A short-term loan can be viewed as the ideal ‘pass and collect $200’ card. It allows you to make a snap decision on investments regardless of where your funds are currently tied up and prevents you from missing any golden opportunities. But when you’re thinking about borrowing to invest, choosing a financier can be a bit confusing especially given that there are so many of them out there. So if you’re in the market for a short-term loan look for these five things in a potential lender.
With so much information at our fingertips, it’s quite surprising to find that many people don’t actually do their homework on lenders. All it takes is a simple Google search of the lender’s name and the word ‘reviews.’ If they have a bad reputation, it will be quite obvious you shouldn’t do business with them. But don’t take every review as an indication of how the business is run. Every lender will get a few bad reviews from disgruntled customers or applicants who were refused a loan. They may even get a few fake ones from competitors so keep an eye out for suspicious looking ones.
A lender who doesn’t discriminate based on credit ratings
Contrary to popular belief, not every short-term lender will actually let people with bad credit ratings borrow from them. Thankfully though, lenders such as Spotter Loans understand the nature of bad credit and are happy to lend to people with outstanding defaults or even multiple defaults. While this is, of course, important to those with a poor credit rating, it is also worth looking into even if you’re in good shape financially. You never know when an old unpaid bill could cause some damage to your rating.
Acceptable rates and penalties
The terms of a short-term loan are usually fairly straightforward and can be found on the lender’s website. Read these carefully and make sure that you fully understand the charges and interest rates involved before making an application. All lenders will have penalty fees for late payments which is perfectly understandable. However, not all penalties are the same, so look for those that are reasonable.
An extensive FAQ page
While we can advise you on the things to look for, we can’t predict what questions of your own you may have. This is why it’s essential that any lender website has an extensive FAQ page that lists all the usual questions that new customers may have. Even if you think you don’t have any questions at all, it’s a good idea to read through this page as you may come across some points you hadn’t considered.
Easy to contact
Any lender should have multiple points of contact that are easy to locate on their website. There should be at least three ways to get in touch such as an email address, a contact form, and a phone number. The phone number is the most important one. If a lender doesn’t have one, then you have to wonder why they don’t want to make it available to their clients.
There are of course other factors that you may want to look out for but generally speaking, searching for these five things should narrow your search down to reputable lenders only. So if your money is all locked up in investments and you need a quick cash injection for a golden investment opportunity, consider the short-term loan. It could be exactly what you’re looking for.