5 Tips to Avoid a Loan Scam

There could be any number of reasons that an individual would need to get a loan. There is no shame in them! Everyone needs a little help here and there to pay for things like university or a down payment for a new home. Even if you’re between jobs, it could be something you need to tide you over until the new job starts.

And most importantly, if you are an entrepreneur, you definitely need a personal or a business loan at some point in the life span of your business. It may seem harder to get a loan when you really need one, but the good news is there are plenty of well-established ways to get loans wherever you are, such as fast cash loans in NZ. These sites are specifically set up to help make the process simple and smooth.

The bad news is there are places that will do their best to appear legitimate but try to scam you. Fret not! There are some signs to look out for to make sure the deal you are getting is real. Keep reading to find out more.

1- Time Limits

Sometimes, there are time limits for a certain offer that a lender will pressure you into taking. This is most likely a scam.

Real lenders will work with you and offer steady rates. A high-pressure “act now” attitude could be a ploy to get you to act without thinking. If you don’t read the fine print or take a moment to check out what is likely to be too good of an offer to be true, you may end up in a high-risk situation or end up losing money.

The best thing to do if you see an offer like this is to just ignore it and scroll on by. There will be a real money lender out there willing to help you and work with you.

2- Approval Guaranteed

This should be a big red flag. There is no such thing as a guaranteed loan. This is a tactic a scammer will use to prevent you from shopping around.

It can be tough to find a place to give you a loan because there are so many checks in place to make sure you are eligible for a loan. However, if they just accept your loan request with little to no questions asked, there is a high chance it is a scam.

3- No Address Listed

This is an obvious one to look out for when you are looking for any service online, but especially if money is involved. If they have a fake address or no address at all, it’s safe to say that it is a scammer looking to make a quick buck.

Scammers will not put an address on their site, so they cannot be traced. Other times, you might search an address and find it comes up with a random warehouse or is entirely fake. In these scenarios, it’s time to back away. Be smart and double-check the information provided to you is real.

4- Upfront Payments

This is a good indicator that you are getting scammed. If the company you are using asks for an upfront fee to cover something like “processing”, this is a scam. Any loan company asking for money before it has processed your application is simply someone trying to make some money off you and never fulfill your request.

5- No Check

Most companies have multiple checks they need to do before they determine you can have the requested loan. One of the main things they usually ask for is your credit score. The higher your score, the more likely they are to approve your loan. A solid credit score gives lenders confidence that you will pay them back.

A company that doesn’t ask for this is more than likely trying to scam you. If they don’t know they can trust you to give them the money back, don’t trust them to give you the money in the first place. They are only after your personal information at that point so avoid companies who aren’t vigilant in their checks.

Conclusion

There are many loan companies very willing to help you, but it never hurts to be too careful. Always make sure you know what you are getting into and stay safe.

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