When you’re in a tight financial spot, taking out a loan from private money lenders could be your best bet for getting the help you need to pay your rent on time or cover another emergency expense. Of course, the internet can be a scary place, with many unscrupulous individuals trying to take advantage of those in need.
So how can you protect your financial interests and get the money you need while selecting private money lenders online? The following tips will help you make a responsible choice.
Even when a short-term loan doesn’t require a credit check, you will need to supply personal information and documentation to qualify for financial assistance. While this is required to verify your identity, you don’t want taking out a loan to hurt your credit score or cause other issues.
The best private money lenders are dedicated to handling your personal and financial information securely. Their website should reflect this by using a secure server (which you can identify by the “https” in the web address). Credit lenders that don’t require a credit check ensure that your loan application won’t hurt your credit score, which will be a major help for future lending needs.
2. Quick Availability
The reason you’re looking for private money lenders in the first place is because you need money fast. When comparing lenders, one of the first things you should compare is how quickly you can get the cash you need.
The best lenders ensure that you can complete the application process and get money wired to your account in under 24 hours — in many cases, you can get your money even faster than that. The sooner you can get your money, the sooner you can resolve your current financial emergency.
3. A True Online Application
Some private money lenders claim to provide full online service, when in reality, they still require you to go to their office to complete the application. Depending on your work schedule and transportation situation, this could be little more than a minor inconvenience — but alternatively, it could be a logistical impossibility.
Thankfully, improvements in web technology have made it so that many lenders allow you to complete your application online. You can input your information and upload important documents from the comfort of your own home so that you don’t have to take off work or navigate public transportation to finish your application.
4. Comprehensive Information
The last thing you need is to find yourself subjected to fines and rate increases that weren’t explained in advance after taking out a short-term loan without warranty. Trustworthy private money lenders have nothing to hide — therefore, their website should include a robust FAQ that details the limits and requirements of your loan.
Providing the information you need to make an informed lending decision (such as interest rates, payment schedules, and so on) is a good indicator that you’re working with a legitimate company.
5. An Approval Process
You may not need to have a good credit score to qualify for a loan, but legitimate private money lenders should still have some form of approval process for you to get your cash. Legitimate lenders will conduct a thorough analysis to ensure that you meet their salary requirements and that you don’t have other financial obligations that would hinder your ability to pay back a loan.
While this keeps some people from qualifying for a loan, it’s also an indicator that the lending company avoids predatory practices that trap individuals in an oppressive debt cycle. In other words, you won’t be given a loan that you can’t afford to pay back.
Navigating the world of online private money lenders can be intimidating, but by adhering to the following tips, you’ll be able to choose a lender that utilizes responsible loan policies. By borrowing responsibly, you’ll be able to quickly get the money you need without your online habits causing further financial stress.