Many lenders today offer guaranteed loans which do not require the submission of collateral. When compared to secured loans, unsecured guaranteed loans may be limited to a smaller value but they can be a huge help during times of emergencies. Also called payday loans or bad credit loans, these loans are expected to be paid back within a short period.
In many States, there are specific lending laws to protect consumers against extreme interest rates and fees. Nevertheless, not all lenders that offer unsecured bad credit loans are legitimate. Some could be scammers who are out to make money. If you need to borrow money, below are reminders on how you can avoid being scammed:
1. Check if the company has a physical location. Beware of lenders that solely conduct its lending operations over the internet. Even though a lender has a website, physical location is a basic requirement in securing a business license. If possible, personally visit the address posted on the business website.
2. Test the company’s telephone customer service. A dedicated business telephone number is also an important factor in determining a trust-worthy lender. See to it that the lending company has a customer service hotline number that you call up at anytime you need to.
3. Check with the Better Business Bureau. Even online businesses need to register with the BBB so before conducting any transaction with any lender, check its record from the BBB.
4. Check with your State’s Attorney General’s Office. You can also check the list of registered businesses from your local Attorney General’s office. If a particular lending company is not listed, it’s best to find a new lender with credentials.
5. Do advanced research. Do some readings about the lending laws applicable to your State. This way, you can check if a prospective lender abides by these laws. Visit the NCSL’s (National Conference of State Legislatures) (http://www.ncsl.org/default.aspx?tabid=12473 ) website for a summary of payday lending laws in your State.
6. Read the fine print. Before applying for an unsecured bad credit loan, carefully check the terms and conditions of your lender, particularly with regards to repayment. See to it that you will not be charged with hidden fees or penalties.
7. Check the lender’s reputation. A trusted lending company will surely win the trust of its customers and good word about the lender will spread. You can check online for reviews on bad credit lending companies or ask for recommendations from the people you know.
About the Author
Sandra Thompson is a loan consultant with Unsecured Loans Now and has been providing consumers and business owners with Unsecured Loans since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Business Loans and Unsecured Credit Cards. Copyright 2010.
