If you have decided that a personal loan is what you really need for your situation, it is very important that you learn about before taking one. Remember that personal loan applications are also situations where scammers and fraudsters thrive. They take advantage of people whom they can earn in ways that are not good.
When getting a personal loan, you should also be aware of how things are done by scammers so that you are aware if the person or entity you are dealing with is taking advantage of your situation. Here are a few things that can help you understand and avoid falling into their tricks.
- When personal loan lenders ask for advance fees and upfront payments.
This is one sign that a scam is brewing. Personal loan lenders would never ask for upfront fees to be paid. One reason you are borrowing money is because you need it. So it actually doesn’t make sense that a lender would ask you to pay first before the let you borrow. When you encounter lenders who ask for money upfront, it would be best to step back and look for another lender who can help you with your loan.
- Transacting with lenders online and would claim that they do not have a physical address.
Licensed lenders, regardless of online processing of loans, are required to have a physical address. If a physical address cannot be provided, then it can be sure that this is a scam. Physical address help a borrower easily approach a lender. Online transactions alone would not be sufficient to be granted any license to operate as a lender.
- Credit Score and history is not relevant for granting a loan.
If your lender is guaranteeing approval for your loan without the need of a credit check is not legitimate. Legitimate and licensed lenders will always make sure that the risk involved in granting loans is remote which can be done by proper credit investigation. If your lender neglects to put emphasis on this part and claims that it is not required, walking away that instant is the best option you can take.