How Do I Know If an Online Lender is Legitimate? - There are many online lenders that offer various types of loans, but not all of them are legitimate. Some may be scams that try to trick you into paying fees or sharing your personal information. To avoid falling victim to such frauds, you should do some research before applying for a loan or accepting an offer.
Here are some steps you can take to check if an online lender is legitimate:
- Look for a physical address and contact information on the lender’s website, and make sure they match on all platforms.
- Check the lender’s website for a padlock icon and a web address that starts with HTTPS, which indicate a secure connection.
- Search for the lender’s name on the Better Business Bureau website, and look for their rating, accreditation, customer reviews, and complaints.
- Contact your state attorney general’s office or bank regulator to see if the lender is registered and licensed to operate in your state.
- Compare the loan offer with other options, and look for red flags such as guaranteed approval, no credit check, upfront fees, or unusually high or low interest rates.
You can also use a loan comparison tool1 or a loan payoff calculator1 to help you find the best loan option for your needs. Remember, if a loan offer sounds too good to be true, it probably is. Be careful and cautious when dealing with online lenders, and don’t hesitate to ask questions or seek professional advice if you are unsure.