Surprisingly, the answer is – YES! Despite the presence of scammers and loan predators, there are safe loans available for anyone who needs extra fund. The first thing you need to ensure, however, is that you’re dealing with a licensed loan provider. One thing that will help you avoid unlikely situations is to find out the red flags. Remember, you are exposed to different risks when borrowing money online, including:
- Losing Money
Scammers who are pretending to be “real lenders” aren’t there to provide financial assistance, rather obtain money from desperate borrowers. One of their strategies is to ask for an upfront fee before the loan application process but it won’t be long until the loan seeker realizes that he’s not getting any cash. On the other hand, there are those who have other agenda; rather than stealing money, they are after precious information so they can sell it to third parties or use it on their own interest. There’s a chance that you’ll end up as a victim of identity theft if you’re not careful enough.
- Paying Unreasonable Price
Meanwhile, there are loan predators who do offer a financial assistance; however, it comes with a very expensive interest rate and other charges. It is too unreasonable even if you’re suffering from a bad credit rating. As a result, most debtors are having a hard time repaying the loan, thus getting trapped in the vicious cycle of debt.
When borrowing money online, be sure to work with trusted lenders only. Take time to do a research or ask referrals from the people you trust and know. Loan applications over the Internet are one of the easiest ways to acquire confidential details such as your Social Security Number, birth date, etc. which can be used maliciously. Nevertheless, there are safe loans you can rely on when you need money to settle unexpected bills or just to tide you over the next month.
Choosing Safe Loans Direct Lenders
One way to prevent most, if not all loan-related concerns is to deal with the right loan provider. It takes time and effort to before you find a company worth working with. Before you submit an application online, shop and compare at least three lenders and find out as much as you can about them. Consider the positive and negative reviews and assess if they’re worth taking or not. Asking referral from the people you know helps as well.
Also, you can check the lender’s legitimacy with the responsible departments, such as the Financial Conduct Authority (FCA), to ensure that you can get nothing but safe loans. Meanwhile, try to avoid these scenarios:
- Receiving Unsolicited Phone Calls
You can never trace who’s on the line of the phone call is coming from blocked or unknown numbers. It’s also not easy to tell if the “lender” is from the same state or country you’re living in so to avoid getting scammed, do not entertain such calls.
- Opening Random Email
Just like unsolicited phone calls, getting an email from an unknown sender already rings suspicion. You don’t even know how they have acquired your email in the first place so the best thing to do is just ignore it.
Safe Loans For Bad Credit
Even bad credit borrowers are entitled to receive safe loans, therefore, no matter how desperate you are, do not rely on the first or only lender that will accommodate your request online. Avoid these red flags as well:
- Upfront Fees
Unless it involves a large amount, do not deal with a lender who asks for upfront fees just so the loan application can push through.
- Guaranteed Approval
It’s easy to fall for a lender who claims “100% guaranteed approval” but if you think about it, safe loans providers will always put themselves away from risks. Anyone who’s promising such approvals is likely scammers who will do everything to trap desperate borrowers.
- Request For Funds
Perhaps, you’re running out of cash or you need money that’s why you’re getting a loan, so it’s kind of frustrating and suspicious if you need to send money before you acquire financial assistance from lenders. One red flag is when someone asks for a money transfer via Western Union or MoneyGram. However, there are cases when a legitimate lender asks for an upfront fee and just to be sure that you’re on the right track, they will ask you to send the payment through a credit card or a paycheck.
- Unprofessional Sales And Services
Grammar errors are usual, however, if the lender’s website is full of misspelled words, it’s a strong sign that you’re dealing with fraudsters. They won’t bother checking on their sentences anyway because they’re only after your money or private details. Security errors from your browser is also a warning sign.
How To Find Legit Safe Loans Online
- Every loan has a contract and one way to find out about its legitimacy is by taking it to a lawyer for a review. Such professional can detect any red flag from the agreement in case it isn’t true. Also, lenders who are rushing you to sign the loan are less likely to offer safe loans. Licensed lenders will ensure that you read and understood the loan contract before signing up.
- To know if the loan provider is registered, contact the financial registration agency for confirmation. After all, every lender is required to register their business before they operate.
- Don’t be fooled by false claims, promising that an upfront fee will guarantee an approval. Safe loans providers will disclose fees and charge it from the loan amount you will receive, instead of getting the money from you directly.
305.9% APR. £400 borrowed for 90 days.
Total amount repayable is £561.92 in 3 monthly instalments of £187.31.
Interest charged is £161.92, interest rate 161.9% (variable)
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