When you need a loan to make it through an urgent expense, payday loans often come to mind. Before you make the decision to borrow money, it’s important to find a trustworthy payday loan company. There are ways trustworthy companies operate, and looking for the right signs helps you make a solid decision. Not sure where to start? Here’s what you should know.
How to find a trustworthy payday loan company
No qualifications, all guarantees
When you get a loan offer, there should be red flags if they guarantee 100% approval. The truth is, all situations are different, and not everyone should be approved for a loan if it’s a trustworthy company. A 100% approval is more of a risk on your part than on the lender’s.
If you go through a lender you’ve never heard of, it can cause a lot of trouble. Established payday loan companies like this payday loans company have been around long enough to have a history or reviews, and their names are often familiar. If you can’t find more than a few months of history when you search for the company, they don’t have the foundation you need to rely on their services.
Check for fees
Payday loans shouldn’t require you to give money before you get the funds you request. While there are often origination fees or interest associated with payday loans, those are often added to the total loan repayment. Be especially careful if a lender asks for money orders or wire transfers.
There’s no reason for a reputable lender to ask for a wire transfer. If there are fees, a good company will let you pay with a credit or debit card, or a personal check. Legitimate lenders aren’t at risk of having a bank or credit card company stop payment. Scammers and thieves are, and can be traced by the deposit activity.
Look for hidden terms
One of the best things you can do for yourself when looking into payday loans is reading the small print. Make sure you understand all the terms of service, and repayment. A trustworthy payday loan company should make any fees known upfront. However, fees (outside of interest on the original loan amount), are more relevant to home, business, and auto loans. Most payday loan companies avoid upfront fees. When you see a fee at the beginning, be very clear about the terms so you don’t end up with a surprise fee later on.
Understanding what makes a payday loan company trustworthy is the most important part of getting a payday loan. Nobody likes a bad business deal, and the best way to avoid one is to ensure you’re working with a legitimate, established lender. The terms of the loan should be upfront, and easy to understand. Look for lenders that have a good history, and never send a fee through a wire service.