when you decide

to borrow

Technological advances in the 21st century have greatly affected the way we interact with others and conduct business. The internet revolution really started with the start of the new millennium.



Today, with just a few clicks of a button, or taps in case of a touch-sensitive screen, you can order goods online without setting one foot outside the house. The 'e-revolution' as it is called, has made life much easier for most people.

One great use of online technology is that individuals can easily obtain cash advances without having to visits a bank or other lending institutions multiple times to obtain the loan.

1) the website address starts with https instead of http; 2) there is a padlock icon next to the web address (Chrome and Firefox) or at the of the bottom status bar (Internet Explorer) .

In addition, the browser may also display a warning window in case of an unsecure site. Also, websites that uses a secure certification standard such as TRUSTe are considered safe for borrowing money online.

Avoid Peer to Peer Online Lending

Peer-to-peer lending refers to lending processes where an individual agrees to lend money to another at a specified rate that is facilitated by an online lender. The disadvantage of availing a loan through this type of lending is that your private information may be used in an illegal way by the lender. Moreover, these loans do not come under the jurisdiction of federal and state lending laws, so you must avoid borrowing money from these sites.

Online loan applications allow you to obtain much needed cash quickly and without much of a hassle. However, there are certain precautions you should take when borrowing money online.

Below are some tips that will help you ensure that you are safe when applying for a loan online.

Safe and Secure Online Lender

When borrowing money online, you must ensure that the website is safe and secure. You can check the safety of the site in two ways:

Conformity to Legal Regulations

The online lender must conform to Reg Z and Truth in Lending Act in the US. The legal obligation makes it mandatory for online lenders to divulge information about Annual Percentage Rate (APR) and interest rates when finalizing the loan agreement. You must avoid borrowing money from lenders that do not reveal rates or other important terms relating to the loans.

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Online Lender Location

Make sure that the online lender is incorporated in your country of residence. This is because any local federal or state laws pertaining to online lending is applicable for lenders that are registered in the country. The laws do not apply to international lenders. Taking loans from online lenders that are incorporated in the country of residence allows you to take advantage of the legal protection against predatory or unfair lending practices.

At the end of the day, you must know that without proper knowledge and precautions you can easily fall prey to shady and fraudulent lenders. When it comes to borrowing money online, remaining vigilant is important if you want to avoid falling into any debt trap laid out by deceptive lenders.