There are many short-term lenders and it can be difficult
knowing which of them you can trust the most. This can partly be because we may
not be so familiar with them in the way that we are with high street lenders.
We may also just know less about them. However, there are ways that you can
work out which you will trust the most so that you can find the best lender to
suit you and your needs.
Consider what you want
It is best to start with thinking about what you expect from a lender. Consider past experiences of borrowing money and what you liked from the lender that you used as well as what you disliked. Also think about what you like about financial companies generally that you might be able to apply to lenders. If you have not borrowed money before then this might be what you will have to do. Even thinking about dealings that you have had with any company might help you to come up with a good plan of what you might want. Consider things like customer service, company history, how long they have existed, how well-known they are and other things that might be important to you. This is a very individual thing so make sure that you consider what is important to you, if anything at all.
Check them out
It is then wise to find out more about the different lenders so that you can decide whether they meet your expectations. For example, you can take a look at their website and see whether you can find out more about them there. You might be able to find out some information on personal finance websites as well. You will probably find things on personal websites and social media pages although you will need to make sure that you are happy with that information as it is not from such a trusted source and may just be one person’s opinion rather than well research factual information. Look at lots of sources of information too so that you can check whether they are in agreement.
Ask people you trust
It can also be worth chatting to people that you trust in order to find out what they think. They might of used a lender themselves or know other people that have and therefore able to know which are best to use. It is really wise to ask people that you know because they are more likely to have your best interests at heart. This means that they are more likely to be honest when they give you information, whereas when you are looking online it is hard to be sure. It might be that some websites are earning commission on leads so will highly praise lenders that pay them more and they may have had no experience of using them. Or they might have positive reviews that are all written by the lenders themselves. Of course, they will not all try this sort of thing and possibly none of them will do it, but it has been known to be done by some businesses so it is important to be aware of the possibility that it might happen so that you can make sure that you do not rely on this sort of thing.
It can be difficult to trust a company that you have not
dealt with before. However, if you are happy that the terms and conditions of
the loan seem fair and legally binding then hopefully you will have no reason
to distrust them. Contact them before taking the loan out though and find out
more about them. This will also help you to get information that will help you
to decide whether you can trust them. It is worth being aware that if you were
investing or saving with them, then trust would be more important as they could
steal your money. With a loan it is them giving you money so it is really they
that need to trust you more than the other way around. Just make sure that you
are totally aware of what they can charge you so that you can make sure that
they stick to their own terms. You will need to make sure that you are aware of
them and that you understand them too. It might be necessary to get some help
with this and terms and conditions are often worded in a very complex way and
it is not always clear what they mean. If you are not sure then get customer
services to explain it to you, but get something in writing that you can use as
proof later, if necessary. Hopefully all will go well though and you will not
need to use it, but it is always good to be prepared just in case.