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How to Detect & Avoid Personal Loan Scams

A personal loan can be very helpful in sorting out short term financial issues such as automobile repairs, your moving day, home repairs and decoration, vacation, wedding, and buying a gift for your loved one. They are especially helpful in a medical emergency. Yet, scammers and fraudsters take advantage of innocent borrowers’ every day. Do you know how to detect and avoid personal loan scams?

Fraudsters target careless borrowers who don’t take time to consider the consequences of their actions. The con artists cheat gullible borrowers of their hard-earned cash. They may also sell your personal details while pretending to be offering a loan. Nation21 is reliable and leading matching service with operations throughout the United States. We assist you to avoid scammers by connecting you with top-rated lenders.

Do you know how to detect and avoid personal loan scams?

There are a number of indicators that you can use to detect and avoid a scam.

No credit needed lenders

Be extremely wary of any lender who doesn’t conduct any credit check whatsoever. This because some kind of credit checks are needed to determine your creditworthiness. Lenders use your credit score to evaluate your ability to repay the debt and avoid default. So the provider needs to find out if you settle your debts in full and on time.

A lender who doesn’t care about your ability to meet your payments is untrustworthy. So, where a lender guarantees that the loan will be approved, or states your credit record is not needed, be wary. Authentic providers don’t guarantee the approval of the loan no matter what.

The lender needs to evaluate your credit score and credit record to determine your ability to cover your payments. Also, your credit score will impact the rate of interest your loan will attract. Lastly, the lender needs to make sure the details you provided are correct. You require being an adult with a bank account and a stable source of income.

Unlicensed lenders

Genuine lenders are registered as required by the law. Find out from the website the states in which the provider is authorized to operate. The US regulator, Federal Trade Commission, requires all providers and brokers to be authorized in the states in which they operate.

If you reside in a state which isn’t listed on the provider’s site then it is advisable to check the FTC website, the banking regulator or the state attorney general’s office. This will help you avoid unscrupulous dealers.

Advance Charges

You need not pay to receive a personal loan. In fact, any payment made prior to your receiving the loan is illegal.  Some authentic lenders require you to pay for the credit report, application or appraisal. These charges are subtracted from the debt.

Beware if you are asked to give collateral or pay fees in advance. If you are asked to give a prepaid debit card flee as fast as you can. Also, fraudsters will tell you that they charge advance processing fees or collateral for your poor credit score. Remember that any prepayment is a violation of the Federal law.

Unsecured lender’s website

If the lender’s website address doesn’t have the –https – beat it. This is not a secured website. A reliable and trustworthy lender will certainly make sure their website is secured. Also, ensure that any website pages in which you are required to fill in your personal details display the padlock icon.

Some fraudsters use software that enables them to record your details as you type them in the online form. So the system will capture and store it straightaway. This means they will harvest your personal details even if you don’t submit the form. Your details are then sold or used for unscrupulous deals.

What’s more, heed any alerts that inform you that the website is not safe. Scammers don’t pay to keep their website safe.

Lenders without a physical address

Does the provider have a physical location? Find out from the provider’s website if they have a physical location. Search for the address to make sure that the location is not a fake. Make sure that the address is genuine and there is a business there.

Also, find out the legitimacy of the provider by dialing directory assistance and requesting the provider’s number. This is one of the best ways how to detect and avoid personal loan scams.

Personal Details

Some website promise different kinds of short term loans. However, these are middlemen whose objective is to harvest personal details. The Federal Trade Commission says that a direct provider will lend you the cash. On the other hand, middlemen want to collect your confidential information.

The middlemen will paddle the details to providers. They sell borrower’s details like name, phone number, date of birth, address, credit card details, social security number, bank accounts, etc.

Act now loans

Fraudsters and scammers inject a sense of urgency into the process. They pressurize you to take immediate steps to enter your details in the form or send advance charges and fees. In fact, some con artist will ask you to submit payment prior to your receiving any documentation. Always make sure you receive the needed documents before taking any steps to request for a line of credit or loan.

Some lenders may require that you send money to cover loan charges and other fees to an individual. This could be through wire transfer or directly, in either case, flee!   These are fraudsters’ favorite methods to steal desperate borrowers’ cash.

It is essential to know how to detect and avoid personal loan scams. The will ensure that your confidential details don’t find their way into the wrong hands. Also, it saves you the stress of being cheated, and your time and money. Borrowers from all over the United States come to Nation21 for assistance in getting reliable and trustworthy providers. We will quickly link you up with top-rated providers who match your profile.