They would simply make it look reputable, talk a good talk, and they’re sure to catch a few wayward borrowers. Avoid such sites at all costs, and make sure your lenders’ site is secure and encrypted. Perhaps as an added technical tip, look for the little lock on the top left corner of your search bar to verify site security.
Furthermore, ensure they’ve established a reputable business and have been doing so for a while. Although there are new lenders who are indeed legitimate, you’ll likely want to go with a lender who has experience and history, especially if you’re trying to secure a payday loan for the first time.
Verify The Financial Details Closely
By now, it’s clear that the first step in the process of obtaining a loan is doing thorough research. You may have done your fair share of searching on Google and even saw interesting ads such as this one: < Once you've narrowed it down to a few candidates, you can already compare the pertinent financial details.
First, cross-check the interest rates between your potential lenders to see which one offers the best. It’s deeper than the big number displayed, though. Make sure it won’t be raised exponentially over time, or that those late fees are not very high. Check for specific rules that state these facts implicitly.
While you’re there, it’s also a good idea to read the terms and conditions each one puts forth. This would be referred to as the ‘fine print’ or jokingly referred to as ‘the long pages of stuff most people probably don’t feel like reading.’ However, in this type of situation, you should do it since it may save you a lot of trouble in the future. Some things to look for in the terms and conditions are the fees, the schedules for amount payments, the loan disbursement method, the length of the loan, specified due dates, and the interest rates.
Examine The Lender’s Expectations
Aside from the pertinent financial details, look for any signs of the lender’s capability of going to extremes to obtain their money back should they encounter cases of non-repayment. Of course, you should intend to fully pay back the loan. However, in case you won’t be able to repay the loan on time, you should know what to expect whenever there would be delays from your end.
Furthermore, read customer reviews and look for indicators that your prospective lender works with reputable collections agencies to handle delinquent accounts. Check if they have taken any measures to ding someone’s credit over a small loan or a late payment. Inspect closely if the reviews are real, though, as some companies might be producing fake ones just to raise their online ratings. You could even try to get in touch with some of the reviewers via email or whatever social media platform they used to sign their review.
Understanding the nature and the process of payday loans come down to one advice: Be careful with payday loans and make them work for you.
There’s a saying amongst day traders that goes: ‘Sometimes you play the stock, and sometimes the stock plays you.’ For payday loans, though, that thought isn’t applicable. You can’t play a payday loan, not when the interest rates are that high anyway.
However, you can make the loan work for you. A payday loan can be a great asset if you’ve fallen on a difficult situation and need some last-minute help. There’s a way to make sure it doesn’t play you, and that’s by being extremely careful and taking care of your side of the transaction. Ultimately, do your due diligence on your lenders. Be prepared to repay it on time, and make good use of the loan on something you really need.