 TITLE: How Do Online Loans Work? CONTENT: How Safe Are Online Loans?\n--------------------------\nThere are many reputable and trustworthy online-only lenders and traditional lenders that offer online loans. However, you also want to be cautious of scammers. Some signs of a scam include someone reaching out to you to offer you money and guaranteeing you'll be approved regardless of your credit or income.\nYou can look up companies by searching for third-party reviews and seeing if the business has a Better Business Bureau rating. The reviews and complaints can also give you insight into what it might be like to work with the lender. Even if a company is \"safe\" in the sense that you'll receive a loan, you don't want to be stuck paying back a loan to a company that has poor customer service.\nAdditionally, be cautious about taking out a loan that has an especially high interest rate, such as 60% to 200% APR. Although online lenders are allowed to offer term loans with these high rates in many states, and they (accurately) advertise they're cheaper than payday loans, these high-rate installment loans can still be costly and difficult to repay. END