How to Identify Legitimate Payday Loans Lenders?

By: Branden S.

How to identify legitimate payday loans Lenders

Payday loans are very handy when you are in urgent need of money. When you need quick cash, you may find it difficult to get a loan from a conventional source like banks. This is where payday loans are helpful. A payday loan, being a short-term loan is easy to get. A problem that most loan seekers face is the risk of being hoodwinked by scamsters. It is important that you work only with legitimate payday loan lenders. The tips we have will help you easily identify legitimate payday loans lenders.

Tips to identify legitimate payday loans lenders

Here are some useful tips that will help you ensure you work only with legitimate lenders.

1. Check for their licenses and credentials

2. Look for reviews and testimonials

3. Avoid those who ask for advance payments

4. Check for hidden fees and read the fine print

5. It is best to choose a reputed website

Let’s now look at each of these tips in detail

1. Check for their licenses and credentials.

When you take a loan from a payday loan lender, you need to first ensure that they are legitimate. The first step to take for this is to check their credentials and licenses. Depending on state norms, there may be license requirements for payday loan lenders. You need to first understand the norms applicable in your state. Based on that, check if the lenders are licensed.

You can ask for a licensed copy. They may also be registered with the Better Business Bureau. You can visit the database of the bureau and verify that the lender is listed. Other credentials of the lender also need to be verified. You need to find out if the lender has a proper address. This will help you ascertain if it is a genuine company.

2. Look for reviews and testimonials.

Reviews and testimonials tell you how the lender works with its customers. Not only will it tell you about the genuineness of the lender, it will also tell you how the lender functions. The lender may provide testimonials from its past customers that explain how good the lender’s services are. These testimonials are important to ascertain the credibility of the lender.

While testimonials can be provided by the company, reviews are written by customers. These reviews may be found on various websites online. You can also look for reviews on Google. While it is not possible to believe every review posted online, they help you get a general idea of the lender. The reviews would have customers sharing their experiences getting loans from the lender and so are important.

3. Avoid those who ask for advance payments.

There are lenders who promise immediate approval of a loan on payment of an advance. They call this advance fee by different names. If a lender asks you for money, then there is something fishy. A lender who asks money in advance is likely to be a dubious one. Most likely, the lender may be a scammer who is trying to cheat you.

It is also illegal to ask for advance money before getting a loan. The message is clear, avoid all lenders who ask for advance payments.

legitimate payday loans Lenders

4. Check for hidden fees and read the fine print.

You will need to pay interest on the loan you take. Apart from that, there may also be an origination fee or an application fee that the lender charges. This varies from one lender to lender. You need to find out the exact details of the fees charged by lenders. This is important so that you don’t end up having to pay any hidden fees later. You may realize this only at the time of clearing the loan. This is the reason you need to choose a lender who is transparent.

The lender would send you a contract. Go through the contract and the terms carefully. Generally, hidden fees and other such details would be hidden in the fine print. So, you need to study the contract carefully. Never sign a contract without reading every word and line. This will ensure you don’t get trapped by scamsters. This is the best way of ensuring you work with a legitimate payday loan lender.

5. It is best to choose a reputed website.

Instead of scouring a payday loan lender yourself, it is better to work with a reputed website. There are websites that offer a platform for payday loan lenders and applicants to come together. These websites allow applicants to apply online for payday loans. This makes it convenient for loan seekers who can submit a single application online that would be forwarded to different lenders.

They can then compare the loans offered by different lenders, including comparing the fees charged and terms. They can then choose the best loan. This is ideal for both lenders and applicants since lenders can decide who to lend to, while applicants can choose which lender to work with. A reputed website would ensure reliable and trustworthy lenders are registered on the website. This is the best way to ensure you find a legitimate payday loan lender.


From the tips given, you would have understood that using the services of a reputed online provider like Instant Payday NV can help ensure you work only with legitimate payday loan lenders. It assures you that you will not be cheated by scamsters or dubious lenders.

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