What You Should Know about Online Lenders

By Paul A. Achoa

Certain modern lenders run all of their operations over the internet to help avoid overhead costs associated with having physical, brick-and-mortar branches. Since they have lower costs and broader reach, they are often able to provide greater access to bad-credit loans compared too traditional banks.

With that being said, interest rates and repayment terms can vary significantly with online lenders. Some will also charge annual percentage rates (APRs) that can reach triple digits on their high-risk, short-term loans. To avoid these exorbitant fees, you should compare offers to find the lowest possible rate you can get.