LOS ANGELES, April 4, 2022 (Newswire.com) - Online loans make it easy for borrowers to get a loan from the comfort of home. Many online loan applications are straightforward, and borrowers can often get approved and funded in as little as one day. But keep in mind that not all online lenders are legitimate. So, it's wise to be cautious and do some research before moving forward with a lender to avoid scammers and find legit online loans. With that in mind, here are four ways to help borrowers figure out whether online lenders and loans are legitimate.
1. The lender is registered in the borrower's state
The Federal Trade Commission (FTC) requires all lenders to register in any state they do business in. Most legitimate lenders have a page on their website listing their registrations, so borrowers should check the lender's site. If they can't find that information, the lender may not be legitimate. Borrowers can also check the Nationwide Multistate Licensing System (NMLS) or reach out to their state's relevant regulator to verify.
2. They have positive Google reviews
Google reviews can be a great place to start when researching lenders. Borrowers should get a loan from a lender with lots of positive reviews. If a lender has an overwhelming number of 1-star reviews and negative comments, they may not be legitimate. That said, they could also be a real lender but not worth working with. No reviews at all could also be a bad sign. This could indicate the lender is a scammer pretending to be a real lender.
3. They have a strong Better Business Bureau rating
The Better Business Bureau, or BBB, is a non-profit website dedicated to helping consumers find trustworthy businesses, such as lenders.
The BBB helps borrowers find legitimate lenders in a few ways. It gives businesses a grade from A+ to F, and lets customers rate companies out of 5 stars and leave reviews and complaints. Any lenders with low grades, low ratings, and numerous bad reviews and complaints are probably worth avoiding.
Additionally, the BBB gives out accreditation to businesses that meet certain standards. Look for this accreditation as well when comparing lenders.
4. They don't demand upfront payment
Legitimate lenders may charge borrowers application fees when they apply, but they deduct those from the loan balance. They will never ask borrowers to pay anything before they apply. So, if a lender is demanding payment before a borrower applies for a loan, they are most likely not legitimate.
Avoid scams and get a legitimate online loan
As more people take advantage of online loans, more illegitimate lenders are popping up. Fortunately, borrowers can avoid them by doing some research beforehand. They can start out by seeing if the lender is licensed in their state, then check out the lender's Google reviews and BBB profile. Finally, borrowers should make sure the lender isn't asking for any upfront payment before applying. Borrowers that spend some extra time evaluating lenders will be able to find a legitimate lender that can get them the funds they need.
Advance America is a safe and legitimate lender that offers a variety of online loans, from cash advances and installment loans to title loans and lines of credit. With an A+ Better Business Bureau rating and countless positive reviews on Google and Trustpilot, Advance America is proud to offer borrowers fast cash loans and great customer service.
Notice: Information provided in this article is for information purposes only. Consult your financial advisor about your financial circumstances.
Source: Advance America