Personal Loans

Signs of a Personal Loan Scam You Should be Aware of

If you want to get a personal loan but don’t want to fall victim to an insidious scam, there are some signs to watch out for. These scams are still very prevalent throughout the UK, so it is therefore a good idea to be on your guard. The more of this information you have, the better off you will be. Many of these scams are quite clever and difficult to recognize unless you arm yourself with the right information.

The Lender Doesn’t Need to Look at Your Credit

While some lenders car more about applicants’ credit than others, no legitimate lender will ever tell you they don’t even need to look at your payment history. This is one of the most common signs that you have come across a scam artist. Any legitimate lender will at least look at your credit. The reason that most lenders look at people’s credit is to assess how much of a liability they are likely to be. A good lender will want reassurance that you are going to pay back the money on time.

They Aren’t Locally Registered

Before you borrow money from a certain lender, you should make sure they are locally registered. If it turns out that they are registered in some other country, there is a good chance that they aren’t legitimate. This is actually one of the more important things that you should check for when doing your research into these individuals.

The Lender Demands Payment for Fees Upfront

There is absolutely no legitimate lender that will ever ask you for payment up front, so keep that in mind. Anyone who demands this is probably just looking to take your money and run. You should only have to pay back your loan with fees at the end of loan period. Never give advanced payment to any lender that you come across.

The Lender Calls or Writes You

If you are contacted by someone claiming to be a legitimate lender by phone or mail, do not respond. This is not a way in which trustworthy and reputable lenders advertise their services. This type of advertising is shady at best, so you will want to avoid anyone who practices it. Each year many people fall for these scammers’ tricks because of how charming and charismatic they can be.

The Website is not Secure

You should never try to borrow from any lender that does not have a secure website. You can always tell if any given site is secure by looking for the “https” before the URL at the top of your web browser. If they do not have a completely secure site, your personal information is at risk in a big way. Even if the lender is not trying to scam you, there is still a good chance that you can have your personal and financial details stolen by a hacker.

There is no Physical Address

When you research the lender and find out that they don’t have a physical address where they are based, something is seriously wrong. You always want to make a point of looking for a payday loans lender that has a physical office or at least address somewhere. Even online-based lenders usually still have physical addresses somewhere nearby. It’s never a good idea to select a certain lender to borrow from before checking this out.

You Are Pressured by the Lender

No reputable lender will ever pressure you into borrowing from them. They might present you with a sales pitch and the options you have, but they won’t ever make you feel uncomfortable. If you start to get that vibe from any lender, it is definitely a good idea to turn and run. You don’t want to do business with anyone who is going to pressure you into making any kind of decision.

The Offer is Expiring Soon

Some less-than-reputable lenders will claim that they have special loan offers that are going to expire soon if you don’t act right away. This is just another tactic of trying to pressure people into borrowing from them. While some of these lenders are legitimate, it is still a disreputable practice and something you want to avoid altogether.

How do I choose a reputable Lender?

There are numerous things to look for in a good lender, such as a sparkling reputation with their customers. Take some time to look for reviews of various lenders before you decide on one in particular. If you want to go with a private lender, you absolutely need to know what sort of reputation they have. You cannot take their word for it, because they are always trying to promote themselves as much as possible. It is a good idea to do the necessary research before making up your mind.