First of all, look for the loan company details on the Internet and study customer reviews. You can also visit the Better Business Bureau website and see the grade of a particular company. Moreover, if you want to be absolutely sure of the legality of the company, then contact the state’s attorney general.
If you find yourself in a difficult life situation and need funding or want to get money in order to cover personal goals, the loan is most often the only suitable option. However, if you have a bad credit history, your options are likely to be limited.
Despite the fact that now there are a huge number of lenders who can help you, there are also scammers who want to benefit from your difficult life situation. Thus, it is very important to know if the company is legitimate.
Points to pay attention to in order to check that the loan company is legitimate
There are several ways you can check if a particular lending company is legal. The easiest of them is to search for it on the Internet and pay attention to customer reviews. You can also check out the loan company on your local BBB site and check with your state’s attorney general to make sure that the lender is registered with the state government agencies. Thus, before applying you should research the legal companies where you can get a loan.
So what do you need to do to verify the legality of a credit company?
- Search for information.
If you have a very bad credit history and you received an offer from a lending company, the first thing to consider is whether you have heard of it at all before. Thus, the best option for you would be to search for data about this company on the Internet and study the reviews of customers who have already dealt with it. If you cannot find any information and reviews about the credit company, most likely you are dealing with scammers and you should not accept this offer.
- Check with BBB.
Remember that even if there is information about a particular loan company on the Internet, this does not mean at all that it is legal, so you should continue to be careful. To find out if you should cooperate with one or another lender – visit the BBB (Better Business Bureau) website. On the site you will be able to see a letter grade and the reasons why the company was rated. Moreover, in some cases, you can even read customer reviews and understand whether this company is right for you or is it worth looking for something else.
- Be careful
Some companies are too aggressive and persistent, so they can persuade you to make a loan decision before you know all the necessary data. Most often, it is the scammers who push borrowers to a quick solution, where they will not have time to notice high interest rates and unfavorable lending conditions. Thus, if for some reason you feel uncomfortable, it is better to refuse the offers of this lender and choose the one that has completely transparent lending terms.
- Contact the state’s attorney general
If the company seems appropriate and legal to you, but you want to be absolutely sure, you can also contact your state attorney general’s office. You probably know that by law all lenders and loan brokers must register with government agencies before operating in a particular state. Thus, if you contact the attorney general and he does not have any information about the company you have chosen, you should refuse this offer and find another lender.
Do loan companies ask for a bank login?
Please note that in some cases lenders will ask for your bank details, however it is not normal for a bank to ask for your online banking login information to check your account. Thus, if you are faced with this, then it may be a scammer who wants to gain access to your account.