When you are in desperate need of urgent money, payday loans might come in extremely handy. Especially if you have a bad credit score and obtaining a traditional loan from a bank may prove to be difficult. Being a short-term loan, payday loans are easy to apply online and get approved for, but with so many lenders, it is crucial to differentiate reputed lenders from the scammers whose ultimate goal is to lure you into a trap. So here is a detailed guideline that will assist you in quickly identifying genuine payday loan lenders.
Avoid lenders who ask for money
This has to be the highest red flag, and still, many customers fall into the trap. Payday loans are intended to help you financially, so any lender who seeks advance payment is probably a scammer. Avoid them at any cost, no matter how small the payment may be; you are just wasting your time as no authentic lenders will ask you to pay to avail of their loan service. In fact, it is illegal to ask for payment before the loan is approved, so watch out.
Hidden fees associated with fine prints
Although you are expected to read every small detail of your fine print, you should not need to read every clause to find the interest rates for your loan. We at AdvanceNearme offer a transparent fee structure in which anyone can quickly get an idea of the amount of money they need to pay as fees. However, some lenders hide this figure and overpromise on interest rates only to add a bunch of additional fees once the loan is approved. Please make sure you explicitly get a complete breakdown of your outstanding due before signing in contact with the lender.
Note that it is normal for some lenders to have an application fee ( $10 – $100) depending on your loan amount and lender, but you should not learn about the fees after reading the contact details and fine prints. Lenders who hide valuable information like this one are generally looking to overcharge you. Their real intention is not to help you during a financial crisis, so take it into consideration.
Go with a payday matching service.
As payday loans are gaining popularity, scammers and some lenders are finding new ways to exploit the customers. So we recommend you to choose a reputed payday loan matching service that will connect you with multiple lenders and help you find the best deals. Loan matching service eliminated chances of a scam, and you can compare prices between different lenders. But one important thing to remember is that loan matching services are not the actual lenders. You should still be responsible and real every detail of the contract to make sure you understand every clause and comply with them before signing the deal. Loan matching services will not be responsible for your financial decisions, and it is your call to make.
While payday loans are a blessing for people who are in urgent financial need, it is essential to understand that not all lenders are transparent with their business practices. As a customer, you should look out for the red flags discussed in this article. We also recommend you to choose a loan matching service like advancenearme where you can compare deals among lenders to find the one that best suits you.