For decades, passwords have been the primary means of protecting online accounts. But as hackers get better at cracking them, even strong passwords may not be enough anymore. For important financial accounts, you need a passphrase.
Every Online Loan Comes with an Account You Need to Protect
Borrowing money can be a big decision, but it’s a normal part of running a household. So you should normalize good online security when you do it.
Say you budget carefully each month, only to hit a streak of bad luck that zaps away all your money. Your car blows a tire, pipe bursts, and your pet gets sick.
Eventually, you might run through all your savings putting out these financial fires, so you have to borrow money for the next emergency.
If you apply online and get approved, you’ll get an online account. This is true for online loans even if you have bad credit. Any approved borrower will set up login credentials to review their online loan on demand.
Usually, this requires an email and a password. But this time around, you’ll want to try a passphrase.
What is a Passphrase vs Password?
A passphrase performs the same function as a password when protecting your account. You’ll have to type it in to access your online loan account.
The biggest differences are how it protects your account and what it looks like.
For most people, a password usually contains one word padded with special characters and numbers. Or it could be a random assortment of upper- and lowercase letters, special characters, and numbers.
- The worst example of a password: Password123
- The best example of a password: GnME?-6^zG?U]ryf
A passphrase, on the other hand, can include a full sentence or a string of random words that don’t make sense together. In either case, they should include some special characters and numbers.
- A sentence passphrase: I only dr1nk c0ff3e in the morning!
- A random passphrase: gemstone wr3@th televise1on Adirond@ck
Why Use a Passphrase Instead of a Password?
Switching from a password to a phrase is easy, and it comes with two main benefits.
1. They’re easier to remember
Did you notice the difference between the worst and best examples of the password above? The bad password is easy to remember, while the best option looks like a cat walked on your keyboard.
It can be hard to remember a truly strong password, especially if you rely on computer-generated ones for your online loans.
A passphrase is easier to remember even if it’s random, and it satisfies the complexity requirements of most online direct lenders. That’s because it creates a story that you can visualize and keep in your mind.
2. They’re more secure
While a passphrase may be easier to remember for the average human, it’s a lot harder to guess for hackers.
According to one academic study, it’s because passphrases are longer than passwords. Their research shows length is more effective than adding symbols and characters to complicate a smaller password (like P@ssw0rd123).
Passphrases are also harder to crack because they rely on less likely combinations of words, punctuation, and symbols.
Your online loan account contains confidential personal information that you need to lock up. Make sure you do it with a passphrase. Once you set a strong passphrase for your online loan account, create a new passphrase for all your existing profiles.