These days, personal and payday loans are becoming the answer to many people seeking fast cash because of mounting bills to pay, increasing prices of goods and commodities, unforeseen medical emergencies, or even an unexpected car breakdown.
The Lowdown on Personal Loan Lenders
Many of these personal loans are offered by banks and small, neighborhood financial groups and lenders. However, there are also many that are offering such loans conveniently online. The demand has made the industry a hotbed for scammers. Because of this, it’s more imperative that you check first the credibility and legality of your loan provider. So before signing on the dotted lines, make sure you’ve checked these five things about/with your personal or payday loan lender:
Legitimacy And License
As mentioned, there are groups and individuals who are simply out for your money. Make sure that your lender is the real deal by asking for their provincial or state license, especially when you’re dealing with small, storefront groups. Even online companies offering personal loans should also be authorized and recognized by agencies such as the Community Financial Services Association. Credible and trustworthy lenders also pride on transparency and they keep their rates and fees posted on their site. Most of all, check the physical address of your loan provider to make sure that the business does exists.
Ask for a copy of the loan agreement before agreeing to anything. The agreement that your lender provides should include critical information such as the total amount being borrowed (with interest rates and other fees properly indicated), the loan’s due date, the method of payment, and penalty charges should you fail to pay the loan on time. Make sure also that the loan agreement details the lender’s privacy and confidentiality provisions.
No money deposit
A legitimate payday loan provider will not ask you to make any money deposits as a prerequisite to approval or processing of your loan application. You are only expected to release money or give any form of payment once you’ve received the loan from them. Some scammers may also ask that you pay a small amount in a prepaid card as a form of deposit or service or administrative charge.
Available customer service
Cash loan providers that are real businesses understand the value of taking care of their customers and will make sure to have some form of customer service available to respond to your questions or concerns. Try contacting the office of your loan provider to see if the customer support sounds professional and can provide consistent answers.
Your privacy and the security of your personal information should be a priority of your cash loan provider. One way to ensure that you’re in good hands is to see if their site is secure. Their website should have “https” as part of their URL instead of the more popular “http”. You can also look for the VeriSign seal, another mark of a secure site.
Payday cash loans for people with bad credit can be your quick and easy solutions in these trying times. However, it’s not always a foolproof industry. If you’re considering getting a short-term personal loan, be extra vigilant and make sure that your loan provider is the real deal.