4 ways to tell if online lenders are legit
LOS ANGELES, April 04, 2022 (GLOBE NEWSWIRE) — Online loans make it easy for borrowers to get a loan from the comfort of their own home. Many online loan applications are straightforward, and borrowers can often be approved and funded in just one day. But keep in mind that not all online lenders are legit. It is therefore wise to be careful and do your research before going ahead with a lender to avoid scammers and find legitimate online loans. With that in mind, here are four ways to help borrowers determine if online lenders and loans are legitimate.
1. The lender is registered in the State of the borrower
The Federal Trade Commission (FTC) requires all lenders to register in any state in which they do business. Most legitimate lenders have a page on their website listing their records, so borrowers should check the lender’s site. If they can’t find this information, the lender may not be legitimate. Borrowers can also check the National Multi-State Licensing System (NMLS) or contact the appropriate regulatory agency in their state to verify.
2. They have positive reviews on Google
Google reviews can be a great starting point for researching lenders. Borrowers should obtain a loan from a lender with many positive reviews. If a lender has an overwhelming number of 1 star reviews and negative feedback, they may not be legit. That said, they could also be a genuine lender but not worth working with. No reviews at all could also be a bad sign. This could indicate that the lender is a scammer pretending to be a real lender.
3. They have a good rating from the Better Business Bureau
The Better Business Bureau, or BBB, is a nonprofit website dedicated to helping consumers find reputable businesses, such as lenders.
The BBB helps borrowers find legitimate lenders in several ways. It gives businesses an A+ to F rating and allows customers to rate businesses out of 5 stars and leave reviews and complaints. Any lenders with low ratings, low ratings, and lots of bad reviews and complaints are probably worth avoiding.
In addition, the BBB grants accreditation to companies that meet certain standards. Also look for this accreditation when comparing lenders.
4. They don’t require upfront payment
Legitimate lenders may charge borrowers an application fee when applying, but they deduct it from the loan balance. They will never ask borrowers to pay anything before applying. So, if a lender demands payment before a borrower applies for a loan, chances are it is not legitimate.
Avoid scams and get a legit online loan
As more and more people take advantage of online loans, more and more illegitimate lenders are appearing. Fortunately, borrowers can avoid them by doing some research beforehand. They can start by seeing if the lender is licensed in their state, then check Google reviews and the lender’s BBB profile. Finally, borrowers should ensure that the lender does not require any upfront payment before applying. Borrowers who spend more time evaluating lenders will be able to find a legitimate lender who can get them the funds they need.
Advance America is a safe and legitimate lender that offers a variety of online loans, ranging from cash advances and installment loans to title loans and lines of credit. With an A+ Better Business Bureau rating and countless positive reviews on Google and Trustpilot, Advance America prides itself on offering borrowers fast cash loans and excellent customer service.
Notice: The information provided in this article is provided for guidance only. Consult your financial advisor about your financial situation.
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