Payday loans can be an absolute lifesaver. If you’re in a cash pinch, it can be your last line of defence from disaster. Lenders who help people get the money they need when they can’t get it any other way are often taking on a lot of financial risk to do so.
While many lenders in the payday loan industry are willing to work for just a small profit, some lenders are a bit more unscrupulous. If you’re looking to get a payday loan, it’s a good idea to do your homework to make sure you’re working with someone that has a good reputation.
Working with an established, reputable lender will help guarantee that you don’t get ripped off, that your personal information is safe and that the payday loan won’t accidentally damage your credit.
Here’s how to find a reputable lender.
Google the Lender’s Name
Start by doing a standard search on the lender’s name. Browse the first 3 pages and see what kind of information comes up.
Are people generally saying positive things or negative things about this lender? Are people generally happy?
Have there been any scam reports or angry customers? Were their complaints legitimate?
Search the Better Business Bureau
Go to the Better Business Bureau’s website and do a search for the lender’s name. Did anything come up?
Again, what you’re looking for is complaints filed, that show any pattern of exploitation or bad business practices.
Rip Off Report
Do a search on Rip Off Report for your lender’s name. If anything comes up, make sure to read it carefully.
Rip Off Report can be a great resource for researching companies, but take the information on its site with a grain of salt. Since anyone can file a report, competitors might post false information to discourage buyers. They have less of a vetting process than the BBB.
How to Spot Disreputable Dealers
If you find a lender that has been doing business for several years, chances are if they’ve been doing unscrupulous things someone will have filed a report. In fact, if a business is taking advantage of its customers, you’ll likely find dozens of reports.
In other words, the two main things you want to look for when you’re getting a payday loan lender is at least a year of being in business and a near zero complaint rate.
If the lender matches both of these criteria, there’s a very good chance they’re a reputable lender that you can do business with.