Payday loan lenders have a more relaxed loan application process than other banks and lenders. This is especially true for payday loan lenders that allow borrowers to apply online. Generally, payday loan lenders will look the other way if you have low income and poor credit history. However, because of their eased eligibility requirements, the interest rates of payday loans run extremely high. If you understand the risks associated with taking out a payday loan and yet still decide to apply, make sure your online payday loan lender displays the following qualities of a legitimate operation.
Easy-to-Find Contact Information
If a lender does not have a physical address or contact information listed on their website, then they are probably not legit. After all, a lender that doesn’t want to be found is likely hiding from something. If you are able to find a contact form, email address, or phone number, reach out to them to see how responsive they are. A legitimate lender will get back to a potential consumer. That’s just good business.
Approval by the Better Business Bureau
A well-respected sign of reassurance to consumers, accreditation by the Better Business Bureau (BBB) is a seal of approval that affirms if a company is trustworthy and deserving of your business.
Transparent Payday Loan Fees
Legitimate payday loan lenders are legally required to list all applicable charges and fees that you will be required to pay over the course of the loan. If the fees are hidden by a lender, then they are not legit.
No Upfront Payday Loan Charges
You should not have to pay anything before you borrow, so beware of any illegitimate lenders that request you to pay money upfront.
Obeys State Payday Loan Regulations
The ability-to-repay ruling requires lenders to weigh an applicant’s income, expenses, and debt in order to reasonably determine whether they have the ability to repay the loan. Legit payday loan lenders also cannot charge you more than the state maximum limits, so be sure to check your state’s lending regulations before borrowing any money.
Do Your Payday Loan Research
An online payday loan lender that offers quick cash with no questions asked is likely too good to be true. Either shop around for a loan that’s right for you or try budgeting for your expense if it can wait. Don’t suffer the long-term financial repercussions of doing business with a questionable payday loan lender with sky-high interest rates and rollover fees.
Legitimate Payday Loan Relief
If you need help rebounding your finances from debt caused by payday loans, consult with the professionals at Progressive Debt Relief. Not only can we help you consolidate your existing debt, but we can supply you with the tools you need to avoid future financial distress and get you on the road to a debt-free life. Contact us to learn more about our services or to schedule a complimentary consultation.
