5 ways to recognize Personal Loan scams

Are you going to apply for a Personal Loan? We all know this popular say-“Haste makes waste”. While applying for a loan, you shouldn’t make haste. There are multiple companies offering the services of proving personal loan but how many of them are providing services legally? That’s question makes a silence of few seconds because you’re going to avail a huge amount and of course, you don’t want any fake company receives your documents. Check these five ways to recognize personal loan scams

  • No credit check required

When it comes to applying for a personal loan then lenders ask for your income proof and credit score. How can we say you lender going to sanction you a loan without verifying your credit history? An applicant with bad credit score can also loan but at the higher interest rate (if credit score is more than bad then the bank or lender will reject the application). Either visit a reputed lender or before applying for a loan get a wise advice from any loan professional.

  • The lender is registered or not

Obviously,a reputed or legal lender will promote his/her services on an official level or via media sources. You will easily find out whether that particular financial company or services in your area is registered or not. We aren’t saying that you shouldn’t step ahead to a new lender but before grabbing services from any new name once research carefully. If any personal company is in your city or state then registration is a must.

  • If a lender asks for a direct payment

If we talk about top personal companies, then they charge an origination fee (1% and 8%) but this matters that how and when you pay those fees. We would like to tell that loan fees are usually paid out of the loan sum which means you no need give a cheque or direct cash to the lender. Keep in mind that lender may give this fee another name such as application or processing fee. Simply if any lender asks for a direct payment then better avoid him/her and avail a loan from some renowned company.

  • Navigate to secured websites

Nowadays no one visits any branch or office first every on check about the company’s profile on the internet. If you’re looking for a personal loan and check about that company or lender on the internet, make sure the website from where you’re getting the information is secured. There are two ways to check, first if you see a padlock symbol on the website that indicates website isn’t secured. One more way, if you open up a site and sees that the website address is without ‘https’. For example, if there’s a company known as ‘Get Loan’ then its website should be https://www.getloan.com/. As you open the site, you will get a caution from your browser that site’s certificate has expired or you might see red flags. You should avoid the sites with misspelled URLs

  • The lender gives you a deadline

If any lender explains about a personal loan with any special offer or deadline then you might avail a loan from the wrong place. Reputed companies generally don’t offer any special offer (banks provide offer but we can easily detect which one is fake and which isn’t. Bank’s offers are genuine). No well-known lender or financial company will pressurize you to apply for a loan or to make a quick decision. Availing a huge amount isn’t a small thing. Of course, you need time to make an accurate decision.