(Newswire.net — August 27, 2018) — Life is fraught with uncertainties. While one day you might be doing great financially, the next day you might wake up having a financial emergency that will require all of your attention. Unfortunately, only 39% of Americans can afford to offset emergencies worth $1,000, according to a CNBC news article.
The remaining 41% will have to look for other ways to get enough cash to cater for such emergencies. While conventional bank loans can be a lifesaver, their approval typically takes too long which makes payday loans a great option for offsetting unforeseen emergencies. The trick is to choose a lender whose policies resonate with your needs.
Here are four tips for choosing a trustworthy payday loan lender:
Pay Attention to the Lender’s Privacy Policy
While most lenders tend to offer payday loans by paying attention to the consistency of your job and looking into your bank account, there are ways to borrow money without a bank account. Such enticing terms should, however, not lead to you compromising your data security in exchange for the benefits of the loans. Read the privacy policy of the lender to ensure that you will be leaving your information in the right hands.
To evade instances where you have to deal with identity theft among other issues, go a few steps further by assessing their website for security seals from trusted companies. This will give some peace of mind. Additionally, reading online reviews on how the lenders handle their clients can give you some understanding of who you will be working with.
Read the Terms and Conditions Carefully
Never tick the ‘I agree’ box if you are not sure about what you are walking into. Though this is rather cheeky, some lenders will tend to add some hidden costs into their terms and conditions and write them in small letters. Since most customers read these terms passively, they might fail to notice this only for them to be in for a surprise when paying off their loan.
To be on the safe side, scan through the terms and conditions of the loan and ensure that you understand every bit of it, as noted in The Guardian. A trustworthy lender will ensure that all the requirements of the loan are in black and white to offer customers the best services. In case you find any red flags in the terms and conditions, feel free to work with a different lender.
Pay Attention to Their Customer Service Features
The customer service wing of any business has a pivotal role to play when it comes to enhancing communication between the business owners and customers. A legit lender will have customer service features or even a portal on their website dedicated for communication. Make sure that they have a working phone number, a business email or even a live chat feature.
Different communication options will make it easy for you to raise concerns and get your issues sorted. Furthermore, a customer service wing puts an image to the people on the other side of the conversation and makes it easy to determine whether they are trustworthy or not.
Ensure That the Lender Complies With the Law
There are multiple ways to determine whether a lender is legit or not. For instance, all lenders have to offer loans at rates that comply with the local annual percentage rates (APRs). You can search your local APR on payday loans on Google to determine the standard rate. In case a lender offers their loans at or below that rate, then consider working with them. Beware of lenders who might try to entice you into applying for the maximum loan limit. In most cases, such lenders might be banking on your chances of default to reap from the penalties charged.
Conclusion
Although most emergencies will need you to generate funds fast, take some time to dig into the details about the lenders you would love to work with. This will help you avoid any issues when it comes to paying the loan. Strive to find the most reputable lender and always borrow what you can comfortably pay back.