A significant number of Canadians take out a payday loan every year. While these loans can be a savior in the most stressful moments, they can also trap you in a vicious cycle of debt if you aren’t careful with where you borrow and how you use the borrowed money.
So, the only way to be sure that you are getting a good deal is to borrow money from a reputable lender. Getting your payday loan from an online lender such as Prets Rapides guarantees you peace of mind when you need it most.
This post discusses some of the top qualities of safe online payday loan lenders you need to know.
1. BBB Accreditation
The Better Business Bureau is an organization that plays a critical role in helping consumers to identify legitimate businesses. It operates in the United States, Canada, and Mexico.
They can also help with mediation when there is a disagreement between customers and companies.
Before you complete that online application form, check out the potential lender’s BBB rating. You should also check out how many complainants past customers have filed against the lender and how they handled the issues.
2. No Hidden Fees
Some lenders are cunning and will always want to find a way of gaining maximum profits at your expense. Even though the law requires all payday loan lenders to be transparent about their terms and conditions, some will still find a way to hide information from you.
Therefore, before you submit your loan application request, make sure the contract clearly outlines all forms of fees you need to pay throughout the loan period. If anything isn’t clear, ask for clarification from the lender or move on to the next lender.
Sometimes, hidden fees can accumulate really quickly, making it almost difficult to repay the loan on time.
3. Availability of Contact Information
This is particularly important for online lenders. Don’t just fill that application form blindly and submit it to the lender.
Check out their website to see if you can locate the lender’s contact information. If all you have is a generic contact form, send them a query and see how responsive they are before submitting your loan application.
Keep in mind that legitimate payday loan lenders don’t have an issue with sharing their physical address, phone number, or email address. Be sure to establish where the company is based or if they mainly operate online.
4. No Money Upfront
No legitimate and reputable payday loan lender will request money upfront. Genuine lenders know that you are already in a fix, and you need money to address the emergency. Therefore, they will not ask for any money from you upfront.
If a potential payday loan lender asks you to pay them a processing fee upfront, let it serve as a red flag. If anything doesn’t make sense, don’t think twice; move to the next lender.
In most cases, reputable payday loan lenders will process your loan and charge the origination/processing fee out of the loan proceeds. If you come across a lender who is unwilling to do so, they are probably scammers.