When you are borrowing money, you need to sort out the good payday loan lenders from loan sharks. Despite what you might believe, there are still sharks in the loan world and it’s something you absolutely want to avoid. However, borrowers can absolutely become a little unsure in the loan market simply because there are so many apparently “honest” lenders and loan companies out there but it’s important to spot a shark. How can you learn to spot a shark in the lending world?
No Checks of Any Kind
While most payday lenders don’t spend hours on end checking your credit with a fine toothcomb, they do tend to ensure you have the means to repay. In most cases, a UK payday loan lender will ask for some proof or verification that you have income coming into your home. It could be in the form of past payslips from your employer or a bank statement showing your income. However, if you are not asked for any of these things, it might be a shark. Sometimes, you have to be extra careful with lenders and ensure they are legitimate. Not asking for any type of proof over income can be a bit suspect.
Asking for Money Upfront
Loans have fees attached to them but most lenders will not ask for any form of payment upfront. Remember, most borrowers need cash and they don’t really have the ability to pay to get a loan advanced to them. If a lender starts asking for money upfront from the borrower that might be a red flag that something is going on. A shark will usually get their fee and run so you have to be extra careful. Payday loan lenders don’t usually ask for any fees upfront but rather attach to the overall cost of the loan which is paid back over time.
Poor Reputations and Not Licensed or Registered with the Business Bureau
Even in the UK, businesses, (even loan lenders) are required to be registered with the government in one way or another. If the lender you are choosing is not registered as a business with the UK government it might be a sign you’re dealing with a shark. Now, not all unregistered businesses are terrible but it’s something to be very careful of and wary of as well. Also, if their reputations aren’t great, it might be a sign there is something to be wary of. These things are so important to look into when dealing with a UK payday loan lender.
Avoid the Sharks
Loan sharks still exist and the trouble today is that they aren’t lurking around the corners waiting to sell you a bad loan. Some sharks create seemingly good looking and professional websites and just wait to pounce and take your money. Sharks also can run loan companies that hike their interest rates to 2,000 percent in order to keep their borrowers in a very bad loop continuously taking money from them. You have to be very careful when dealing with payday loan lenders and avoid the sharks out there. For more information you can read here https://www.loanpig.co.uk/payday-loans