Tips to know if the lender is scammer

By | May 29, 2019

Signature loan is a great advancement in this modern age. It has become quite easy and accessible for consumer to approach online lender than traditional banks or credit unions. You just apply online, get approved and receive cash within no time.You should visit to get every kind of information you need before applying for loan.

But it is not that easy, as it looks like. You are not familiar with all online money lenders. Before applying for online loan, you should look for the reviews about the lender company online. You have every right to be doubtful because you are going to share your personal information with him. You should check for complaints with Better Business Bureau for any scams. It is quite hard to tell that the online lender is a fraud or legit. But here are some warning signs to differentiate between scam and legit offers.

Check the license

All lenders are required to get license and get registered to work in a state. If they are not licensed in other states then he is a fraudulent website, and you should not respond to his inquiries.

Incomplete loan offer

The online lenders are required to provide complete details of their offers, all the terms and conditions including the final cost of principal and interest. This all information is important for a consumer to know prior to sign. Check thoroughly and if the offer lack details, any errors or something alarming raises an eye, it’s a scam.

Physical address

If the online lender does not provide his physical address and contact information, do not proceed with the application. Without any contact information it will hard to get in touch in case of any problem. You will not be able to take a legal action against them.

Advance payment

If the lender demand advance cash, origination or processing fee before lending, means a scam. The fraudulent want to earn quick money. Legit companies show fee upfront and deduct it from the amount of loan you receive. They will try to fool you that upfront money will guarantee to get you more loans money.

Get professional review

You can take the loan agreement to a lawyer for review.  Lawyer is legal professional and will detect a scam if you miss. Do not attract with urgent offers and avoid being rushed into signing a contract. The legit lenders offer steady rates based on your credit and do not want to act quickly. Pressure tactics means scam.

No credit check required

When you apply for loan, lenders need to check your score before fixing the interest rate and other terms. If the lender is not interested in your credit history, it means there is something wrong. A lender does not care if you are able enough to repay your loan money, then he is after your personal information. Your creditworthiness is not his concern and he is a scammer.

Gift card as payment

The legit lenders do not demand gift card as payment. Gift card is same as money and once you give it will not come back. So, if a lender is pressuring you to do this, it is wrong and avoid him. There is no such thing as guaranteed approval fee.

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