9 Jul, 2019

Cash Loans and the Prevailing Trend of Scams

With modern world come modern threats. When you talk about borrowing money these days, the first thing that you need to check out is whether you’re taking out a loan from an authentic source or are you being scammed. Yes, the rate of getting scammed these days when it comes to taking out loans has already reached great heights. These scams and frauds are very much common in cash loans because these loans are online loans and get be taken out just by filling out an online form. In this […]

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With modern world come modern threats. When you talk about borrowing money these days, the first thing that you need to check out is whether you’re taking out a loan from an authentic source or are you being scammed. Yes, the rate of getting scammed these days when it comes to taking out loans has already reached great heights. These scams and frauds are very much common in cash loans because these loans are online loans and get be taken out just by filling out an online form. In this article, we’ll discuss some signs that can keep you at bay from all kinds of frauds and scams that are happening these days in the online money lending business. But before getting on to that, read this great guide to get a better understanding of cash loans.

Your Lender Doesn’t Perform Credit Check

When you talk about borrowing money, you need to understand the fact that every lender will want his or her money back within the stipulated time period. For that, all the lenders, including online ones, must assess your financial condition to be sure that you will be able to pay the money back or not. This just builds the level of trust that is necessary for this sort of transaction. Thus, a lender will have to go through your credit history to see you if you have ever taken out loans before and if you were able them back or not. This is the standard procedure. However, if your lender says there’s no need to do that before approving your loan, then you must know there’s something fishy.

Charging Upfront Fees

One of the most common signs of loan scams that should ring bells in your mind is when your lender asks for a fee to process your loan application. Such lenders will generally ask you to transfer money through your bank account. Come to think of it, there’s no need for lenders to charge you a fee in order to process your loan request because you will be paying interest on your loan. Moreover, if the lender doesn’t even want to perform a credit check because they’re so certain you’ll pay the money back, then why are they charging an upfront fee for processing your loan request? It doesn’t make any sense.

Unregistered Lenders

Local authorities take actions against lenders who lure borrowers into money traps. These fraudulent companies are everywhere and their activities are punishable by law. This is why all the lending companies must be registered. Every borrower must be aware of these simple and basic facts in order to avoid these scams. It is also important that when you are applying for cash loans, you must check if the lending company is registered or not. If you decide to make a deal with a lender that is not registered then it is very easy for them to fool you into a scam. Take a moment and think about it. If the local authorities don’t trust that lender, why should you?

Contact Details

It’s very easy to do fraud on online platforms. This is why you must be very careful as to who you’re dealing with in the first place. Check for lender’s address and contact details to make sure the lender has a physical presence somewhere or not. If a lender does have a physical address and contact details listed on its website, then these things make them credible. However, if there’s nothing listed on their website, then you must get suspicious. Another sign of scam or fraud is many spelling mistakes, poor grammar, and lame sentences in the contract they offer you. These things make you doubt the legitimacy of the company you’re dealing with.

All online lenders out there are not robbers. However, there are a couple of things that you must check on your end to make sure that you’re dealing with an authentic party. Follow these signs to distinguish between a legit and fraudulent lender and put your trust in only those lenders who look honest to the best of your knowledge.

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