Before settling on a loan provider, make sure you shop around and do your homework to avoid getting the incorrect loan or the wrong lender. In addition, you should be on the lookout for a few telltale signs to prove the personal loan provider you've selected is not a suitable fit.
1. You’ve Been Charged with a Slew of Unanticipated Costs
If you thought getting a loan from a lender was a simple matter of handing over a check, you're in for some unpleasant surprises. Besides the loan principal and interest, you may be charged a slew of other costs, such as penalties for late payments or bounced checks. You'll also incur various administrative fees like lost-check charges, account-maintenance fees, and ATM charges.
It’s worth mentioning that these fees vary from one provider to another. Some will offer these services for free, while others will charge you for them. It’s essential to read the fine print and ensure you’re not being charged for activities you don’t agree to do.
2. Your Lender Has Been the Target of Several Consumer Complaints
Before making a choice, it’s always a good idea to check out a potential lender’s reputation. One of the easiest ways to do this is to Google the name of the lender and the words “complaint.”
From there, it will bring up various consumer websites and social media pages where customers discuss their experiences with the lender. If you notice that there have been numerous consumer complaints, you may want to reconsider your choice of loan provider or at least research the complaints further.
3. Your Lender Is Taking a Long While to Process Your Loan Application
If your lender takes a long time to process your application, you may be dealing with a scam or a subprime lender. When you're borrowing money for your personal use, you should get the loan you need right away.
Keep in mind that various circumstances will slow down the loan-application process, such as if your credit is less than perfect. Other than that, if you find that your loan provider is working too slowly, you might want to consider taking your business elsewhere.
4. Your Lender Hasn’t Completely Clarified the Details of Your Loan
A reputable lender will clearly outline the terms of your loan and what you need to do to pay it back. If you're uncertain about anything, you should always ask questions. Lenders that offer subprime loans aren't necessarily the most helpful in explaining the loan details.
Be wary of a lender that promises you no fees or a lender that guarantees that you'll pay back your loan faster. If you can't get precise information about your loan or lender, you might be dealing with more trouble than you think.
5. Your Lender Wants You to Get a Loan Greater Than What You Require
It’s an often-overlooked problem that’s worth mentioning that some lenders exist to give borrowers more than they require, which could indicate a possible scam. A lender that pushes you to borrow more than you need will usually be less-than-reputable.
If a lender makes you borrow more than necessary, they will likely try to charge you for services you don't want and can't benefit from. If they’re offering you a loan and you're wondering whether you need it, you may want to take a step back and reconsider it.
Getting a personal loan can be an excellent way to obtain the cash you need in a pinch, and it's a great option to consider if you’ve been turned down for a credit card or need a higher credit limit.
However, you should evaluate your loan options in-depth before committing to a particular loan type or lender. To be sure you're borrowing the right amount of money, it’s best to match the loan amount to your financial needs. If your lender isn't helping you get the cash you need, you may want to take your business elsewhere.
If you’re looking to apply for personal loans in Memphis, TN, Magnolia Finance Co. can make the borrowing process quick and straightforward for you. We understand the time-sensitive need for help when you’re short on funds. That’s why we strive to make same-day loans with clear, straightforward repayment plans. Apply for a loan now!