While borrowing at this time can be helpful and valuable to many, to some, this choice can end up being a disaster.
To learn how to be safe from getting into a situation that goes sideways, one needs to understand the following:
- What brings about the increase in demand for loans, which leads to a rise in charges and higher activity of fraudsters
- How to reduce the risk of getting a more expensive loan
- How to stay away from fraudulent lenders
Keeping these points in mind, a loan can be much safer and of better value for the borrower. Nonetheless, it is also essential to know that it’s always wise only to borrow loans of amounts that you are most likely to repay on time.
That said, let’s discuss the three key points in detail as relevant to this context.
Understanding why Loans are in a Huge Demand around Thanksgiving
Thanksgiving is a widely celebrated festival, and soon after thanksgiving comes Christmas which goes a step further. From a few weeks before this festive season, the trend for loans goes up quite sharply. This trend is seen in personal loans and almost all sorts of loans aimed at individuals, businesses, and even conglomerates and governments.
Many entities serving in the lending industry typically aim at more than one market sector and provide various lending services. And just as in any other industry, a rise in demand leads to an increase in the charges (fees, interest rates, etc.) of loans.
Whether you deal with a bank, a broker, or a direct lender, it is very likely that the loan offers around this festive season are more expensive than similar loan offers in other parts of the year, much the way that a lot of different seasonal things are as well.
Reducing the Risk associated with Higher Expenses
One significant risk associated with borrowing during the peak season, like the weeks around Thanksgiving Day, is the higher expenses that any loan is likely to attract due to the higher demand. Here are some ideas using which this risk can be reduced:
- Borrow early – Planning and borrowing the required amount of money earlier will likely get you a better loan offer.
- Choose a shorter tenure loan – Loans with shorter tenure are likely to accrue lesser interest. If affordable for you, such loans may help you save money.
- Look for loan offers – Some lenders may run special offers during peak seasons to gain a better market share. However, ensuring that the request is transparent and legitimate and that you understand the benefits is essential.
Choose the cheapest reliable loan, comparing all available options properly.
Reducing the Risk Associated with Fraud
With a rise in demand, there’s always a potential for a surge in malpractices and frauds. This is an unavoidable consequence of capitalism which otherwise has tons of benefits. However, this risk is relatively easy to mitigate. The safest way is to only borrow from legitimate lenders from whom you can get what you need. Here’s how to be confident in dealing with a legitimate lender:
- Banks are typically the safest lenders of loans. However, if you have a poor credit history or need a loan in a hurry and paying a higher charge for your loan is the only option, a non-bank direct lender loan is what you may need.
- Company salary advances are also a safe option for those working with a company that offers such a loan.
- Some trustworthy mortgage brokers and loan matching services are valuable sources to get a direct lender loan. However, their services are likely to add to the cost.
- When choosing a direct lender, it is vital to know their legitimacy, which can be done in these ways:
- Check for online presence
- Check for good customer feedback online
- Avoid lenders making suspiciously good offers.
- Look for the “secured” symbol and “https://” before the URL of the lender’s website
- Look for transparency in any loan offer that you may receive
- Stay away from lenders that demand a deposit for loans.
Choose a Legitimate Lender of Loans for this Thanksgiving
We at CashAmericaToday are a trusted and legitimate lender of loans serving thousands of satisfied customers each year. During the festive period, weeks before Thanksgiving Day, we conducted surveys and competition analysis to understand how we could best serve our customers and gain more new customers. We strive to be competent and provide welcoming deals. To get in touch with us, you need to leave a query through an online loan application or contact us, and we shall assist you with an offer to suit your needs.