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Ways To Check If Loan Lender Is Legitimate 

Millennial Magazine - loan lender

Inflation is a serious issue around the world today. People today are opting for luxurious lifestyles, while the employment market remains skim. No new jobs are being introduced, already existing jobs have a low pay scale as compared to the unavoidable expenses we have, including house rent, groceries, medical bills, utility bills, and more. Resultantly, people are forced to ask for loans to make their ends meet.

With scammers becoming popular as the Internet advances, a loan lender will wait for an innocent to pick their bait. Among many options available, credit building loans are considered more useful for a common man than any other. However, choosing a legitimate loan lender today is a tough job. 

This article focuses on ways you can assure that the lender you are interacting with is legitimate. 

1. Do Extensive Research

Before signing a deal with a loan lender,  you should do extensive research about the individual or the company you are working with. You can check various online forums such as Google, Facebook, and Yelp to see the presence of the company over the internet. You can go through their website, check reviews and comments from their customers, and read their policies. 

Another way of checking the legitimacy of a lender is to see if he is entitled to the Better Business Bureau (BBB). The loan lenders accredited by BBB are considered legitimate.  The website also rates different loan lenders, so you can check the one that meets your needs.

2. Match Their Physical Address With The One Provided

When you are going through the website of the loan lender you are interested in, make sure they have mentioned their office location. If the company is operating in a foreign land, where you can not visit personally, avoid doing business with them. However, if there is a local address where you can afford to visit, make sure you check the place out yourself. 

The physical address of a company should match the address provided on its website. If there is any issue, make sure to investigate further. 

3. Check Out Their Registration 

All businesses are required to be registered with the state and local authorities. Similarly, loan lenders are obliged to get themselves registered with the State Bank. You can check out the official website of State Bank and look at the list of registered loan lenders. 

A registered business is almost always legitimate. If the loan lenders do not come through, later on, you have an authoritative body to contact with. An unregistered company may scam you and you will not be able to find them or sue them later on. 

4. Read Customer Reviews

Customer reviews are the most important when it comes to dealing with a business online. Look at the customer reviews provided on the company’s website, social media accounts, and on Google as well. Do not just read the top reviews. Make sure you spend time reading customers’ comments. 

Customer reviews are particularly important as they may give a fair idea about a business’s services and product quality. You may contact a few customers to get a fair idea. 

5. Check Their Transparency 

A loan lender should be transparent with his terms and conditions. They should not be trying to conceal something. For instance, scammers are not interested in your bad or low credit score or making a credit report. They just want your money. Therefore, you should avoid such loan lenders that are not upfront with their terms, policies, and conditions. 

If a loan lender is insisting on upfront payment before they start paying your loan, then you should beware. Such loan lenders may fail to come through later on. Also, make sure that their payment methods are secure and transparent. If a company is asking you to pay through a method that can not be traced back, know that you are being scammed. 

6. Check Security Of Their Website

A legitimate loan lender will have a secure website. They are a legitimate business that needs to maintain market value and customer base. Therefore, they will not ask for personal information that may not be required in loan lending. They will not use your personal information for their business gain. 

If a website is insecure, and you can feel a hint that your information might not be safe, avoid doing business with such loan lenders. 

Conclusion 

Asking for a loan is becoming a need of almost every individual who is struggling to make ends meet. You can now get loans by building your credit with a loan lending company. However, online dealings can be risky because of scammers waiting for an innocent to fall prey. Make sure you are doing extensive research by reading reviews and visiting the lenders physically to ensure that the company is legitimate and that your money is safe. 

What do you think?

Written by JR Dominguez

JR Dominguez is the technology, finance and music editor for MiLLENNiAL. When he's not writing, you can find him day-trading stocks, playing video games, or composing commercial scores.

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