When we are in moments of abject financial crisis, personal loans seem the best option. However, all is not safe in the world of online loans. You need to be very careful otherwise, you might fall pretty to the various scams that personal loans can become victims too. There are predominantly two types of scams of personal loans:
- Advance Fee loans
- Loan Phishing Scams
Here are the signs that you should look out for if you want to alert yourself for the scams that happen surrounding online loans:
- There might be many purposes for the lenders to offer credit cards or even loans, for instance, if you want to start a business or even want to consolidate your bills. If the ads of the lenders say that they do not care about your past credit records, then that is indicative of a scam.
- If a lender asks you to pay an upfront application fee to merely apply for online loans, then it is not right. The leaders who are legitimate will never ask you to pay any amount before you have received the loan. Asking for a fee is against the federal law. The lenders can even lose their registration or license if they ask for pre-payment.
- The advance fee loan schemers will have a tendency of asking for your personal information like credit card number or even the information of bank account, even before you get hold of any paperwork.
- The loan broker will hesitate to provide any information regarding the physical location of their company. If you have their physical address, that will allow you to find out more information about the company.
If you come across the signs that we have mentioned before, then you should definitely not involve yourself such a broker for online loans.