The rules of finance seem to change by the day, and the process of getting a loan certainly transformed on the day that the Internet was born.
Because of the recent economic slowdown in the United States, many people have hit rough spots in their financial road and have hurt their credit rating as a result.
Fortunately, the quantity of lenders that can still help you dig your way out of a hole, or acquire something that you really want, has increased significantly in the past few years. In particular, the number of online lenders for people with bad credit has exploded, but you need to be careful as you shop around.
Tips for Finding Online Lenders
Here are a few tips for finding the best online lenders.
When dealing with online loan companies, be sure to have their best offer in hand, preferably confirmed in writing, before you pay anything. Any lender that asks for payment on your part before the offer is finalized in writing is committing fraud.
Stay away from any online lenders that promise a loan before you even apply. The lenders that make this claim are scamming people with bad credit because they are an easy target. Many such lenders contact people by phone first, so just hang up if a loan is “guaranteed.”
Don’t ever give your credit card account number, bank account numbers or Social Security number over the phone or to an Internet site unless you have some familiarity with the company that wants this information and you know exactly why such information is needed.
Many websites offer to do the shopping for you as you seek a lender. This multiplies your time and effort. After you fill out an application, the site will contact you with the offers of various online lenders for bad credit, then you can choose the best offer.
Remember, just because a lender has a website does not make it legitimate. Do some research on any lender that you consider before choosing one. A great way to do this is to do a search for “Horror Stories about __________ Loans.” If this type of search produces several testimonials about poor terms and monstrous interest rates, steer clear of the lender unless you are truly desperate.
Finally, there are many consumer credit organizations online that can help you to decide whether or not a bad credit lender is legitimate. Take advantage of the hard work that these organizations have done and avoid the lenders on their watch lists.