 TITLE: What Is an Online Loan Provider? CONTENT: Benefits of Online Loan Providers\n---------------------------------\nSince online loan providers are more varied in their company structure, strategy and funding sources than traditional lenders, they're able to operate a little differently—and borrowers can reap the rewards.\nSome are tech startups; others are affiliated with public companies or financial institutions. Still others, typically focusing on personal loans, are peer-to-peer (P2P) platforms funded by other consumers, who fund the loans as an investment.\nThe man benefits of online lenders include:\n*   **Convenience**: Even allowing time for researching each lender, you can likely shop around and get prequalified at multiple online lenders in the time it'd take to visit a traditional lending institution.\n*   **Soft inquiry prequalification**: The prequalification process for online loans uses soft inquiries, comparable to those recorded on your credit report when you check your score yourself. Soft inquiries have no effect on your credit score the way hard inquiries do. (If you move ahead following prequalification and submit a formal loan application, you'll likely be subjected to a hard inquiry that can cause a small dip in your credit score.)\n*   **Fast turnaround**: Online lenders may only take a day or two to decide whether to offer you a loan, where a traditional lender could take a week or more to get back to you. Once you accept a loan, funding is fast, too, with the borrowed amount typically deposited in your checking account within the next few business days. You could see a deposit that quickly if you borrow from an institution you already bank with, but otherwise the funds transfer could take several days to fully clear.\n*   **Options if your credit is subpar**: Some online lenders specialize in customers who have less-than-ideal credit, so you may be able to get a loan online if your credit is poor, though you should be prepared to pay a fairly steep interest rate if you qualify. END