Applying for a loan can be a very scary prospect, and it can be daunting enough trying to figure out exactly how much you need, and how you will eventually pay it back. However, another realm of difficulty comes from choosing the perfect company to accept a loan from.
There are so many options out there when it comes to finding good loans, and each option will offer you a very different experience. However, some loan options may appear a little bit too good to be true, and in some cases, they may well be.
On your hunt for a loan, you will want to make sure that you opt for companies that are legitimate and that you can verify the legitimacy of.
As such, you are likely reading this now because you want to know how to go about checking that a loan company is legit, right? If so, then you have come to the perfect place. Today, we are going to take a good look at how you can check the legitimacy of a loan company to keep yourself and your finances safe from harm!
How Do You Check That A Loan Company Is Legitimate?
There are a few things that you can look out for in order to verify the legitimacy of a loan company. Let’s take a look at these factors now.
Check For FCA Registration
One of the first things you should do if you live in the UK, and want to find out more about a loan company is to check FCA records.
FCA refers to the Financial Conduct Authority, and this is an official body that is responsible for checking that all businesses that deal with money are doing so while meeting basic legal requirements. In order for any financial service to operate in an official capacity, it must first be registered with the FCA.
Because official financial services must be registered with the FCA, it is actually possible to gain access to a full list of all businesses that are registered with it! Heading to this list will allow you to check that a lender is registered, which can help to give you quick and efficient peace of mind.
Can You Contact The Lender?
Usually, loan companies will operate out of legitimate business premises, such as an office building and most legitimate companies will be more than willing to make the address of this office clear, should you want to visit them personally.
This means that, if you find a loan company that is a little coy about giving out their business address, you may be barking up the wrong tree, and you may be in contact with an illegitimate lender.
If the only way that you can get in contact with a particular loan company is via phone or email, then it is worth avoiding them entirely, and instead heading for a lender that you can directly contact at a physical address.
Businesses without addresses may not have any employees at all and may be run by just one person, at home, with the intention of scamming people out of their money.
Check Reviews
One of the best ways that you can check the legitimacy of any product or service online is to look for previous customer reviews. Of course, you will want to look at reviews and testimonials that aren’t simply hosted on the business’s website, as they can easily change and edit those to suit their perfect business image.
Try to look for reviews on trusted websites like Google, TrustPilot, and Yelp. If there is a high number of reviews from verified customers, and if a number of them are positive, then you should very much be in the clear. There may be a few negative reviews, but this is inevitable, and if there are fewer negative reviews than positive ones, then it should not be of any concern to you.
Trust Yourself
One of the best ways that you can check the legitimacy of any product or service online is to look for previous customer reviews. Of course, you will want to look at reviews and testimonials that aren’t simply hosted on the business’s website, as they can easily change and edit those to suit their perfect business image.
Try to look for reviews on trusted websites like Google, TrustPilot, and Yelp. If there is a high number of reviews from verified customers, and if a number of them are positive, then you should very much be in the clear.
There may be a few negative reviews, but this is inevitable, and if there are fewer negative reviews than positive ones, then it should not be of any concern to you.
To Wrap Up
There we have it. These are just a few of the very best and strongest ways that you can check the legitimacy of a money lending company to ensure that you don’t find yourself accepting any money from any shaky businesses.
Generally, the best thing to do whenever you encounter a financial service that you are unsure about is to check if it is FCA registered. If there is no sign that a specific business is FCA registered, then street clear of it.