How to Identify a Bad Credit Secured Personal Loan Company Online

By | March 28, 2013

Many people with bad credit especially those who are in dire need of a secured personal loan from a non-traditional lender have wondered whether they can possibly identify a reliable lender online. Thus, follow these 3 important steps that you can find a trustworthy lender on the Internet:

Step 1: Find out whether their business is registered in your state to do business

If you have found a lender’s name from an advertisement – i.e. from online or off-line classifieds, you need to make sure that their business is registered in your state to operate their secured loan lending service.  For instance, if you live in California – visit the Department of Financial Institution (DFI) of California website, and then click “Resources & Online Tools” tab. When you are directed to a new page, click “Multiple Department License Lookup” at the “Online Tools” table.

Based on the “Multiple Department License Lookup” page, type-in the lender’s name and choose “Company Name”, and then click “Find” to begin the search process. If the name does not appear in the search results page, then it means that this lender is definitely not trustable.  Always make sure that the lender has a valid license and possesses the right license type.

Step 2: Check out their business via Better Business Bureau (BBB) directory

Once you’ve found out that a lender has a valid business license to do business at your area, it’s time to check out their reputation by viewing their business report via BBB directory. From that report, you can possibly find out the lender’s performance which is rated based on BBB rating, contact details, products and services and many more. A reliable bad credit secured personal loan company usually has a high BBB rating (at least an “A” grade) and has no issues with their clients.

Step 3: Look for related information on the Internet – social networking sites and etc.

You cannot be too complacent with the information that you have right now. Therefore, you need to look for more relevant resources to find out whether you can possibly get the best loan deals from a reputable lender. There are few online resources that you should consider including Google Maps, YouTube, Facebook and other social networking sites. You can get as many reviews of a lender as possible from these social networking sites and you need to spend some time to filter out information which seems irrelevant.

If you have found out too many negative feedbacks against a particular lender, it’s wise that you should look for another non-traditional lender.

In conclusion, a reliable bad credit personal loan lender is normally characterized as a lender who grants legitimate loan package with affordable loan repayments, and receives high ratings from respective business and non-business reviewers.

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