When it comes to short term loans, not all lenders are created equal. Whether they position themselves as payday loan lenders, cash advance lenders, or short term loan lenders, some of these companies are less than upstanding.
Consumers must look out for themselves when considering these loans and find a lender they can trust. This means doing thorough research and gathering as many details as possible in order to make an informed decision.
The Internet holds a wealth of information and should prove useful when researching short term loan lenders. Type in a keyword phrase like “UK short term lender reviews” and the result will be more than a few sites that compare and contrast providers of short term loans.
Finding Reputable Short Term Loan Lenders
Identify the lenders that offer the best loan rates and repayment terms. Even though the loan spans only a short period, it is important not to pay any more interest than is necessary.
Previous customer feedback can also be helpful in deciding between short term loan lenders. Check with friends and family members to see if they have worked with any cash advance lenders or payday loan lenders they would recommend.
Ask what rates they paid, how reliable the company was, and how pleasant customer service representatives were. Read online reviews from previous customers on independent sites. Lenders usually only post positive reviews on their own sites.
If cash is needed in a hurry, look for payday loan lenders that fund loans within 24 hours. This is often done electronically, adding convenience to a financial situation that is most likely stressful for the consumer. Once the bank recognizes the receipt of funds and clears the deposit, the money can be spent.
Just as it is wise to be wary of very high rates, it is important to have a skeptical view of lenders offering extremely low rates. If a single company is able to find such a rate, why are the others not doing so in order to get more business? In many cases, this is a bait and switch situation where the consumer will never actually receive such a low rate.
Put Together A List
After developing a list of the top five short term loan lenders, visit the Web site of each one. The organization should have full details posted on its Web site.
If information seems vague or finding the loan terms proves impossible, cross this lender off the list. There is a reason this information is not readily visible and it is probably not a good one. Better to find out that a company is not reputable at this stage than after providing personal information.
Local Authority Assured Trader Scheme Networks provide consumers with a reliable way to locate trustworthy businesses. Local businesses who join promise to meet national standards and treat customers fairly.
Are They Compliant?
The Office of Fair Trading supplies an OFT Approved code logo to businesses that commit to a code of practice approved by the OFT. When reviewing available lenders for short term loans, check for membership in one of these networks.
Sources report that at least 99 percent of short term loan lenders are legitimate and offer reasonable rates. It is the remaining one percent that can cause many problems for consumers.
By doing thorough research before entering an agreement for a short term loan, a consumer can avoid becoming a victim of an unscrupulous lender.