Although most people think that you should never try to find a payday lender, the fact of the matter is that a payday loan can turn out to be a lifesaver in certain situations. If you are someone who is in financial trouble right now, then you may be looking to find a payday lender who will be able to help you out over the short term. Some payday lenders are more reliable than others, and you need to make sure that you are picking out the right group of people to help you out when you take out that loan. You should always think about these fives signs of a suspicious payday lender while you are looking around for the best deal.
1. The first sign that a certain payday loan provider may not be the best option is if they are not licensed in your state. If you go to the payday loan store and they are not able to provide you with any documents that proves that they are licensed to operate in your state, then you will want to leave immediately. If you are shopping around for payday loans online, then you will need to make sure that the payday lender is licensed in your state and not another state in the country.
2.Does the payday lender have a physical address? It is easy to tell that a payday lender has a physical address when you are looking around in your local area, but it becomes a bit more difficult when you are searching on the Internet. You need to verify the address listed on the website before you take out a loan.
3. Watch out for high late fees and surcharges. If a payday lender has extremely high fees for late payments, then you will want to make sure that you avoid them at all costs. These are the kinds of companies that will try to trap you into endless payments further down the road.
4. You should also try to avoid a payday lender who wants you to pay back your loan far into the future. Anyone who is going to use a payday loan should be looking to pay it back as soon as possible, so anyone who tells you that you should make small payments over a long period of time is just trying to get more money out of you.
5. Try to avoid any payday loan provider who is trying to get you to give away too much of your personal information. There is definitely a lot of info that these companies need to make smart decisions, but you should not have to give them more than two references who are not related to you by blood.
As long as you keep these suspicious activities in your head while you are searching for your loan, you should be able to make a good decision. Don’t let a payday lender push you into a deal that you do not like because you cannot turn back after you sign the dotted line.