In-store loan lenders and online credit financiers differ in many ways. No matter which type of lender you are opting for, make sure that you research the money lending market well and research more about the lender.
In this post, we’ve briefly discussed a few important things that a loan applicant must know.
- Creditworthiness – High credit scores are needed by banks and several traditional creditors, but online loan lenders approve applicants with not-so-perfect credit score.
- Repayment policy – Read repayment policy carefully because short term loans need to be repaid around your monthly payday. Get to know what the conditions for delayed payments are.
- State regulations – Most of the trusted private lenders in the UK are registered with FCA. You can relay on such lenders to provide you straight-forward deals.
You will find reputable and FCA authorized lender panel on. The advantages of online short term loans in comparison to in-store lenders are –
Saves time – Online loan application is a few minutes process. As soon as the application gets approved, funds get released immediately.
Easy approval – The minimum credit score that majority of online payday lenders look for is 600. Obviously, there are a few lenders that approve bad credit loans.
Ability for loan comparison – Several loan offers can be compared online, which makes it easy for borrowers to get good interest and terms.
The disadvantages of online short term loans are –
- High interest rates
- No savings on prepayment or paying loan amount early
- Risk of getting scammed
Tips to prevent getting scammed
The loan website may seem legitimate but below are some warning signs that raise suspicion about this online lender.
- Website looks great but writing is unclear because the lender cannot clearly describe loan terms and conditions. You even feel the content is not grammatically proper.
- The lender asks for advance taxes and fees before loan approval.
- Very low interest rate is an obvious sign of scam.
- Borrowers get pressurized to make quick decision indicates you need to move to another lender.
- It is wise to do good research, look for their license and ask about their registration. If they avoid then visit another lender.
- If they ask you to email your sensational finance information then never provide it until you are certain the website is secure.
Short term loans from in-store lenders also have their pros and cons.
Pros
- Physical storefront – You get an idea about the lenders reputation and even know where to find them in case of issues.
- In-store support – Having someone to give you solutions in the store face to face can make it easy.
- Application support – Loan application filling can be confusing. You can easily get help in person.
Cons
- Lengthy process
- No easy and convenient way of comparing different lenders
- Options are limited to your geo-location
Bottom line
Short term loans are helpful during emergency scenarios. Both online and in-store lenders are accessible easily, provided that you fulfill their specific criteria. Make it a point to do a thorough research and compare the available options, in order to ensure that the lender is reliable, before committing to one.
