One of the great things about the internet is that there are more companies that offer quick and easy access to loans and cash when you need it. There is a price to pay for that convenience, though.
There are dozens of online loan lenders that you need to avoid. Online scams and fraud continues to increase. In 2018, online fraud cost consumers more than $1.48 billion, a 38% increase from 2017.
It’s easy to fall prey to a scam when you’re in a desperate situation and need cash quickly. You don’t need to be a scam victim. You do need to know how to find online loan lenders that are legitimate.
Read on to find out how to find reputable online lenders.
1. Are the Lenders Registered?
The financial industry is heavily regulated. In Canada and the U.S. lenders need to have a license to operate and lend money.
You’ll want to make sure that the lender you work with has a legitimate license to operate in the state or province you’re in.
2. Look for Transparency in Loan Terms
Online lenders do a great job of not telling you the entire story of your loan. You’re often given a monthly payment, when it’s due, and how many months you need to pay the loan for.
What you’re not often given is the amount of interest you pay and the total amount of interest you’ll pay for the life of the loan.
For example, when you get online loans from Captain Cash, you’ll know what the fees, payments, and interest rates are. They have that listed on the website.
3. Support and Contact Information
Reputable lenders have support and contact information readily available on their site. You want to have much more than just a contact form or an email@example.com email address.
You want to see a physical address (avoid P.O. Boxes) and a phone number. You also want to test those by calling to make sure that someone answers the phone and answers your questions.
4. Read Online Reviews
The ultimate sign of a legitimate lender is that they have a lot of satisfied customers. You want to do your research online and check to see what others are saying about their dealings with the lender.
You’ll also want to do a general news search of potential lenders to make sure they haven’t been in the news for the wrong reasons.
5. You Need to Be Approved for the Loan
There are lenders that will guarantee your loan, no matter what. These are online lenders that you need to run away from as fast as you can.
You want to work with a lender that has criteria to meet to qualify for the loan. They are responsible lenders that want to make sure you have the funds to pay the loan back.
Finding the Best Online Loan Lenders
The best thing about going online is that money is very accessible when you need it the most. The downside is that there are a lot of people that want to take advantage of your situation.
The best online loan lenders will be transparent about their rates, have a license to operate, and have criteria in place to approve your loan.
Be sure to visit this site often.
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