Finding a reputable personal loan provider online is rather difficult with all of the so-called “shady lenders” you may be worried about taking advantage of your financial needs. The good news is that personal loan lenders are not usually corrupt or dishonest in anyway – it’s usually the “middlemen” in the financial system that try to leverage borrowers’ need for an expedited loan.

Most borrowers think that only the major banks (or conventional lenders) will approve personal loans without demanding high fees and high interest payments. Most borrowers think that reputable lenders will have a lower APR then non-conventional lenders, and the loan serving fees will be much more reasonable. Some of these assumptions may be true to some degree, but the “ethics line” has blurred over the last decade between what consumers call reputable lenders and unreputable, or shady lenders.

Reputable banks don’t hide balloon payments in their loan agreements and they don’t slide fine print into the personal loan agreement. They generally have EARs (effective annual rates) that are transparent and upfront. The loan officer at a reputable bank will show you the detail of your personal loan terms and they make sure you fully understand the service fees on the loan.

Unfortunately there are many lenders who choose to hide all of the above and convince you to sign a loan agreement that is designed to cost you huge money in service fees and in unfair interest rates. Banks and lenders like these are know as “predatory lenders”.

Who Is a Reputable Lender or Bank

Below is list of the characteristics of a reputable lender or bank that offers personal loans:

• they ask for detailed information regarding your finances
• they carry out credit checks
• they offer a low APR
• they don’t rush you in anyway
• they have a full disclosure policy with their personal loan terms
• they may ask for some kind of down payment on the purchase
• they may ask for a cosigner on the personal loan
• they have been lending and banking for a long time
• their personal loans don’t have balloon payments
• they make you aware of the total cost of the personal loan (the EAR)
• they don’t ask for a fee upfront before they do business with you
• they don’t guarantee a loan
• they don’t promise fast loans
• they don’t offer “no credit check personal loans”
• they don’t claim to provide personal loans the same day you apply even though you have no credit, bad credit, or are in bankruptcy
• they don’t offer instant personal unsecured loan (these don’t really exist without paying ridiculous fees and signing on to a high APR “loan shark style” loan

These are just some of the traits you must watch out for when choosing a reputable bank to give you a personal loan. A reputable bank won’t ask for your bank account numbers or visa numbers unless it is done through a secure method. Security is a factor that you will notice with reputable lenders online.

You should notice the URL (web address) of the lender’s (or bank’s) web site. Notice the all important s in the URL. Example https instead of http. This means that you are using secured web pages on secured web sites. These sites are using 128 bit encryption so that your personal financial information is secure. Be wary of any web pages that ask for personal financial information on unsecured web sites, or unsecured web pages.

Reputable Lenders – Online or Offline?

The reality is that you can find reputable or shady lenders online and offline. Don’t assume that because the lender is an online lender and does not a have a bricks and mortar street address and office that they are not reputable. Just the same – just because a lender has an office in your home town and they have a pretty sign on the front of the building means they’re honest and forthright.

There are some online lenders that are straight-shooting and every bit as trustworthy as a major national bank (in some cases they’re even more forthright).

Recognizing Reputable Lenders Online

There some things you can do tell if an online lender is honest and reputable. You can use their phone number to call them and ask their loan officers or administration staff lots of questions. I mean a whole lot of questions. If they are uncomfortable answering your honest to goodness questions then you should be suspicous.

If the online lender does not allow phone calls into their office (assuming they have one) this may be a cause for concern.

You can use search engines like Google, MSN, and Yahoo to find information on the lender. Try typing the online lender’s name and the word review when you are doing your search. You will very likely find some reviews of the online lender written by other borrowers. You can read blogs (like this one) and forums where consumers have and writers have made comments regarding the lender and their reputation.

Reputation is everything online these days and lenders cannot afford to make a bad name for themselves with even a few online borrowers. News travels fast across cyberspace – especially these days.