How to choose an ideal lender for a no-teletrack loan

How to choose an ideal lender for a no-teletrack loan

Numerous lenders in the market offer no teletrack loans. Getting a good lender can be a challenging task if you don’t have proper guidance. Though these lenders have a lot of claims, not all of them are legitimate. You should, therefore, do some research to find the right lender for this type of loan. Here are a few factors that you should be on the lookout for when searching for a no teletrack loan lender.

Licensing

Though lenders of this type do not check your credit rating to approve your loan, they should operate within some legal bounds. Choose a loan lender that is licensed to ascertain that they offer consumer protection. The Financial Conduct Authority licenses and regulates no teletrack loan lenders in the UK.

You can get this information from a lender’s website. Check if there is an FCA authorization number included in the registration information of the company that offers no-teletrack loans. They should also include their business name and contact information for you to access them easily.

The APR rate

After you have confirmed that you are dealing with a regulated loan lender, you need to look at their APR rate. No teletrack lenders refer their interest rates as APR which is the annual percentage rate. This can confuse you since no teletrack loans are repaid within a month.

Note that you are only supposed to pay a fraction of the APR charges depending on the amount of loan you borrow from the lender. A good lender should specify the total amount they expect you to pay within a specific duration. Compare different no teletrack loan lenders and choose the one with the lowest APR.

Hidden charges

Some lenders fail to disclose certain hidden charges in the agreement. Prior investigations before settling for a particular lender can help you identify additional costs. A good lender for a no-teletrack loan should only charge you interest. Confirm that the lender does not charge extra fees to process your loan. You may, however, incur additional fees in the form of penalties if you don’t repay a no-teletrack loan on time.

Security

Are you considering applying for a no teletrack loan from an online lender? Make sure you assess their website to ensure that it is secure. If a lender’s website is safe, you will not have to worry about fraudsters accessing your financial information. The website’s identity should be verified and contain security features.

Reviews

Other people’s feedback regarding a no-teletrack loan lender can help you determine if it is the right lender to work with. Go through people’s reviews to see how they rate the company. You can learn the merits and some of the limitations of dealing with a particular lender before you apply for the loan. Reviews give you first-hand details regarding the experience customers get from dealing with a certain lender. You can learn how the lender treats their customers and also find extra details such as if they have hidden charges.