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The lending market is quite diverse, especially on the personal side. There are tons of options available to anyone in need of a loan, regardless of the sum and other factors. And as with many other things in life, the market has unfortunately also found itself infested with less reputable lenders who’re doing their best to exploit clueless borrowers and make them pay much more than they should.
If you’re looking to take out a loan, you must make sure that you’re working with a reputed, licensed lender. There will generally be lots of those on the market, and you should never have to resort to working with any shady lenders that may or may not be trying to scam you.
You Know Who You’re Working with
The main benefit of using a financial directory like Smart Loan is that they only show reputable licensed moneylendersFrom the legal perspective, to customer reviews, you’ll know exactly what the company is about before committing to any deals with them. And this will be important, because it will give you the peace of mind that you likely need in a time like this. It’s never easy having to deal with situations where a loan is looming over your shoulders, and it can get even more challenging when the lender turns out to be a bad one.
Reliable Service
Licensed lenders also value the quality of the services they provide, because their reputation matters a lot to them. To that end, you can expect great service from most licensed lenders on the market, and you’ll never have to deal with any issues like delayed responses, poor availability of the people servicing you, and more. And if you do run into any issues on that front, you’ll have the reassurance that the lender will be interested in your feedback, and will actually take it into consideration.
Stable Interest Rates
Interest rates are a very important topic when dealing with loans, and they can fluctuate a lot across the market. Most reputable lenders tend to pride themselves on their ability to provide quality deals to their customers, so you can expect your interest rates to be very predictable and steady. You won’t have to deal with any significant fluctuations, even if the market is currently going through a more turbulent time. Of course, this also depends on your credit score and other similar factors.
Everything Is Legal
This one should go without saying, but it’s still good to reiterate the point. Working with reputed lenders means that you’re eliminating the risk of any shady, illegal deals, and you’ll know exactly what’s going on at any point of your contract. Many less reputable lenders will try various tricks to fool you into paying more, and they may even be illegal. They don’t care, because their business is not legitimate as a whole. But when you’re working with someone with a solid reputation, this never has to be an issue.
No Spam
Bad lenders tend to spam your phone, e-mail, mailbox and anything else they can find. Even when you’re making all payments on time, the messages will keep rolling in. That’s not the case with licensed lenders though. They will only contact you when there’s an actual issue with your contract, and you’ll be able to move on with your life without having to constantly look over your shoulder and worry if a lender might try to contact you again.
Easy Approval
Last but not least, you’re usually looking at a much simpler, more streamlined approval process when dealing with licensed lenders. They know the situation you’re working with, and they understand the importance of providing a fast, reliable service. Because of this, you can expect to get approved fast and with minimal hassle. Just make sure that you have everything lined up on your end, like a good credit score and other similar factors.
In the end, you stand to gain a lot from choosing a reputed, licensed lender to work with as opposed to a random company that has only been around for a short while and is trying to make a quick buck. It might be tempting to go with an unlicensed lender, but remember that there’s always a string attached to those offers.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Abhinav Paliwal CEO at PayNet Systems- A Neo Banking Software Platform
12 August
Raktim Singh Senior Industry Principal at Infosys
09 August
Alex Kreger Founder & CEO at UXDA
Steve Morgan Banking Industry Market Lead at Pegasystems
08 August
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