How to find a trustworthy payday lender online

Personal emergencies, medical issues, accidents or unfortunate circumstances can happen to anyone at any time without warning. Being caught in an emergency can lead to the need for quick cash to fix the problem. But how do you find money quickly in an emergency? Well, with payday loans you can get quick cash after a short request often within 12 hours or the next day. Some payday lenders go even further and process loans on Sundays.

However, when it comes to applying for a payday loan online, extra care should be taken as you will need to provide personal and sensitive information to someone you do not know and likely, the amount of money you you need to borrow could be relatively high. .

If you live paycheck to paycheck and don’t have enough funds for an urgent emergency, the safest way to borrow a payday loan is to make sure you’re dealing with a reputable dealer and look for red flags. To verify for important tips to help you through the payday loan application process. How will you know if an online application is safe? How do you distinguish between legitimate online payday lenders and scammers? Here are 4 tips to make sure your online financing application is secure.

  1. Do your research and confirm that the company is secure

The truth is that not all payday lenders offer secured loans. In fact, some of them don’t care about security, and working with them can land you in other financial trouble. Before you apply for a payday loan online, do your research first. Find out if the payday lender is trustworthy and if online security is a priority. Read reviews online and check out their ratings on the Better Business Bureau website. Also, check to see if the lender has clearly listed their physical address and phone number on their website. Do your due diligence and make sure the lender is duly licensed by the country or state they are operating from.

  1. Look for Https and a lock icon in the address bar

The easiest way to identify a reputable payday lender’s website is to check online security. Look for HTTPS instead of HTTP in front of the URL as it is more secure when data is shared. Online payday lenders or any other business that requests or stores sensitive customer financial data has an obligation to protect that data. Avoid applying for loans from lenders whose site does not start with HTTPS.

Besides checking HTTPS, also look for the lock icon in the address bar. The lock icon indicates that all data sent to this website will be encrypted. But what does that mean? Simply put, this means that when your data is encrypted, fraudsters won’t be able to steal your data and it can give you peace of mind.

An online payday lender that has security measures in place to ensure that your data is protected when transacting online is proof that they are trustworthy.

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  1. Avoid dangerous loans

Some loans are dangerous and no matter how careful you are, these types of loans will only make your financial problems worse. Beware of online payday lenders who offer you very fast but expensive loans, as these can lead you into a spiral of debt that you may not be able to get out of for years.

Avoid unlicensed payday lenders or lenders who are not licensed to transact in your state but choose to break the law and promise to offer loans and collect interest anywhere in the world. Always check with your state’s regulatory authorities before transacting online. Remember that if you ever have a dispute with a payday lender that is not licensed to operate in your state, you will have no legal recourse.

Any online payday lender that engages in illegal practices should be on your blacklist. By all means, avoid lenders who take advantage of customers because they are desperate and don’t have many options. A payday lender breaking debt collection laws or charging higher interest rates than allowed is a red flag that should not be ignored.

  1. Find a direct lender

Most reputable payday loans come from direct lenders. A direct payday lender is one who handles all aspects of the loan themselves. Loan brokers, on the other hand, connect customers to multiple lenders, which can be very risky because there is no limit to how much your data will be shared. Work with a direct lender who assures you that your data will be held securely in-house.

Brett is the editor of this website. A former business executive turned teacher, activist and writer, Brett also operates a well-followed anonymous Twitter account.