A personal loan may be just what you need to consolidate the debt or finance a large purchase. what is a good debt consolidation company?
Nowadays you can apply for debt consolidation in many places.
But when you ask for it on the Internet, it is more difficult to distinguish a scam from a legitimate offer.
To help you avoid being scammed we will give you some of the signs of personal loan scams and what you can do to avoid them.
Why is it important to know the warning signs?
Loan scams can take many different forms and knowing what warning signs to look out for can help you avoid them.
How we know how to get a loan on the Internet is very fast and convenient, but we have to monitor our security.
If you are thinking of applying for a loan, but you are afraid of being scammed and end up worse than you were.
Do not worry, today in this article you will realize how you can be sure, that the lender you choose is legitimate.
Recognizing fraudulent offers is the first step to avoid financial scams.
Not everything that we offer online is true, many fake lenders go to the stash to steal your money.
Would you recognize a lender who is a fraudster? …
How can you detect scams on personal loans before they affect you? Today we will give you the keys to avoid being scammed when applying for a loan. Click to tweet
False Internet lenders
Many people turn to personal loans when faced with financial difficulties.
Once approved, personal loans offer borrowers some money to meet urgent cash needs.
Scammers often try to take advantage of the vulnerability of some loan applicants, most people who are looking for quick money.
Most loan scammers take everything they can from loan applicants, including personal information with the intention of selling it.
How to avoid becoming a victim of a personal loan scam, when you are in need of cash?
We tell you through the following tips:
7 Tips to detect scams in online loans
The first step to avoid being scammed is to know how loans work on the Internet.
A personal loan on the Internet works much like any other type of loan.
You borrow a certain amount of money from a bank, or an online lender, so you can pay for the things you need.
An agreement will be drafted with the details of the refund, the interest rates and other details about this loan.
This whole process does not require the loan applicant to pay a sum in advance since it is illegal for a lender to request a prepayment.
You should never pay money in advance when applying for a loan or credit.
Here are some warnings that you should keep in mind when applying for a personal loan:
1. Check the credit requirements
Renowned lenders will not deliver money to borrowers without first making sure they have the ability to pay again.
One of the ways they do it is to verify the credit history of the applicants.
Your credit score and credit history are a strong indication of whether you are able to keep up with your bills and determine the type of interest rate.
2. Ask if there are charges in advance
When taking a personal loan, it is a good idea to find out if there is any fee.
Although not all lenders charge loan opening fees, some do and it is important to understand how they are calculated before signing the loan contract.
3. Look for transparency in their commissions.
It is best to pay attention to any lender who asks you to pay a processing fee, just to request a loan.
This is not legal, it should be clear, that you should never give money in advance.
Some scammers charge borrowers money in advance, and when they realize that the loan is not real, the lender has already disappeared with your money.
This is important. You should never give money in advance to anyone, so they can grant you a loan.
4. Consider the sales tactics of the lender
Credit lenders are in business to earn money on the interest they charge to borrowers.
If you get a valuation on the personal loan rates of a bank or an online lender, rest assured that they will continue with you and that they will not cheat you.
However, if you are being pressured to complete a loan application or submit your personal information, it may be time to look for a different lender.
The high-pressure tactics are a hallmark of personal loan scams do not be fooled.
5. Be careful if your offer expires soon and you must act at the time
If you face an “urgent offer”, it is likely that you have found a scam.
The legitimate lenders offer constant rates that depend on your credit.
The pressure tactics as mentioned above are designed to prompt you to act quickly before you can detect a scam in progress.
6. Do not trust if they tell you that approval is guaranteed
There is no such thing as a secured loan.
For approval, a lender will usually verify your credit and verify your information.
Scam artists attract their victims with guaranteed approval so they can charge fraudulent initial fees.
7. Check the reputation of the lender
It is important that you look for a serious, well-known company.
Before borrowing money from any personal loan lender, it is a good idea to find out as much as possible about the lender company.
There are some different ways that you can thoroughly investigate a lender.
There are different forums of people who have used their services, read their opinions carefully.
They can give you an idea of how a company treats its customers.
What are phishing scams?
Among the most common personal loan frauds are those that involve phishing fraudsters for your personal or financial information.
In a typical phishing scam, is when you visit a site or open a form that appears to be from a legitimate lender.
You can even talk on the phone with a caller saying you need to “confirm” the details of your loan.
In any case, if the scam is successful, it tricks you into providing your social security number, bank account numbers or passwords, which is then used by a scammer to steal your money or your identity.
How to avoid being “phishing”?
A basic rule for applying for a loan online is to confirm that you are on an encrypted page.
Look for a padlock to the left of the URL of your page, which in turn should start with “https”, which indicates a secure site.
If you do not see any, the site you are in may not be reliable.
In general, avoid clicking on the links in any unsolicited email or pop-up window.
If you do not trust the origin of an email or a phone call, contact the lender’s customer service directly to inquire about the contact.
And if you can not confirm a lender, an offer or even the loan details, move away and look elsewhere.
It is better not to have a loan than to risk the possibility of your identity being stolen and your bank account depleted.
Keep in mind…
Although anyone can be a potential victim of a fraud, it is the borrowers with bad credit who are most likely to be scammed.
After being denied by multiple lenders, they are more likely to respond favorably to a request from any lender willing to grant them a loan, even without a credit check.
The typical loan scam involves a promise to issue a loan in exchange for a fee advance.
The fee, which the scammer could call a loan origination fee or an insurance rate, can be as low as € 50 or as high as several hundred euros, depending on the amount of the loan.
The borrower is instructed to send the money, usually using a prepaid debit card, and is promised to enter the money once the scammer receives the money.
But money never comes. By the time the borrower realizes he has been scammed, the scammer has disappeared with the money.
What to do if you have been scammed?
If it turns out that you are the victim of a personal loan scam, it is best to act quickly to minimize the damage.
You can submit a report to the national police.
You can then contact each of the three major credit reporting agencies to notify them that your personal information may have been compromised.
You should also check your credit report regularly, monitor your bank accounts, and credit card account statements.
Waiting too long to act can give scammers more time to misuse your information.
And to finish…
These are the signs that you are not dealing with a legitimate lender.
I hope this information can be really useful and help you avoid being scammed with your personal loan.
If you have the knowledge that it should happen when you apply for a personal loan, then it is much easier to know when you are in the presence of a scammer.