Choose a lender the smart way

Your coaches explain the importance of using a responsible lender and then give you tips on how to identify one.

CassieAlways be careful when selecting a lender. A responsible lender can help you gain financial flexibility and achieve your goals. Unfortunately, there are a few lenders you should watch out for.

MichaelIt’s called predatory lending. Anyone can be a target, knowing the warning signs to look for can help you to avoid being a victim.

CassieSo how do you find a responsible lender? It’s a good idea to look for an established company with a good reputation. Ask a money-savvy friend, family member, or work associate for a referral. Or, ask your local bank or employer.

A responsible lender

MichaelOnly work with lenders who answer all your questions, who put everything in writing, and who give you time to shop and compare costs and rates before you sign a loan agreement. These are all good signs of a responsible lender.

CassieYou’ll have to live up to the terms of the loan agreement you sign, so it’s critical that you understand exactly what you’re signing and avoid predatory lenders. Ask your financial or legal advisor to help you.

Characteristics of responsible lenders

  • Established company
  • Good reputation
  • Answers your questions
  • Everything in writing
  • Gives you time to decide

Also, remember to ask sources you trust for referrals.

Learn more about loans in the topic Using Credit to Your Advantage.

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