 TITLE: What Is an Online Loan Provider? CONTENT: How Do Online Loan Providers Work?\n----------------------------------\nApplying for an online loan often entails two steps. First comes prequalification—a quick screening that will require you to provide a few personal details (name, address and Social Security number) and answer a few quick questions about your borrowing requirements and income. Once that's submitted, a soft inquiry check of your credit score may be performed and your responses reviewed before you're approved to move on to the second step, loan application. You'll be able to submit a formal loan application based on an offer that specifies a range of loan amounts, a range of interest rates that could apply to the loan, and potential fees associated with the loan.\nDepending on the size and the type of loan, you may be asked to submit some documentation along with the loan application, including proof of identity (copies of a photo ID) and employment (recent pay stub), and evidence of income (a recent pay stub or tax return). With large loans or mortgages, you also may need to document your savings, investments, outstanding debts and household expenses. This information is typically submitted electronically to online lenders via PDF or can be scanned using the camera on your smartphone or tablet.\nOnce you submit all required information, the lender typically does a hard inquiry credit check that includes one or more of your credit reports and the credit score or scores based on them. Based on its review of your credit, the lender could decline your application (if it does so based on your credit, it must tell you why), or make you an offer that specifies an exact loan amount and interest rate, with a details on any origination fees, penalties for making late payments or paying off the loan ahead of schedule, and so on.\nBefore you accept any loan terms, it's always a good idea to seek and compare offers from multiple lenders to make sure you're getting the best possible deal. When you accept a loan offer, the amount you borrow could be deposited into your bank account as quickly as the next day. END