4 Characteristics of a Reputable Loan company

 

Navigating the financial world can be tricky. When it comes to giving money to your bank or credit union to open up a checking and/or savings account, you’ll see that they are all smiles, and would go to great lengths to make the transaction as simple as pie. When the tables are turned and you need to get a loan from them, this is when it starts to get treacherous.

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You somehow feel you’ve been transformed from a good neighbor and customer into a potential criminal and con artist. They make you jump through hoops and fill out more paperwork that seems necessary. And only after you’ve been put through the ringer will they then start to decide if they will provide you a loan.

But if you watch television and listen to radio, there seem to be a lot of companies out there willing and happy to lend you money, saying that your handshake is the only guarantee they need. While it may sound a little too good to be true, there are indeed some companies out there that make a nice profit by loaning money to people without a lot of hassle.

For one, take cash advance lenders. For a quick cash loan, they simply need to see you have a steady income. It just takes a few signatures to walk out the door with money in your pocket.

Here are four characteristics of a reputable loan company you should look for before you do any business with them.

1) No application fee.
If your goal is to borrow money from a lender, there is never any reason you need to give them money before you have received a loan. An application fee might turn into a review fee or wire advance fee and suddenly you are out hundreds of dollars with no loan. No reputable company will do this. They make their profit on the interest from your loan.

2) They meet with you in person.
If your only contact with a loan representative is by email or a website, be wary. The Internet is a great business tool, but a real lender wants to meet you in person and assure any documents you provide are legitimate. You should expect the same in reverse. If they won’t meet you in person, email them goodbye.

3) Real lenders don’t ask for your credit card number.
A legitimate lender can do a background search on you and see how many credit cards you have. If someone wants you to put in your card number with the expiration date and security code number on the back, they are planning on making a charge to your account. This is a huge red flag.

4) There are no guarantees.
A real lender will try to work with you but can’t always deliver a loan. If a company says they guarantee to approve anyone for a loan, this is just not true.

Take these tips to heart and go look for a loan company and avoid some of the pitfalls.

 

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