Latest Update: March 10, 2018
How to Choose Safe and Legitimate Loans Online
In spite of what people might say, there are numerous lenders that offer legitimate loans. Below is a list of the most important tips on how to find safe loan companies online.
Even though you might have little time to find a legitimate loan, keep in mind that competition is fierce. This a good thing because you can definitely find something and a bad thing because you will probably need some time to find a safe company.
Do your research in detail in order to find the best lender for your specific situation. This is the first and a very important step.
- Check Their BBB Accreditation
BBB (Better Business Bureau) is a nonprofit organization that has information about all lenders. In other words, if you don’t find information about the lender that you thought was your best bet, stay away from them.
On the other hand, if they have a decent reputation, you should consider this option and move on to your next step.
- Check Their Contact Details
Make sure to know all contact details of your prospective lender. This means their email, phone number and physical address. If they readily provide you with all of these, they are a legit loan company.
- Check Fees, Charges and Terms
Prior to signing a contract with a lender, you should be directly informed about all of their terms, charges and fees. In other words, make sure to read the fine print of your contract and know all the conditions of your contract.
Then see whether you can afford to pay back all money. This is the point where you must be honest with yourself. If the amount is too high, you should better walk away and find better terms.
How to Avoid Scam Loan Companies
Now that you know how to find legit loans and safe companies online, you should also learn how to avoid scam loans. There are a lot of scam lenders and we want to help you avoid them.
- Request for Advance Payment
If your potential lender asks you to pay in advance to get a loan, this is a red flag. As desperately as you need that loan, don’t fall for this.
- Consult with Your Lawyer
There are a lot of details hidden in the fine print of loan agreements. Perhaps you are not an expert in law or finance, so you might skip or overlook them.
For this reason, make sure that you take your agreement to your lawyer before signing anything. They will be able to interpret everything to you and make a final verdict on the legitimacy of the loan.
If you are in desperate need of a legitimate loan, you can fall for all kinds of scams and hackers know this. Identity theft victims are on the rise each year, many of them being victims of phishing.
No matter how badly you need the loan, never give your sensitive personal information right away, especially not online. To avoid phishing, you should never give your credit card number, SSN or any other sensitive information to anyone before taking all of the aforementioned steps.
Only when you are 100% sure of the legitimacy of your prospective lender can you discuss providing them with the information they need from you.
- Not Asking for Credit History
Every legitimate loan lender will ask about your credit history. They simply need to know this in order to make an offer to you. Your financial history is very important to lenders and none of them will give you a loan without knowing it.
In case a company doesn’t ask for your credit history, this is a sure sign of a scam. If something like this happens, just cross out this lender and move on to your next option.
- Loan Identity Theft
Be careful about loan identity theft. We wrote a full article guide on that problem. Here is our detailed guide on loan identity theft.
How ElitePersonalFinance Can Help
On our site you can find many other useful articles with tips.
- We try to find the best option for you – the best companies and the details about their offers, such as APR, loan terms, etc.
- We try to help you fix your bad credit score by advising you how to increase your credit score.
- We list tips on how to avoid bad credit loans.
- We give you advice on how to get lower APR.