How to identify a trustworthy loan company

A Guide to Refinancing Your Home Loan for Debt Consolidation

There are plenty of reasons why you might decide to take out a loan, from needing cash to set up a business, buy a newer car, or revamp your kitchen and bathroom, to wanting cash to fund a special event like a wedding or holiday. Some people just want a short term safety net to cover emergency events like an unexpected medical bill for their pet, while others are looking for a lump sum to pay off expensive store and credit card debts, and there are loans out there designed to meet all of these needs.

Buyer beware!

There may be hundreds of loan companies around who seem more than willing to hand over the cash you need, but they are not all offering the same deals, or a level of service which includes being aware of, and sympathetic to, a prospective borrower’s individual circumstances.

Also Read: Is taking out a personal loan for traveling a good or bad idea?

Let’s make this point very clear – not all loan outlets are as trustworthy as others, even though they may appear to be amazing when you first take a look at their website. As identifying the decent loan companies out there can be a little tricky we’ve put together this list of things to look out for; things that will let you know you can trust the lender you are looking into.

Tip #1 – Look for a loan company with a genuine offline presence

You may find a lead through the net, and apply through their website or via their dedicated call centre, but knowing that real people in actual offices make the final decisions is always a major plus. This tells you that they consider each application on its own merits, and each applicant as an individual.

Tip #2 – Is there any opportunity to negotiate a repayment schedule

Less trustworthy companies tend to look only at the bottom line – what you earn – disregarding other commitments you may have that would make meeting a standard repayment schedule difficult. The reality is that some people have more outgoings than others, so what they can afford comfortably afford to pay back each month can vary quite a lot. A trustworthy company would defiintely not lend more than they are sure you could deal with.

Tip #3 – Look for genuine credentials

Always check a loan company is registered with the appropriate institutions the law requires, such as the Financial Conduct Authority (FCA). Limited companies must be registered at Companies House – where the database is open for public viewing. Do the details there match up with those given to you re address and phone numbers? Of course, these days clever scammers can duplicate these details, so try tricks like calling the officially registered number directly from your phone rather than simply replying to a number left on your phone’s incoming call record.

Borrowing cash is a serious commitment, and many people who need to do so are vulnerable to sharks, cheats and scammers. If you are keen to learn about how to source trustworthy information on borrowing money you can find out more here and help yourself avoid disaster.


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