It’s great to have money until you don’t. Everyone has times when they need a little extra money, like when they need to fix their car or pay a medical bill out of the blue. But what do you do when you don’t have enough cash? Online lenders are very helpful, but there are so many to choose from that it can be hard to know which one to trust.
Let’s make things less stressful. Here’s how to tell the difference between online lenders you can trust and those who might try to take advantage of you.
1. Do they have a brick-and-mortar address?
It may seem simple, but this is your first big clue. Online businesses that do bad things want to stay hidden.
It’s a good sign that a lender is legitimate and responsible if they have a physical address that you can find, even if it’s just a small office. In the same way that you leave your parents’ address when you borrow their car: if you damage it, you’ll have to pay for it.
2. Befriend the web
Get into your Sherlock Holmes mode before you click “Apply.” To find reviews, complaints, and scams about a lender, search for their name plus words like those.
Are there a lot of bad reports? Warning sign! You can also check with reputable groups like the Better Business Bureau (BBB) or the consumer affairs office in your area to see if anyone has officially filed a complaint against the lender.
3. Are the fees and rates very clear?
Lenders you can trust, like online money lenders in Singapore, will be honest about everything, including interest rates, fees, and how you’ll pay them back. If it seems like you’ll need a magic ring to figure out how much this loan will cost, don’t take it.
Do you remember those “limited-time offers” that you see on bad TV at night? The ones that talk really quickly about all the hidden costs in the small print? It’s the same for some lenders.
4. It’s important to be safe
Check the address of the site. Does it begin with “https”? Is there a lock icon in the address bar? That “s” stands for safe. It’s less likely that your information will be stolen if you borrow money from a legitimate lender. If there is no lock, there is no loan!
5. If you’re not sure what to do, reach out
A lender you can trust will have real customer service that you can reach. So before you apply, give them a call or email them with a simple question.
Do you get answers quickly? Is the staff really helpful? They shouldn’t make you feel like you’re being pushed to apply right away if you think you’re being snubbed. Just think about how you’d like a store to treat you if you had a question about a product. It’s the same here!
6. Watch out for deals that seem too good to be true
We all like a good deal, but be careful if a lender offers ridiculously low interest rates or says they will “guarantee approval.” That person could be a dishonest lender trying to get people to borrow money by making false promises.
Do you remember the saying “If it sounds too good to be true, it probably is”? This is twice as true for loans you get online.
7. Ask the government for help
Don’t worry if you feel too busy. There are often great tools available from the government to help you find a trustworthy lender.
Check out the website of your state’s consumer protection agency. It’s likely that they have guides on how to spot red flags and what to look for in a real loan offer.
Let’s say you need money to fix a big leak in your basement. Two online lenders are found by you: Lender A has a website with lots of typos, fees that are hard to find, and only a PO Box as an address. They offer really low interest rates. Lender B’s website is nice and clean, and their interest rates are clear, even if they are higher. They also have a real office address. The customer service team is nice and willing to help you.
Who sounds like a better bet? Yes, most likely Lender B, even if those interest rates are a little high!
Bottom Line
It shouldn’t be like roulette to get a loan online. When you want to stay safe from scammers, a little research really helps. There are lenders you can trust; you just need to know how to find them. We hope this helps!