 TITLE: Can I Trust Online Personal Loan Lenders? CONTENT: The Difference Between Online Lenders and Traditional Lenders\n-------------------------------------------------------------\nOnline lenders are generally financial technology (fintech) companies, many of which launched and grew in the years following the Great Recession. Some online lenders partner with banks to fund the loans, while others use different sources of funding, such as a peer-to-peer model that connects investors and borrowers.\nOnline personal loan lenders tend to distinguish themselves from traditional lenders in several ways:\n*   **They focus on one or two products.** An online lender might only offer one product, such as a personal loan, rather than a full range of banking services. Some have grown, however, and now offer more than one product, such as personal loans and personal lines of credit.\n*   **They automate much of the application review and underwriting process.** The focus on technology, automation and use of alternative data allows online lenders to quickly make a decision when you apply for a loan. While this method of loan approval may make some borrowers nervous, reputable lenders can make this process safe and efficient.\n*   **They work with a wide variety of borrowers.** Banks tend to offer personal loans only to the most creditworthy applications, if at all. Some online lenders also primarily work with those who have excellent credit, but others focus on serving people with poor credit.\nNot to be outdone by online-only lenders, some banks and credit unions have launched their own online platforms or partnered with fintech companies to offer personal loans. These may be similar to the personal loans you can receive from online-only lenders. END