Payday lenders are a great way to get quick and easy loans. The company will check your details and sanction your loan in about ten minutes to an hour. Most online payday loan lenders pride themselves on their speed and approval process but along with authentic companies fraud companies are abundant as well. Scammers will take your details apply to reliable payday companies and then take a loan with your details; leaving you to pay off the loan. To prevent this you have to be careful while selecting a lender. We’ve created a short guide that should prove helpful when you go online to select a payday lender.
Check licenses — Most payday agencies are licensed to work in the US. As a result they will display their license number on the front page. If you are based in another country we recommend you verify the license on the website by checking with the licensing authority. Most payday agencies will also display their interest rate on the landing page and you can verify these details by checking on the information page.
Broker or lender — Payday lending sites usually primary websites which verify your details approve your loans and then sanction the loan by depositing the cash in your account. However there are broker sites as well which look just like payday lending sites. You may fill in the online application form the same way but the company will then forward your details to authentic lending sites. This is not illegal but it ultimately sticks you with a higher interest rate. This is because the broker will take a percentage for sending the payday company business. We recommend you verify the website before filling in the online application form.
Find lenders that are attached to financial institutions — Now payday agencies are usually attached to major financial institutions. We recommend you find such agencies and take a payday loan from such approved companies.
Interest rates and loan amounts — Most lenders will display their loan rates up front on the landing page. Make sure you verify the loan amount the term of the loan and the loan amount that you can get from the lending company. Verifying these details before taking the loan will protect you from problems later on.
The bottom line
Almost 99% of all payday lenders are reliable but the scam artists can dirty the waters considerably. As long as you follow the rules we’ve mentioned you should not have any problems. we also recommend that you stick to the same lending agency for your payday loans as repeat loans can increase your trust rating. Better ratings may also reduce your interest rate and get your higher loan amounts. We also recommend you do not reply to solicitation emails from payday agencies as most companies usually have good business. They do not need to ask you for loans. Generally be very careful while sharing your personal details online with new websites and you should be fine.
Additional info can be found here.