Avoid the Dangers of Bad Credit Loans

Posted by admin on April 29, 2011 None comments

I hear what you’re saying – you needed a loan real quick to urgently meet your rental payment or some similar story. And then you got shafted by the lender – high interest rates, late fees, penalty fees, etc kept mounting right? It’s happened to lots of people so you’re not alone. I’ve heard so many stories of finanacial scams - of the consumer type not the Bernie Madoff type - that I’d thought I’d put a blog up with some info to help you all out.

So here are some do’s and don’ts of buying consumer finance products and services online in the UK:

1. Don’t decide on a loan with the first company you come across in the search-engine results or by any other means on the internet;

2. Do research a selection of loan companies by visiting several websites that compare and review lenders and ones with consumer reviews are extremely valuable (often you can find blogs like this one or consumer finance forums that openly discuss and rate loan companies). A good example is this bad credit payday loans site;

3. Don’t believe all reviews you read about on-line – some may be written with malicious intent. Ignore the very best reviews, and ignore the very worst reviews if their numbers are low;

4. Do check that a loan company has the correct credentials to operate in the UK. This is easily done by going to the on-line registry of the OFT (Office of Fair Trading) and searching by a company’s trade name to see if they have a consumer credit licence for the type of lending they are engaged in;

5. Do be wary of loan brokers and make sure to check their credentials, again, through the OFT’s website. Loan brokers more often than not are the ones that cause problems for consumers in the UK. Without you knowing they send your application details to tens if not hundreds of loan companies in an effort to earn a commission and find you a loan. The issue is that often the lenders they give you details too with them continuously spam email you with promotions in a bid to secure your custom – whether you want those emails or not. This is frustrating.

I know these are all obviously things to do but some people get caught up in the heat of the moment and rush to get the first loan they can and then regret it later.