June 24, 2012 There are horror stories all over about how payday loans and private money lenders but when faced with an emergency this type of loan can be a life saver in a time of need. Besides reading reviews on the internet, checking the Better Business Bureau website that are a few tell-tale signs that will show if the money lenders are running a replicable business or if they are just scamming consumers. Every “moneylender” charges an interest rate whether it is a bank, credit union or payday loan lender and the interest rates will always vary. A bank or credit union loan will always have a lower rate because the criteria for the loan depend on the borrower’s credit score. The better the credit score is the lower the interest rate will be. But to get the best interest rate there is a lot of paperwork that is required and the loan cannot be generated within 24 hours. Payday loans will always have a higher credit rate because there is minimal paperwork required and the loan can be deposited into an account within a day. There are many different money lenders online so always compare interest rates. Some companies do charge additional fees that are associated with the loan. A replicable moneylender will always have the interest rate separate from the fees they are charging. If there are no additional fees listed compare the interest rate total with the ending total to make sure that there are no hidden fees. In case hidden fees are found cancel the loan and look for another company that is upfront with their information. Every payday loan lender typical has a very short application but before even filing out the application there are a few key elements to look for on the website that can help decipher if they are replicable or not. Common sense is always the best defense. If any company asks for money upfront they are definitely not looking out for the consumer’s best interest and should be avoided at all cost. All the pertinent information should be clearly visible on the website. Along with interest rate and fees the length of the loan and conditions of the loan such as penalties for non-payment should be clearly written. There should always be a customer service number available for any questions or concerns. Before even filing out the application call the customer care center to make sure that it is a valid number and answered by a live person. This assures that the company is available for any concerns that may arise over the life of the loan. Most all payday loan lenders require that the applicant have an active checking account and be employed. Any company that does not ask for employment history and monthly income but only ask for checking information, social security numbers and private information is a sure sign that they will probably never generate the loan but use the information for illegal purposes. Watch this video and find out more about how a payday lending works.