Getting Guaranteed Online Personal Loans Responsibly

Guaranteed online personal loans are short-term loans designed to help customers cover unexpected expenses. Most personal loans are nicknamed "payday loans" because the loan comes due when you receive your next paycheck. Because of their high fees and strict requirements, you should regard guaranteed online personal loans as a last resort option. However, if you truly have no other choice, there are ways to get an online personal loan in a relatively safety manner.

STEP ONE: SELECT YOUR LENDER CAREFULLY

In the past, many brick-and-mortar lenders used to offer online personal loans. However, different states have passed strict laws prohibiting excessively high interest rates. This has driven some unscrupulous lenders to set up shop on the Internet alone, so they can avoid a given state's regulations. If you are applying for a personal loan, be sure to select a legitimate lender with a good business record. Check to see if the lender has a physical location and a phone number with live person to take your call. Lenders who do not have a physical location and who are unwilling to do business offline are probably not conducting their business ethically. You may also wish to contact your Better Business Bureau and research whether they have received any complaints against the company you are investigating.

STEP TWO: BE CERTAIN YOU CAN WORK WITHIN THE LOAN REQUIREMENTS

Read your prospective loan's terms carefully before applying and be absolutely certain you will be able to comply with them. Be especially sure that you understand the exact amount of the fees you will have to pay, and the exact method the lender will use to reclaim their money. You will usually be charged a fee of $20-25 for every $100 you borrow. For your own safety, you should apply for the absolute lowest amount you can -- the smaller your loan, the lower your fee.

Also be sure you understand exactly what the penalties are if you default on your loan. Lenders will usually ask for your bank account information so they can deduct the loan and their fees directly from your bank account when the loan comes due, and will charge a sizeable fee if you do not have enough money in your account on the day the loan becomes due. Be absolutely certain you understand what those fees are. Some lenders do offer you the opportunity to extend your loan terms if you know you will not have the funds ready in time, but often require you to request this extension two days before the loan comes due. Lenders may also charge yet another fee if you request this extension. Check the terms your lender charges for such an extension, and be certain you understand the terms.

STEP THREE: WATCH YOUR MONEY CAREFULLY


If you apply for an online personal loan, you can get your money within one business day in some cases. Be very careful with your money between your pay date and the day that the loan comes due. Be certain that you have enough money in your bank account to cover the cost of the loan and the fees, so you avoid extra charges and can avoid falling deeper into debt.


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