When applying for a loan online never complete an application for a company who is asking for an upfront fee. Many companies will ask you to fill in an application form and then ask for a processing fee. On many occasions the loan company will ask for a fee to be taken on a date in the future, and ask for your bank details on the same day as applying for a loan. This is still an upfront fee and you should not provide your bank details to any broker. However there are plenty of payday loans online lenders where you can apply directly to lenders to avoid paying up front fees.
No Telephone Number
Any legitimate online loan company will display either a free phone or geographical telephone number. Many websites asking for an upfront fee do not display a telephone number making it difficult for the applicant to get a refund if their loan application does not proceed. Some companies will provide a telephone number which charges the caller per minute. The cost of the telephone calls should be clearly displayed. These websites should be avoided at all times, and alternatives should be sought where telephone numbers are clearly advertised and calls are charged at local rates.
Again any legitimate loan company will have a ‘Contact Us’ page on their website. On the ‘Contact Us’ page the loan company should supply would be borrowers with a full postal address, along with other details such as an email address and phone number.
When applying for a loan if you are using a broker, always ask how many lenders they have access to. A genuine broker should be able to tell you the names of the loan companies they work with. Avoid any brokers or online websites which state they have hundreds of lenders (there are not that many!), and also any company who will not divulge which lenders they work with.
Do not apply on any loan website that has an ‘.org.uk’ suffix (the last part of the website address). Any site that has ‘.org.uk’ will not have a consumer credit licence issued by the Office of Fair Trading, and therefore is trading illegally. These suffixes are intended for charitable organisations but unfortunately some loan companies have acquired these websites.
When making a loan application online, you should carefully select the website you use. You should only make one or a maximum of two applications at the same time and follow through the progress of your application with the new short term loan lenders. If you make too many applications in a short space of time it can reduce your credit score, as the loan providers will undertake a credit search through a Credit Reference Agency for each application you make.
It is impossible for an online loan service introducer or broker to guarantee that your application has been accepted or approved. Only the lender can approve your application and only after you have signed a credit agreement. Many fee charging companies use this as a tactic prior to asking you for a fee. You should avoid any brokers or introducers that tell you your loan is approved or guaranteed before you have signed a credit agreement with the lender who is offering you the money.