Storefront Lenders work with many of the industry’s top lenders. That means we know what sets them apart. We thought it would be useful to loan customers if we have a lending services review option and listed some tips for finding a storefront.
It is important to do your research to find the best lenders in your area before deciding to work with a specific lender.
Here are a few options to consider when shopping around for the best loans:
- Small loans from credit unions
- Small loans from banks
- Alternatives to short-term loans
Small loans from credit unions
Credit unions are great places to get a short-term loan. They are non-profit institutions meant to serve their clients, and many of them will look into your credit score before giving out a loan. Numerous credit unions offer small loans between $200 to $1,000 to borrowers who have poor credit scores.
Small loans from banks
You may be able to get a small loan from a bank. It is not common, but certain banks such as Citibank and PNC offer short-term loans with rate discounts and good interest rates for their current customers. A few alternatives include:
- Assistance from non-profits, charities, religious organizations
- Asking your employer to advance a check
- Side projects that make extra money on the side
- Asking friends and family for a loan.
Legitimacy
When researching for a lender, be sure to look up reviews about their legitimacy. Some payday lenders offer loans with extremely high-interest rates. These loans are called predatory loans, and often harm the customer and his/her credit score if they cannot manage the payments. Reviews should indicate which lenders offer higher interest rates and which don’t.
A predatory lender may look like this:
- He does not check your credit score before approving you for a loan.
- He requires access to your bank account
- He doesn’t tell you the state’s APR before giving you the loan
How to Pre-Qualify for a Short-term Loan
If you pre-qualify for a loan online, you may receive information about the loan’s interest rate, loan amount, and the payments you will need to make. You can take the necessary steps to qualify for a loan and see which lenders offer you the best options.
What Does a Good Lender Do?
Loans are not a light topic of discussion and should be taken seriously when looking for a lender. A good lender does a number of things that make them stand out from the average professional.
- They ask questions
- They communicate and keep you informed
- They stay in touch even after the loan has been signed
- They work within your financial limits
A confident, capable lender will ask you questions about yourself and your financial situation before making any big decisions. They aim to learn details such as your creditworthiness, expenses, budget, and savings so they can make an educated decision about how much you need in loans.
They will also keep you informed about updates regarding your loan, as well as the trends in the financial industry. A smart lender will have knowledge about the industry and is willing to share it with you as well.
A lender who is doing his job will not force you into a loan you cannot afford to pay back. He will stay within your limits and respect your needs. A bad lender might push you into taking out a high-interest rate loan because he does not understand the consequences of this type of predatory loans. The one who makes you feel comfortable and safe during the loan process may be a reputable lender.