Money Lenders For Online Credit

USA Credit Guide
Part 1 The Rise Of American Lenders
Part 2 Online Credit Services In The USA
Part 3 Money Lenders For Online Credit

The US has different layers of legislation regarding lending. Banking is regulated at a federal level but also at a state level. In comparison to countries like the UK or Japan, both of which have only one financial agency overseeing savings, investments and lending, the US has a much more complex system. In this article we look at:

  • How lending laws differ by state
  • How to find a responsible lender
  • What to be aware of when choosing your lender
  • How to find out more about online credit

Lending laws differ by state

There are 38 US states which have their own rules and regulations regarding payday loans and in the remaining states, payday loans are totally illegal. You can find out more about the individual regulations for the states and the supervisory organizations which allow payday loans by visiting our state lending laws section.

Payday loans are regulated by states individually and are illegal in 12 states

So, no matter where you live you can find out about how to get access to online lending.

Finding a responsible lender

One of the most important factors when borrowing money is to find a legal and responsible lender which conducts the loan business in the correct manner and which adheres to the laws and regulations pertaining to each state.

A lender is shaking the hand of a new customer

It is important to be aware that there are some illegal lenders who will offer loans in exchange for a small fee paid in advance. These types of offers are all scams and should be avoided at all costs. Additionally, beware of online lenders who have used a loophole in the law by basing their companies on Native American reservations.

These lenders are offering payday loans in states where it is illegal but they are now systematically being pursued by the government and lawsuits are pending. Always make sure that your chosen lender follows all the regulations and rules covering legal lending in your home state.

Always make sure that your chosen lender follows all the regulations and rules covering legal lending in your home state.

A responsible lender will conduct background credit checks, ensure that all applicants meet the required criteria with regard to age limits and the qualifying salary. In addition, a reputable lender will be up front about the terms and conditions of the loan with regard to interest rates, penalty charges and fees and the total cost of borrowing.

A basic introduction to online credit

There is a wealth of information about online credit available on the Internet but our credit college guide has been designed to pull together the most important factors about online borrowing.

A lady is researching online credit options before applying for a loan

If you have never used the Internet for financial matters, it can help you to find your way through the morass of details and hopefully answer your questions. This will enable you to make an informed choice before committing to a credit agreement.

Each article of the credit college covers a different aspect about online borrowing with more detail about subjects like credit history and credit scoring, interest rates, understanding how short term loans work and the dangers of debt. The terminology that is used for payday loans is also explained.

USA Credit Guide
Part 1 The Rise Of American Lenders
Part 2 Online Credit Services In The USA
Part 3 Money Lenders For Online Credit

About the author

David Warren

David Warren is an expert on personal loans across the United States. His career in banking has helped make David the loans specialist that he is today. He shares his analysis and insight into the personal finance industry on onlinecreditusa.com