Payday Loan Providers – Sorting the Wheat from the Chaff

With over 72,000 payday loan providers to choose from, it is no wonder that consumers are confused on where to go. Nowadays, people see payday loan ads all over the internet, in the newspapers, and even on the radio. Each company promises to have the best rates and the fastest delivery time. However, no one has the ability to check 72,000 companies. Therefore, people who are searching for the best payday loans will have to use some sort of strategy to separate the wheat from the chaff. They can do such by the process of elimination.
Proximity
The first step one should take in searching for a reputable payday loan provider is narrowing the search down to providers in the same state if possible. The closer an institution is to the consumer, the easier it will be for the consumer to visit if any problems arise. Some payday lenders operate only online. Working with a company that has a physical location is always best, but if the online establishment offers some type of special benefit, then using it might be acceptable. Working with that kind of provider would require extra research.
Making a List
The individual looking for the provider should create a list of approximately five payday loan providers. The person can find the companies to put on the list by speaking with family members, friends and co-workers. He or she may also conduct an online search for providers in the area. The local banks may also refer a client to a payday lender if they cannot approve a personal loan for that person. Once the individual develops a list, then he or she can begin conducting research.
Conduct Research
Conducting research involves visiting the website of each provider. Each site should have information about the application process and a FAQ section for the most common consumer inquiries. Some sites even specify their annual percentage rates, and they display online tools so that the consumer knows exactly how much money he or she will be paying back. Providers that give this information willingly are most likely honourable establishments.
A trustworthy provider will also have its contact information listed. The site should provide the physical address of the establishment along with the telephone number. An online contact form is an added feature that a respectable site would offer to its potential clients. Such added features make the lender seem reliable.
Consumer Reviews
Consumers are the people who interact with lenders on a daily basis. These people would provide the most accurate information about a payday loan provider’s ethics, customer service level, transaction time and processes. The consumer should read as may testimonials and user comments as possible, to measure the integrity of the providers on the list. The person should take all negative comments very seriously and reconsider dealing with any company that has been accused of thievery or dishonesty. Such would be a red flag that the person needing a loan should not ignore.
Credibility
When looking to separate providers and isolate the best one, a consumer should look for signs of credibility on the web page. Affiliation with any honourable organization or site should boost a provider’s rank on the list. A reputable company will have a listing with the Better Business Bureau, the Chamber of Commerce, and various financial organizations.
Customer Service
High quality customer service is a very important element for payday loan provider to have. The way a person can gauge this is to call the number and observe how the person on the other end reacts. If that person is friendly and welcoming, then the company has a good customer interaction culture. If the individual assists the customer by explaining processes in an understandable manner, then that company truly cares about its customers. If the wait for someone to get on the phone is short, then the organization is efficient.
The perfect payday loan provider is the one that scores highest where applicable, and the one that provides the most benefits. After a person has gone through the process of elimination and found the best provider, he or she may apply for a payday advance from that provider.
Tips for Success
Payday loan clients must be sure to always read the terms in the agreement before signing it. Additionally, the person should ask the provider about any areas that are unclear. The provider has an obligation to explain every aspect of the process to the customer in a way that he or she can understand. After that person signs the contract, the deal is done.
Clients who have positive experience with payday loan providers should take the time out to notify the public by placing a comment. A person who has a negative experience should do the same. This will let other consumers know whom they can trust as a provider.
Sources
http://www.telegraph.co.uk/finance/personalfinance/borrowing/10090175/Payday-lenders-are-thriving-because-there-is-no-credible-alternative.html
http://payday-loan-service-review.toptenreviews.com/
About the author: When looking for a payday loan, make sure the provider has a responisble lending policy. For more questions, feel free to reach out to Jaquie Dymock, Country Manager of Ferratum Australia.