Just like banks, private lenders have to meet standards and adhere to regulations set out by the government and financial governing bodies. They are all required to operate in a fair and just manner in order to protect the consumer.
It won’t come as any surprise however, when I tell you that not all lenders follow these rules. The internet is littered with stories of how unscrupulous lenders took advantage of unsuspecting, ill-advised borrowers.
It shocks me, but there are still people out there who are unaware of how to go about safely choosing a lender. Opting for the easiest, quickest choice and not taking care to do the research, is frankly, a foolish way to do business. It is not a good way to look after yourself or your finances.
These less than honest lenders are being weeded out! However, they still do manage to ensnare people in financial difficulty.
When you are looking for a any type of credit or financial assistance, first of all, spend time doing your homework.
Make a list of exactly what you are trying to achieve and what you need to find out. Looking for a reputable lender starts with a simple search. But don’t choose the first one you find! Have a look at customers’ reviews. Do some searches to see what else you can find about the lender you are researching.
Look at good three or four lenders – at least. Compare their fees, charges, terms and conditions. All these elements, when compared to others will help you build up a picture of what is standard practise, who is reputable and who is not.
While the need for a short term loan generally occurs as a result of an unforeseen emergency, and while it is understandable that these types of emergencies usually need to be dealt with very quickly, it is very unwise to rush into any type of loan without doing a thorough check on your lender of choice.
Don’t be bullied, cajoled or ‘sold’ a loan by anyone. Stick to your guns, find out the information you need and say ‘NO!’ if you have any doubts about a lender’s authenticity.
Your money, your data, personal information and your financial security are of paramount importance. Treat it as such, and only do business with lenders and financial institutions with a proven track record of doing likewise for their customers.
We would love to stamp out the negative reputation private lenders are being given as a result of a handful of bad apples. We would love to join forces with the reputable lenders to remove these sharks from being able to operate. Unfortunately, that is not something easily done.
We can however, get the message out there to potential borrowers. We are sharing tips and advice on the best way to do your research and choose a lender in the hope those consumers will learn how to spot the bad lenders for the good ones!
The best way to protect yourself and your money is to look for referrals, good reviews and to ask questions!
Do your homework! It will save you money in the long run.
Look at more than one lender. Compare three or four at least.
Check the terms and conditions, fees and look for any hidden charges.
Don’t be pressured by a hard sell, either on or offline!
Don’t agree to anything until you are certain and feel confident you are dealing with a company who can provide you with a financial solution perfect for your needs.
Be responsible for your own borrowing. Can you afford a loan? Can you afford to pay it back?
Work with a responsible lender. Responsible lenders will have formal guidelines and application procedures, make their fees very clear, and will answer all your questions with no hard sell whatsoever.
If you follow these tips, you’ll be able to avoid a tangle with a bad lender. Instead you’ll be able to access emergency funds when you need them, knowing that at the end of the term you’ll be able to repay the loan, with no drama and no problems.