Every once in a while, unforeseen cash needs will creep from behind. You might feel financially secured now. But if you have many responsibilities like a mortgage, kid’s tuition fees, and a car, you will never be too sure.
Good thing that there are some options like money lenders. However, it is no secret that many are unsure about borrowing money from them. One of the most common reasons is the loan sharks.
Loan sharks sometimes pretend to legal lenders with flexible payment options. They are waiting for their victims to miss their due dates. That’s when they will charge steep interest rates and late payment fees. Sometimes they use harassment and public humiliation.
Understandably, a lot of people will steer away from online cash lenders. But knowing how to find the right lender like cash mart singapore can help you with your financial emergencies. Add to that, you can even build your credit score.
Here are some tips to know which lenders to trust.
1. Properly Registered and Licensed
The first thing you have to check is the online lender’s registration number. Most legal lenders will have their licensed numbers written on their websites. You are free to check the license number against the registry’s website.
If the registration number is not available on the website, do not hesitate to ask for it before applying for a loan.
Once you verified the registration number, check if they declared the same interest rates and penalty charges as they show in their website, mobile application, or advertisements. Money lending is a financial industry. And the government does not treat it lightly.
Naturally, there will be strict regulations to adhere to when running a lending business. Registered lenders are mandated to report a borrower’s loan and payment history to the credit bureau. If you want to build a positing credit score, a legal lender can help you.
Though you only have a small loan amount if you pay on time, this will be recorded as a positive payment behavior that other lenders and banks can see. On the other hand, if you get a loan from an unregistered lender, your good payment history will not be reported even if you pay on time.
2. Website Found in Google’s 1st Page
An online lender will naturally have a website. But not all websites land on Google’s first page. Google has an algorithm that will give you the most helpful websites on its first results page.
The more people interact with a website, spend time on it, and even share the link on social media, the more reasons Google recommends it to online loan searchers.
3. Flexible Repayment Plan
Checking the interest rate is a given. It is one of the most checked information before a borrower applies for a loan. But many still forget to ask about the repayment options. An excellent online lender will have a calculator to easily see the interest rate, payment terms, and even the possible due dates.
Some online lenders offer weekly, bi-weekly and monthly payments. You can choose the payment term you can pay with ease. Simply think of the payment plan you can meet without sacrificing your basic needs.
Let’s say you get your salary every month. Then you can opt for the monthly installment. This way, you can immediately pay your loan once you get your paycheck.
Remember to check your payment options as well. Nowadays, you can pay your loan online through bank apps. This option will help you avoid missed due dates since you can pay anywhere you are.
4. Required Documents and Information
You can expect an online loan lender to ask for your proof of billing, proof of income, and ID cards. Lenders are not allowed to keep your legal documents, but they can have a copy. If you feel that your information is unsafe, you can ask them to delete your files should your loan application be declined.
A list of requirements can be overwhelming, but that is because a lender must also validate your information. They need to ensure that you are giving them the right address and if you have the means to pay your loan.
Let’s say someone you didn’t know asked to borrow cash from you. Wouldn’t you want to know first if the borrower is telling you the right information? Does he have a regular source of income to pay you on time? These are the questions you would naturally ask.
So if a lender doesn’t care much about validating your information, consider it a red flag. Lenders who are only too eager to loan you cash with steep interest and inflexible payment plans are loan sharks.
5. Social Media Reviews
Word of mouth still works. Though most reviews are likely to be negative, there should always be positive reviews. People tend to leave a review when they are not happy with a service.
Take a look at how the lender deals with these reviews. Look around for positive ones, too, since a reputable lender will also have those even though happy customers will tend to forget leaving a thank you note.
And while you are on their social media platforms, note their posts and interactions with the people following them. Are they posting helpful information or just promotional posts? Do they answer inquiries in the comments section?
Looking for a legit online lender is overwhelming. And it is more than checking their registration. A money lender jurong may have a license, but that does not mean it will always abide by the law. So you have to be keen when looking for an online lender. Take note of what the previous clients said to have realistic expectations.
Take your time researching for a great online lender to save yourself from future financial stress. A loan is a useful financial tool to help you during a money crisis, not to make it worse.