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Three Signs of a Reputable Loan Provider

December 18, 2015 by Ninja in Tips

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No matter how carefully you save, or how sensibly you spend, there is always the possibility of an unexpected bill or a surprise redundancy throwing a spanner in the works. When disaster strikes, it can derail even the best laid financial plans in an instant, and sometimes you have no option but to ask for help.

Loans are one of the most popular forms of borrowing amongst those in need, and they can make all the difference when it comes to tiding you over until you can get back on your feet again.

Unfortunately, however, we’ve all heard the horror stories about disreputable lenders. But you don’t need to struggle in silence; if you require some help, and you don’t want to end up making things worse, then here are three signs to look out for when it comes to choosing a reputable lender…

#1: Interest Rates

When it comes to taking out a loan, it’s vitally important to check all of the terms and conditions before you sign on the dotted line, and interest rates are something that you can’t afford to ignore. Irrespective of the initial amount that you borrow, they can rapidly increase the size of your debt if you haven’t paid attention, so take a long, hard look at them before you make your final decision.

#2: Communication

Interest rates are one rather obvious way to differentiate responsible providers from those looking to make a quick buck, but a more subtle difference lies in their attitude to accountability. Reputable lenders are not afraid to engage with their clients, and they’ll often have a public presence because they’re not worried about grievances being aired by unhappy borrowers. Indeed, companies like Smart-Pig even have Facebook pages, meaning that you can communicate with them easily and openly in the eyes of all.

#3: Reputation

Thirdly and finally, you’ll discover that most disreputable companies have a reputation online, and this can be uncovered quite easily by conducting a simple Google search. Horror stories are rarely kept under wraps, and these should be readily available for you to read through if they exist. If you want to take things one step further, you could also post asking for opinions on specialist forums. Again, you’ll find that most people are quite happy to share their experiences, and these will prove invaluable in helping you to avoid the wrong sort of lenders.

Choose a reputable provider today with these handy hints to guide you.