When it comes to taking out a payday loan, choosing a reliable lender is absolutely essential. You don’t just want a loan from any lender – you want a loan from a lender who can appreciate and understand your circumstances, and provide you with the information and advice you need to make informed and responsible borrowing decisions.

Customer shaking hands with a reliable payday loan lender

Choosing a reliable payday loan lender can help you to get access to the right rates, information and service that you deserve.

In this blog, we’ll share five signs you should look out for to identify a reliable payday loan lender.

Clear and detailed information on every web page

A reliable payday loan lender will provide you with all the information you need to make an informed decision. Interest rates, annual percentage rate (APR), repayment sums, late payment information, contact information for issue resolution and any additional charges will be displayed prominently on the website of a reliable lender. If the information is unclear, incomplete, misleading or too good to be true, alarm bells should be ringing.

A secure website

As you will be sharing a lot of personal and financial information, the lender you choose must have a secure website. Take the time to investigate the lender’s website and make sure it’s secure. If the website’s address begins with “https” instead of “http”, the site is secure (you will see a small padlock next to the website address) and any data transferred from your web browser to the website is encrypted.

For more information on how to recognise whether a website is or isn’t secure, please download our free eBook:Four proactive measures to protect you from online fraud.

Furthermore, reliable payday loan lenders will have you – the customer – at the heart of what they do and will ensure that any information you provide is kept safe and secure in the context of the Data Protection Act and all applicable data protection regulation. The lender’s privacy policy should be available on their website for further information, and will disclose how it gathers, uses, discloses, and manages your data.

 

Rates and costs are displayed and explained

When comparing online lenders, it’s important to review the loan cost and terms. Reliable payday loan lenders will not only ensure that you understand what interest rates you are paying, but will also help you to calculate how much you will be repaying. For example, lenders that give you a loan cost calculator should also show a representative example.

If it’s not clear what your interest rate is, or what the additional costs/fees associated with the loan are, it’s yet another sign that you may not necessarily be dealing with a reliable lender.

Belong to credible organisations

Reliable lenders should be members of credible trade associations for consumer credit lending, such as the Consumer Finance Association (CFA), Consumer Credit Trade Association (CCTA) or the Finance & Leasing Association (FLA).  If they are part of these associations, you should find the relevant logos at the top or bottom of their website.

Are well-established and have a history of good lending

Just because a lender is popular doesn’t mean that they will be able to provide the level of service you need. Instead of just choosing a popular lender, look for a lender that is established and has a history of good customer reviews. Established lenders will have been in the market for a considerable amount of time and have a strong appreciation for their customers’ circumstances. In addition to this, positive reviews and testimonials will reflect a lender’s commitment to delivering superior customer service and helping their customers to find the right solutions.

Loan comparison websites, such as All The Lenders, will also help you to find the right lender, by providing the details and costs of multiple payday lenders in one place, allowing you to review the options provided in a clear and transparent way.

Taking the time to research the market and consider the points mentioned above will help you to understand just what kind of lender you should be looking for.

At Uncle Buck, our customers are at the heart of everything we do and we pride ourselves on providing superior customer service. Our customers can expect to get all the information they need to make informed and responsible borrowing decisions, and we will work with our customers to find the best solution for their needs. We have provided short-term payday loans since 2004 – and our products and services have evolved over time to meet our customers’ needs.

If you want to find out more about choosing a reliable lender and thereby protecting yourself from online fraud, please download our free eBook: Four proactive measures to protect you from online fraud.

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