1. State Licensed: Verify that your lender is licensed in your state. A state licensed lender should give you a sense of security as you know your loan is governed by state and federal finance laws in your state. A state licensed lender ensures that companies follow full disclosure of loan terms and is in compliance with truth in lending laws.

2. Professional Affiliation: Check that your lender is a member of a professional affiliation such as the Community Financial Services Association of America, (CFSA) or the Online Lenders Alliance (OLA). These organizations require their members to follow standards of Best Practices and Codes of Conduct such as: full disclosure of loan terms, reasonable cancellation policy, compliance with truth in lending practices, and more.

3. Secure Website. Be sure that your lender's website is secure. Since you are releasing private information online, it is very important that you verify that your online lender's website is secure and that they use internet security technology such as VeriSign or McAfee Secure which can protect you from online predators.

4. Read the Details. Read your lending agreement and pay attention to the fine print such as the Rates & Terms. Remember "the devil is in the details".

Remember to always take the time to research your online lender and always read the details of your loan obligation before signing your agreement. When you have emergency financial situations that we all sometimes have, payday loans are often the low cost alternative to late fees or overdraft and NSF charges. To compare online payday lenders Click Here.