{"id":26555,"date":"2023-04-06T15:02:50","date_gmt":"2023-04-06T14:02:50","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=26555"},"modified":"2023-04-06T15:02:51","modified_gmt":"2023-04-06T14:02:51","slug":"how-to-find-out-if-a-loan-company-is-legit-or-not","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/","title":{"rendered":"How To Find Out If a Loan Company Is Legit or Not?"},"content":{"rendered":"\n<p>With so many scams around, it\u2019s hard to know if a loan company you\u2019re dealing with is real or fake. No one wants to lose their money to scammers or become a victim of fraud. That&#8217;s why we&#8217;ve put together this guide. Here, we\u2019ll help you check if the company you want to borrow from is legit.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f2962c49674\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f2962c49674\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/#1_does_the_loan_company_ask_for_a_credit_check\" >1. Does The Loan Company Ask for a Credit Check?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/#2_do_they_have_an_address_and_contact_details\" >2. Do They Have an Address and Contact Details?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/#3_are_they_registered_with_the_financial_conduct_authority_fca\" >3. Are They Registered with the Financial Conduct Authority (FCA)?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/#4_what_are_the_loans_terms_and_conditions\" >4. What Are the Loan\u2019s Terms and Conditions?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/#5_search_for_information_about_the_company_on_google\" >5. Search for Information About the Company on Google<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/how-to-find-out-if-a-loan-company-is-legit-or-not\/#in_conclusion\" >In conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"1-does-the-loan-company-ask-for-a-credit-check\"><span class=\"ez-toc-section\" id=\"1_does_the_loan_company_ask_for_a_credit_check\"><\/span><strong>1. Does The Loan Company Ask for a Credit Check?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Almost all legitimate lenders will carry out a credit check before approving your loan application. If the loan company says they won\u2019t be doing a credit check, then be wary. There\u2019s no such thing as a free lunch. No legitimate loan company will give you a loan without doing any kind of checks on you first.<\/p>\n\n\n\n<p>However, don\u2019t confuse this with the search not appearing on your credit file. When a company tells you that applying won\u2019t impact your credit score, it might mean that they\u2019re carrying out a <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/soft-credit-check\/\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/soft-credit-check\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>soft search<\/strong><\/a>. Some loan companies do this to see if you meet their lending criteria. Always read the small print on the lenders site to be sure. Some companies or lenders even do a <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/hard-credit-check\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>hard credit check<\/strong><\/a> which can leave a mark on your credit file.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2-do-they-have-an-address-and-contact-details\"><span class=\"ez-toc-section\" id=\"2_do_they_have_an_address_and_contact_details\"><\/span><strong>2. Do They Have an Address and Contact Details?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>All companies have to operate from somewhere. They should have contact details that show how to contact them and where they are based. Start by looking at the contact page on their website. It\u2019ll show how to get in touch with them.<\/p>\n\n\n\n<p>If there\u2019s no address on their website, look on Companies\u2019 House. There you\u2019ll find details of the directors, and their registered office address. Scammers won\u2019t want you to find them, so they\u2019ll avoid giving you any contact information if they can.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3-are-they-registered-with-the-financial-conduct-authority-fca\"><span class=\"ez-toc-section\" id=\"3_are_they_registered_with_the_financial_conduct_authority_fca\"><\/span><strong>3. Are They Registered with the Financial Conduct Authority (FCA)?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Another good check is to see if they\u2019re approved by the FCA. If they are, they\u2019d be listed on the <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/#how_do_i_know_if_a_company_is_registered_with_the_fca\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/#how_do_i_know_if_a_company_is_registered_with_the_fca\" rel=\"noreferrer noopener\">FCA register<\/a>. This register shows details of firms, individuals and other businesses. Being on this list means that they are regulated by the FCA. If the loan company you\u2019re about to apply with isn\u2019t on there, it\u2019s probably best to avoid them.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"4-what-are-the-loan-s-terms-and-conditions\"><span class=\"ez-toc-section\" id=\"4_what_are_the_loans_terms_and_conditions\"><\/span><strong>4. What Are the Loan\u2019s Terms and Conditions?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When you apply for a loan, the terms and conditions of the loan should be clear for you to see. They should show you what\u2019s in the contract. The information they would include is as follows:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The amount you\u2019re borrowing.<\/li>\n\n\n\n<li>The fees you\u2019ll pay.<\/li>\n\n\n\n<li>Any potential penalty charges.<\/li>\n\n\n\n<li>Your interest rate and the total amount of interest you\u2019ll pay.<\/li>\n\n\n\n<li>The total cost of your loan.<\/li>\n<\/ul>\n\n\n\n<p>If a company asks you to make any payment up front, before your loan has been approved, avoid them. It\u2019s likely to be a loan scam company. They&#8217;re probably trying to get a quick payment off you before you find them out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"5-search-for-information-about-the-company-on-google\"><span class=\"ez-toc-section\" id=\"5_search_for_information_about_the_company_on_google\"><\/span><strong>5. Search for Information About the Company on Google<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Enter the company name on Google or Bing and see what comes up for them. Check for all the reviews given on the companies\u2019 online business listing. Look on independent review websites rather than just reading the ones that are on the company&#8217;s own business profile.<\/p>\n\n\n\n<p>Reading other people\u2019s experiences will give you an indication of how real the company is.<\/p>\n\n\n\n<p>Have a look on their social media channels too. Look at what\u2019s being posted and how long they\u2019ve been posting for. All this will help give you a better idea of whether they\u2019re scammers.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"in-conclusion\"><span class=\"ez-toc-section\" id=\"in_conclusion\"><\/span><strong>In conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Taking out a loan, no matter the amount, is a serious thing. It\u2019s important that you choose the right company to borrow from. Remember, if you\u2019re in any doubt, don\u2019t take the risk. There are lots of really good lenders around who are there to help you. If you need a <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/short-term-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">short term loan<\/a>, Lending Stream could be the right choice for you!<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> Please note, we are not providing financial advice. Our blogs are written for informational purposes only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>With so many scams around, it\u2019s hard to know if a loan company you\u2019re dealing with is real or fake. No one wants to lose their money to scammers or become a victim of fraud. That&#8217;s why we&#8217;ve put together this guide. Here, we\u2019ll help you check if the company you want to borrow from [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":26556,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-26555","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26555"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=26555"}],"version-history":[{"count":3,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26555\/revisions"}],"predecessor-version":[{"id":27229,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/26555\/revisions\/27229"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/26556"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=26555"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=26555"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=26555"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}