There are many loans on offer. Here’s how to find a safe option no matter what kind of financing you’re looking for:
- Payday loans.
A payday loan is usually paid back in one lump-sum, typically when you receive your next paycheck. Contact your state’s Better Business Bureau (BBB) to find out if the lender you’re considering follows its standards and if there are any unresolved complaints against its name. You can also check if the lender has a valid license by contacting your state’s Department of Financial Institutions.
- Installment loans.
These loans require you to make repayments in installments spread across a scheduled time period, which can be up to a year or more. Ensuring that you’re dealing with a reliable lender when getting an installment loan is crucial. To check the reputability of the lender, you can follow the same process as detailed above for short term lenders.
- Auto title loans.
With an auto title loan, you use your vehicle’s deed to serve as collateral. Make sure you deal with a trusted lender who will not try to take your vehicle without giving you the opportunity to repay the loan. You can check if the lender is trusted by looking for independent reviews online on third-party websites.
- Online cash advance loans.
These are the same as short term loans. Make sure the lender uses data encryption your information when you transfer it online.
- Storefront short term loans.
You can expect a safer transaction when you get a storefront short term loan because you don’t have to worry about your details making it into the wrong hands online. Other than this, finding out if the storefront lender has a valid license is a good step to take.