Topic: Are Online Lenders Safe?

Updated on February 14, 2022

Getting cash together in an emergency can be difficult. If you find yourself with an urgent situation on your hands and payday is still a while away, there are ways in which you can boost your finances. In the future, putting money to one side each month can help when the unexpected arises, but for now, you may need to look at how to get cash quickly. Loans are one way of making sure you can cover the cost of an emergency. There is a range of different loans available from short-term to 24/7 loans that are available no matter what time of day. If you’ve never had to use one of these before, you might be wondering how they work and more importantly if they’re safe. We’ll explore what you can expect when using a payday loans direct lender below. 

What is a direct lender? 

A direct lender can be a financial institution or private company that lends money directly to the customer. Lenders can range from banks or in this case, operate as online private loan companies. Cutting out the middleman and allowing you direct access to lenders online can lead to getting your loan approved faster, which may be the best option for you if you find yourself in a crisis. By only dealing directly with the lender online, you can also get help and support when filling in your application. 

Are they safe to use? 

Online lenders are a popular choice when it comes to needing money quickly. Payday loan companies in the UK are governed by the FCA (Financial Conduct Authority) which is in place to help keep you safe. Online lenders tend to offer loans with a ‘soft-search’ which helps them to check if you can meet the repayment requirements, but also will not show up on your credit report if you decide not to go ahead. If you happen to come across an online lender offering no credit check loans, it is likely that this would be classed as illegal, as the FCA states that entering into an agreement with no credit check is not allowed. 

Is the website secure? 

There are a few things that can give away whether any company is what they say they are in a single glance. One of these things is their website. Making sure a website is secure is a great place to start when deciding if any company is reputable, even more so when you’re looking for a loan. Checking a website URL is legitimate is the first place to start, you could look for the company’s privacy policy, which is usually located at the bottom of the webpage and looking at their ‘Contact Us page could also be helpful. 

Checking that your chosen online lender is FCA registered is essential as this can confirm they are operating as they should be and are governed by laws. If you’re still unsure, check if there are any reviews from past customers to confirm your decision. 

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The Editorial Team at Healthcare Business Today is made up of skilled healthcare writers and experts, led by our managing editor, Daniel Casciato, who has over 25 years of experience in healthcare writing. Since 1998, we have produced compelling and informative content for numerous publications, establishing ourselves as a trusted resource for health and wellness information. We offer readers access to fresh health, medicine, science, and technology developments and the latest in patient news, emphasizing how these developments affect our lives.