network, you can quickly compare loan options and ensure the best loans to suit your needs.
Online lending network vs direct lender vs peer-to-peer lender
If you use direct lenders, submit a separate application to each lender. For network or peer-to-peer lenders, submit one application that is shared with many potential lenders.
Typically, online lending networks allow you to simultaneously compare prices and terms from multiple partner lenders by submitting a prequalifying application. This allows you to preview potential rates and terms without affecting your credit. After prequalifying, you are consistent with potential lenders who meet your desired loan amount and conditions.
Peer-to-peer lenders work the same way, but your information is shared with multiple private investors on behalf of banks, credit unions and online lenders.
By comparison, direct lenders can only apply for loans with one lender at a time. Some people can prequalify, while others require a formal loan application with hard credit checks that can affect your credit score.
Pros and cons of online lending networks
Before choosing a personal loan via an online lending network, consider the advantages and disadvantages of the process.
advantage
- The ability to compare all your loan options in one place. Unlike traditional loan options with a network, you can compare loan APRs, terms and rates from one perspective.
- An extensive view of available lenders. Many networks have relationships with a wide range of lenders that cater to all credit score levels, loan amounts and loan types.
- There is a low risk of rejection. The network has a solid grasp of your credit, so you won’t waste your loan application that you may not accept.
Disadvantages
- There is no face-to-face support. They do not have the ability to arrange face-to-face customer service. This is particularly noteworthy for those new to the borrowing process.
- Security risk. Most networks have strong security and you can come across loan options that are legal, but may not be reputable. Please enter your personal information only on trustworthy sites.
- Lack of history. Online rental space is relatively new. You need to match lenders you’ve never heard of before and study their reputation further.
How to get a loan through an online lender network
Securing a personal loan using an online lender network is similar to applying for a personal loan. All networks vary slightly, but there is a comprehensive basic process that you can expect when applying for a personal loan through an online lender network.
1. Submit online form and application
The lender’s website requires you to fill out information about yourself, your finances and your loan needs. At this point, you will also need to prepare for a soft credit check as your network will use your credit to match the best loan options you qualify for. Some will inform you that you are using hard credit checks instead, while others will let you know that you can lower your credit score by about 10 points.
2. Check your loan options
After the network has checked your needs and credit score, it matches one or more lenders. Next, you can determine which loan options are best.
Pay close attention to differences in loan offers, including extended interest rates, total borrowing limits, and loan repayment period. These are important factors in loan offers, particularly interest rates, which affect how much the loan will ultimately cost.
Similarly, the loan repayment period affects the amount you pay in total over the life of the loan. Longer repayment periods can reduce monthly installments, but there are also costs of interest during the term of the loan.
3. Choose a loan
After you have decided which lender will best suit your needs, you will likely be sent to your lender’s site where you can take final steps to secure your loan. Some lenders can earn funds in just one business day. After receiving your loan, we recommend signing up for automatic payments. That way you won’t be late.
Who is the online lending network?
Online lending networks are perfect for those interested in handling the entire personal loan process from home and becoming more confident in navigating the website.
With a long list of partners, the lending market is a good option for poor credit. While strong credit borrowers usually have many loan options, those with poor credit can find difficult to search. By applying it first through the network, you can avoid negativity frustration as only lenders are visible to meet your needs.
Conclusion
Online lending networks offer the convenience of viewing multiple loan options at once. This saves time compared to working with lenders or researching multiple lenders.
Before deciding on a loan, carefully review and compare the terms of the loan and pay special attention to factors such as interest rates, loan amounts, and repayment timelines.
