It can sometimes be difficult to trust any banks. When we hear in the news about wealthy bankers’ bonuses and people getting into debt and then banks going bust, we can worry about who to trust. Some of us might be inclined to trust some lenders more than others. However, it is worth thinking carefully about how you judge lenders and whether you are doing it in the right way.
Many people base trust in companies on how well-known they are. For example, they may find that they do not want to take a loan out with a company that they have not heard of. While this makes logical sense, it is important to think about why we have heard of the lenders. It might be that we once read a newspaper article about them saying how bad they were but the name stuck in our head and the reason did not. It is therefore worth thinking about whether knowing of a lender is really any sort of indication of whether we should trust them. It is also important to note that if a lender is more well-known they might be able to afford to make a few mistakes as they have a reputation so it does not matter. A lender that is not well-known will be building their reputation and relaying on good service to build them up so maybe they could be better. It may not be as easy to judge as we may think.
Some people like to talk to others about their borrowing experiences to try to et an idea of whether they should use the same lenders. This can be really useful because people we know, are more likely to be honest with us and they will want to protect us from lenders they feel are not suitable for us. It is good to find out what they like and dislike as to establish why they are or are not recommending a particular lender. This is because they may have different needs to you and you need to be able to judge whether you agree with their point of view.
Lenders you have used
It can be the case that we like to use lenders that we have used in the past. If we have had a good experience, that is! We may also want to avoid lenders where we have had a bad experience. This is very understandable and if this has happened we can use those experiences to shape what we want in a good lender. Consider what was good or bad about those lenders and you will be able to judge other lenders based on those criteria.
Highly rated lenders
There are websites and other places online where you can find rating and comparisons of lenders. These can be useful as it will help you to see which lenders are available and what others think of them. However, even if there are detailed reviews you need to be cautious. Remember firstly, that not everyone has the same criteria when judging lenders than you and so you may find that a highly rated one is just not right for you. Also, there can be bas on these sites. Not only might the lenders themselves make reviews and therefore bias the results but the website owners might show bias too. As they get paid commission on leads that are made as a result of the reviews, then they might be inclined to give a better rating or review to those that pay them more commission. They might even choose to eliminate some lenders that pay low or no commission at all. There may also be some lenders that do not appear on these sorts of sites and only deal with borrowers directly.
It can also be easy to think those lenders that advertise will be more trustworthy. It could be thought because they want to keep up a good reputation or something like this. However, there is no reason to think this is the case, as surely all lenders want people to think they are trustworthy but some just may decide not to advertise and to keep their costs down and prices lower as a result.
So, it can be tricky to figure out who is most trustworthy. But do some research, look at their websites and just get a feel by talking to people and looking online. It will take some time, but it is worth it as you could end up saving money and having a much better borrowing experience. Not only will you find out if you feel you can trust them but you will find out more about what lenders are available and what they are offering so it should help you to choose the most appropriate lender and loans for you.