With the high increase in the number of payday loan lenders, both online and offline, deciding on the best can be a bit daunting at times. Taking a loan from a payday lender is one of the best and convenient ways that you can help yourself out of an emergency need such as an emergency house repair, medical bill or any other emergency financial need. But did you know that borrowing from a wrong payday lender can even worsen your financial position? Yes. And this is why you should take your time to get more details about the lender before you apply for the loan. Here are the 5 factors to consider before applying for a payday loan online:
Read customer reviews
What previous clients are saying about a particular payday lender can really help you make a more informed decision. It is from the previous customers reviews that you get to know the strongholds as well as the weaknesses of the lender. A company with more positive reviews is more likely to give you the best services.
Payday lenders offer different payment structures to their clients. Enquiring on the payment plan from the lender prior to your loan application can help you avoid any confrontation during the payment stage. It is also prudent to ask the lender if there are any hidden charges. To locate the lender with the best repayment plan, compare various lenders, ask from your friends or seek experts’ advices. But regardless of the payment plan, it is very important to only apply for a loan that is within the limit that you will be able to pay without straining.
Check how the payday lender handles its client’s complaints. A lender that is customer based is easier to deal with and always have the least number of complaints. This is important as it gives you assurance that incase you do not agreement with certain things your will easily get clarification from the lender. Effective customer care is very important and can also be identified easily through the reviews of the previous borrowers.
You can verify the trustworthiness of a payday loan company by reading the terms and conditions. A good lender should first seek to understand whether you will be able to repay the amount of money you are applying for or not. Although the process involved in applying for a payday loan is usually short and easy, you really need to be skeptic when dealing with a company that is requiring for very sketchy and personal details.
A payday lender should also be licensed and accredited by the authority to carry-out the business. License and accreditation by the state increases the trustworthiness of a payday lender.
Loan processing time
How long will it take for the lender the loan? A payday loan is usually meant to help one fund his/her emergency financial need and thus should be processed while the emergency need last. This means if the payday loan lender is likely to take more time, you can as well seek for alternative means. Payday loans are now processing the loans within a very short time period. Therefore you should select one that is more convenient.
Many payday lenders have taken their services online. While this has made the services more convenient and accessible, it has, however, also increased the chances of falling victim to loan fraud. To avoid this, always ensure that you apply for an online loan from a company that is licensed and accredited by the department of loan regulators. Also note that payday loan is not legal in some States. This means that you should background check a payday lender to ensure that you apply from a licensed and accredited lender.