With all the payday loan companies offering online short-term loans, how does a person know which one to apply to? Unless there is a referral from a friend or relative about a good lending experience with a certain company, the websites may all look the same. The problem is that they are not all the same and it takes some legwork by the customer to find a good lender from the pages of search engine results.
What differentiates payday loan companies from each other?
For starters, if you reside in the US, you will want to make sure the company you work with does as well. Here in the states, there are many regulations set up to protect consumers. There are some states which have banned the loans altogether while some others placed caps on interest and loan amounts. If you live in a state which regulates the short-term loan, seeking loans outside the states will only put you in jeopardy if something goes wrong. Your state government will not be there to have your back. Bottom line, borrow according to the regulations set by the state in which you reside.
Is the webpage you are looking at a direct lender? Some websites only offer services to connect you to a lender. The company which accepts your application may not be one you want to do business with. By no means are you obligated to accept a loan just because it is offered. If you do use a company which finds lenders, take the time to research that particular company in order to make sure it is a business you will be comfortable sharing your personal information with. Check their fees, interest rates and read through the terms and services. This is best practice for any borrower looking at any type of money transaction with a third party. Experts suggest the similar advice to someone looking to open a bank account. Find one that fits your personal situation.
Payday loan companies are not all alike.
A lender’s website should be clear and informative. The application should not be difficult to fill out. A responsible lender will want to know your contact information, your work and personal reference contacts. Most importantly, your bank information is a key factor in qualification. A loan processor will review and check this information for accuracy to make sure an applicant truly qualifies for a fast cash short-term loan. Processing a loan without verifying information is a practice of a predatory lender. Keep communication open and ask as many questions as needed, good payday loan companies will provide answers without pushing a person towards a loan.
In this day and age, the payday loan industry has a bad reputation for taking advantage of financially vulnerable applicants. On the website, there should be some financial advice which could benefit a passing visitor, customer or not. This advice could possibly be to help an applicant think about payment options or a blog about how to budget for the short two week loan term. If a lender is truly thinking about the consumer, there may even be information somewhere on other possible financial solutions rather than the payday loan.
