Legit Online Loans

What is a Legit Online Loan? 

A legit online loan is a type of loan that is offered by a lender that is certified to provide loans legally. In other words, the lender abides by all the rules and regulations of the state in which it is operating. It happens to even the best of us that we may need to access quick short-term loans and our only option would be any available online lenders. It could be that you need to shop for new clothes for your new job or carry out some repairs on your vehicle. Whatever the case may be, getting an online loan may be the only way to get that extra cash that you so much need. For you to get an online loan, it is important for you to know the legit online lenders that will give you loans at affordable rates. It is pertinent that you are well informed about a lot of online lenders that are willing to lend you money but quite a number of these lenders are not legitimate. Making sure you are getting a legit online loan will go a long way in keeping you away from more financial troubles.

Things to look out for in a legit online loan 

  1. Operating License

This is the most important thing to consider when looking for legit online loans. There are different laws governing each state on how lenders should operate. State licenses govern loan companies and ensure that they follow rules. Any legit online lender must have an operating license within the state it operates. How do you know if an online lender has an operating license? You do not simply ask and then you believe them. Get in touch with the office of the attorney general to obtain more information. Several lenders are operating without a license and you sure do not want to be caught in the web of borrowing from an illegitimate lender. There are a lot of downsides to borrowing from an online lender that does not have a license to operate which includes not following laws that protect you as a lender. You may also be subjected to very high interest rates or penalties that you may find difficult to pay. Summarily, a business without a license is a business that the laws of a region does not have jurisdiction over and as such they do not operate under any known laws, therefore, they cannot be vouched for. So, you should endeavor to find out if the lender you are considering has the proper license needed to operate.

  1. Accreditation by Better Business Bureau (BBB)

Better Business Bureau is a non-profit organization that has been in existence for more than a hundred years so its opinion on businesses is highly trusted. It helps you identify businesses that can be trusted. So, if you want to know if the lender you are considering is legit, checking them out on BBB would be a great option. Most online lenders have been accredited on BBB so if there is an online lender that does not have BBB accreditation, they really do not have any excuse.

 

  1. Contact details

This is another way to identify legit online loans. A legitimate online lender should have a physical address, a working phone number and a responsive email support system. If an online lender falls short of any of these, you really should think twice before going with them.

 

  1. Fees and Charges

A legit online loan should have all of its contracts, fees and charges clearly set out from the get-go. If there are hidden charges or surprise fees as you move forward, run while you still can. You really do not want to have surprise fees springing up on your every now and then, thereby putting you in more financial troubles than the existing loan that you have.

Bottom line

It is quite easy to find a legit online loan provider and being legit is not all there is to online loans. As much as having a legitimate license protects you from practices that are predatory or fraudulent or practices that can hurt your credit report in the long run, you should as well look beyond the license. It is not about lending you money, you should borrow money from online loan providers that will offer you great rates, great loan services and help you secure a good financial future.