How To Apply For Loans Safely

How To Apply For Loans Safely

Borrowing money is one of those things that nobody wants to do, but unfortunately, most of us will end up turning to a loan at some point. Whether you are borrowing for an emergency, borrowing for something like a car or even your education there should always be a specific reason to do so. With prices of things we need being so high, sometimes borrowing a loan is an option we result in taking. If you find yourself in this position, you need to ensure you are borrowing safely and are dealing with legitimate lenders or brokers. Thankfully, we have put together a few ways to help you stay on the safe side of the lending industry.

FCA Register

If you have found a specific financial provider that you feel suits you the best, the first thing you should do before applying online is to check the FCA register. According to the Financial Conduct Authority, nearly all of the UK’s financial service activities must be authorised in order to to be in line with the regulations.

So, checking this register allows you to get a better idea as to whether or not the provider you have chosen is legitimate. Even so, the website offers a list of common scams in order to guide you in the right direction. To check if the company is on the register, all you need to do is visit the website and search for either the reference number or even the companies name. If it does not appear, we advise you to perhaps take another look and see if you find any other lenders which suit you in order to apply for loans safely.

Red Flag Indicators

There are plenty of red flags which we advise you should look out for when it comes to borrowing money and applying for loans. Some of them are very obvious and some of them are quite discreet. One common red flag is any kind of upfront costs, legitimate payday or short term lenders who are there to help you will not require an upfront cost.

Another example is unprofessionalism, from the website to the personal emails, everything should look professional. Therefore, if you find information that doesn’t look correct make sure to double-check it before applying.

Lastly, credit checks. If a lender does not conduct a credit check throughout the process of the application then it is an automatic red flag. Lenders need to perform a credit check to ensure that the applicant is financially stable and can manage the repayments. This is because lenders need to be completely comfortable lending you money and also need to guarantee that you can manage without being sent into further debt.

Think it through

When in need of some sort of financial support there are plenty more aspects to it than just finding a lender online and applying.  If you have visited all other alternative options like borrowing from friends and family or using past savings and they are not available then you should start considering a loan. But, they really should be a last resort as they could cause further issues.

Following this with, finding a lender or broker who suits you. There are plenty of financial service providers out there but there may only be a few who offer the amount you are looking for, the type of loan or even the duration period which works best with your lifestyle.

Here at LoanPig, we stand out from the crowd by offering lower amounts to borrow and even longer repayment durations. Therefore catering to those who need help the most. So, if you are on the hunt for a reputable payday lender, we can help!