Honest Loan Companies

Most loans providers in the UK are legitimate honest loan companies who are registered money lenders and specialise in offering credit to UK people in need of money. It is often worthwhile shopping around for a good deal on your loan, but don't stray too far afield when looking for credit. Try to stick to the loan companies offered by the main loan comparison websites - these will generally all be reputable and honest loan companies who you can deal with on a reputable level. Bear in mind however that the cost of credit can still vary massively between honest loan companies, even if you are a good credit customer. Of course, if you are a poor credit customer then your cost of credit will be higher than that of a good credit customer simpy because you are perceived as a higher risk to the lender, so they price their money accordingly.

Good credit customers generally do not need to worry about whether the loan company they select is honest or not, as most of the time they will only be comparing the main major loan providers as well as the banks - they can really hunt out the best deal given they are such a low risk. It is really more the poor credit customers who need to be more careful when selecting which loan company to take credit from. As a poor credit customer's options of credit will be far more restricted and expensive, it is much more important that they read the small print on the loan agreement very carefully to understand what they are signing, along with what security they are offering, and if the loan company appears 'honest'.

If you do not read the small print, you could find yourself offering security over personal property that the lender is then entitled to take ownership of should you default on your loan and not be in a position to pay the money back to the loan company. Whilst this does not define an honest or dishonest loan company, you should still be very clear what you are signing in exchange for credit.

If you are struggling for credit even from bad credit loan providers, it is even more important that you are vigilant with who you accept money from. It is this sector that are most at risk of loan companies which are not honest, or even officially registered loan companies. At this level, you could be getting offers from individuals who call themselves money lenders but are nothing more than loan sharks. These loan sharks often offer doorstep loans - they will lend you hard cash, you may not need a bank account, you may not even sign anything, but by taking that money you may be putting yourself at great risk. There may not be an agreed official document - the money lender just charging you whatever daily rate they feel they want to (which may be unreasonably high), and worse still if you do not pay back your debts and mounting interest charges on time you may receive threats of violence or even actual violence. Unregistered money lenders should therefore be avoided at all costs, as they are not regulated and therefore operate illegally they charge whatever interest they want, and whilst their loan agreement may not stand up in a court of law (basically meaning you do not really have to pay the money back legally), they may often go to extreme lengths to try and get their money back from you.

This is the very unsavoury end of the loan industry however, and best avoided. In all instances it is highly recommended dealing with only official well-known loan companies that many people have heard of and also have plenty of loan reviews registered on the internet - even if you are bad credit. Always research the loan company you are thinking of applying for a loan through and you should quickly be able to tell if others also feel they are an honest loan company or not. At this level, most loan companies will be 'honest' - it is really then just down to if others feel the loan company are 'honest' in how they conduct their general business, customer care, how they charge additional fees, if they make these clear enough in the loan agreement paperwork, etc. Rather than if the loan company is genuine or not.