Honest Loans is a “lender connection service,” i.e. a matchmaking service that puts prospective borrowers in contact with lenders that may be willing to lend them money.
What Is HonestLoans?
The HonestLoans website was registered in 2016 through a private domain name registration service, preventing us from discovering who runs the company or where it's located.
Likewise there's no information regarding the physical location of the company, its ownership, or its management available on the HonestLoans website itself.
One clue is a telephone number, which when researched is shared by another loan matchmaking service known as Online Loan Network. This site was likewise registered anonymously and has no information as to where it's physically located.
It's unclear how interrelated HonestLoans and Online Loan Network are, but sharing the same phone number makes us feel that it's two arms of the same core company.
HonestLoans provides lender matchmaking services. Users input their personal information – name, date of birth, address, Social Security number, telephone number, and email address – and the service then finds financial service providers willing to extend loans to these users.
The service works with several different lenders, including those who provide personal loans, installment loans, emergency loans, and cash advances (also called payday loans).
The service itself is free; if you do agree to a loan from one of HonestLoans' lender partners, you will be subject to the terms and conditions of that specific lender. These will differ from one lender to another, and will also fluctuate depending on how much you borrow and at what interest rate.
HonestLoans presents opportunities to individuals who don't have the time or ability to seek a traditional loan from their bank. Loan applications are submitted electronically, and funds are usually sent out in the same manner by the next business day.
Online lending is quick and fast, which can be a lifesaver if you have an emergency situation that requires more cash than you have on hand.
However, short-term loans like cash advances or emergency loans are notoriously expensive when it comes to repayment, relying on incredibly high interest rates to offset risk.
Because of the high interest rates on these types of loans, fast access to cash can be problematic for those who don't have the wherewithal to repay these loans on time and in full.
Late fees and accrued interest can cause a relatively small loan to balloon immensely, making these types of loans much more expensive than they look to be. This is an important thing to keep in mind if you plan on taking out one of these types of loans.
Additionally, keep in mind that using a loan matchmaking service like HonestLoans means you're sharing your personal details with the company.
These companies then use this information to market all sorts of products directly to you – and they also share your details with affiliated marketing companies so that they can ply you with advertisements about their own products and services as well.
Finally, it took forever to figure out who really owns and operates HonestLoans. This is because its parent company, Advance America Online, is rated at an F from the Better Business Bureau for operating a brokerage firm without the required licensing from the state of Florida.
In other words, it's probably a bad idea to use HonestLoans. If the company can't be bothered to get the proper licensing, it's likely it plays fast and loose with other rules and regulations as well.
When it comes to your financial health, using the services of such a disreputable company is simply a bad idea. There are other ways to get loans if you need one.