Biggest Warning Signs of a Personal Loan Scam

It is important that you are able to identify some of the warning signs of a personal loan scam so you don’t become a victim yourself. Each year many people are taken advantage of by dishonest so-called lenders, so you will need to get this information before filling out any applications. If you are in need of a personal loan for any reason, you will find that this information can help you avoid a horrible situation. Becoming a victim of a loan scam could cost you a lot, which is why you will want to educate yourself.

Ignoring Your Payment History

Any legitimate lender will always notify you of their intent to pull a copy of your credit report when you apply for a personal loan. You should think twice about trusting any lender that completely ignores your payment history, because it probably means they aren’t to be trusted. Each lender has different standards for applicants’ credit, but almost all of them at least run a basic credit check. It is possible to get a loan with bad credit, but you’ll need to watch out for lenders that don’t care about your credit history at all.

The Lender Doesn’t Have the Proper Credentials

You will always want to make sure that the lenders you apply with for a personal loan have the necessary licensure or certifications so that you don’t unwittingly fall into a scam. It is crucial that you take the time to look into the credentials of each lender so that you can choose one that is completely legitimate. Make sure the lender you borrow from is licensed before you sign a contract with them, because otherwise you’ll likely end up regretting it at some point.

They Require Payment for Fees Upfront

No reputable lender will ever require you to use a prepaid debit card to get the loan you need. A lot of the “lenders” that run these scams require applicants to pay an upfront fee with a prepaid debit card, and it’s a clear sign that something is not right. You will never need to pay any fees upfront, so keep that in mind when you are looking for the right lender. There are numerous fees associated with most loans, but they are paid over time and starting once you get approved and not before.

Lender’s Site isn’t Secure

Always look for “https” before the URL of the lender’s website so you know that it is completely secure. If you do not see this, you will not want to use the website at all. A vast majority of lenders have secure websites, but this is still something that you will need to be aware of. A lot of people have had their identities stolen because they used websites that were not completely secure.

The Lender Doesn’t have a Physical Address

Even most lenders that are based online have a physical address of some kind that you can look up. If a certain lender doesn’t seem to have any physical address, you should seriously think twice about getting a loan from them. Any lender that doesn’t have an address is most likely not legitimate. It is standard for pretty much all reputable businesses to have a physical address on record, even if they offer their services entirely online. Take the time to find out if each lender you look into has an address before you choose one in particular.

You Are Asked to Submit Collateral

Unless you are taking out a secured loan, you should never expect any lender to ask you to put down collateral. This is a common sign that someone is trying to scam you, and it’s something that quite a few people fall for even today. You should never turn over any property to a lender that doesn’t seem legitimate for a non-secured loan. The “lender” is most likely looking to take your property from you permanently without giving you a loan at all.

Spam Emails

You should never apply with a lender who randomly sends you spam emails, because they are most likely not legitimate. There are a lot of email loan scams, so you will need to make sure that you do not fall victim to any of them. It’s important that you never click any links or open attachments in emails from anyone you don’t know, because it could result in your information being stolen. This is a fairly common scam that a lot of people are still running, so you’ll need to be aware of it.

Lots of Grammar and Spelling Errors

One sure sign that a lender isn’t legitimate is if the correspondence they send you is riddled with spelling and grammar errors. Make sure that you keep an eye out for this so that you can tell when a lender isn’t for real right away. If a certain lender doesn’t seem very professional, it’s probably because they aren’t. A lot of the people who run these scams do not speak English as a first language, hence all of the grammatical errors.

Finding Legitimate Lenders

There are a number of things that you can do to find a legitimate lender to borrow from. The internet will be able to help in your search for a reputable lender, so you’ll need to use it to your advantage as much as possible. One of the best ways to find a good lender is to read reviews that people have written for some of them online.

Those who take an adequate amount of time to find the right lender will be very happy they did. Look for lenders that are well-established and have a positive overall reputation online so you know you can trust them. Don’t be afraid to send an email to some of the lenders you come across so you can get to know them a bit better. You should also browse through these lenders’ websites, as they will be able to tell you a decent amount about each one.

Common Myths About Guarantor Loans You Need to Know

There are quite a few myths surrounding guarantor loans that you will want to know about before you apply for one. These loans can be incredibly helpful for those who have bad credit, but you certainly don’t want to rush into anything. The more time you take to look into these loans, the easier it will be to get the money you need without any regrets later on. Learning the facts about guarantor loans is crucial before you fill out an application for one.

You Need to Put Down Collateral

A lot of people still believe that guarantor loans require the borrower to put down collateral, but the truth is that you do not. You won’t have to risk losing any of your property to get the money you need like you would with a secured loan. One of the reasons why so many people in the UK apply for these loans each year is because they are so low-risk. If you want to get a loan with bad credit but don’t want to risk losing your home or car, you’ll be happy to know that collateral is not needed.
Documents Are Needed to Get Approved

You will not have to submit any documents to the lender when applying for a guarantor loan. This makes getting this type of loan so much easier and less stressful. The person who will be acting as the guarantor will most likely need to submit documents proving their income, but you will need. This also makes the process of getting the loan you need go a lot faster, which is a great thing if you need money quick.

Guarantor Lenders are not Trustworthy

There are plenty of legitimate and trustworthy lenders who give out guarantor loans, so you should have no problem finding one that you can depend on. It is important that you take the time to review your options before choosing a certain lender though. Those who take enough time to do this research will get the money they need without having to be concerned about getting scammed or ripped off in any way. Take some time to look up reviews for these lenders so that you will be able to find one that is flexible and will work with you as much as possible.

There are Always Hidden Charges/Fees

While it may be true that some unscrupulous lenders charge hidden fees, this is certainly not the case for all of them. As long as you make a point to find a trustworthy lender, you will not have to deal with this issue. The fact is that a vast majority of these lenders do not charge additional fees, so you will have nothing to worry about. It is always a good idea to look over the loan contract carefully before singing though. You will need to know exactly what the terms and conditions of the loan are, including all of the fees you’ll be required to pay.

Borrowers’ Information isn’t Secure

It is a complete lie that your information won’t be secure if you apply for a guarantor loan. All legitimate lenders take the necessary measures to completely protect their borrower’s information from being stolen. When you are looking for a place online to apply for one of these loans, just make sure there is a “https” before the website’s URL. This way you will know that any and all information you submit through the site will be kept completely secure.

There are Additional Charges for Speedy Approval

One common myth about guarantor loans is that you need to pay an additional fee to speed up the processing of your application. In reality, these applications are normally processed quite fast. This means that you will hear back from the lender within a day or so after submitting your application. The quick approvals that are associated with these loans are partially why so many people get them every year. If you are in a situation where you need money fast and cannot wait, this is an excellent option to consider.

Penalties for Bad Credit

Guarantor loans are ideal for those with bad credit, because getting approved is typically very easy. There are no penalty fees for those who apply with bad credit. You will not have to pay any more for one of these loans if you have a low credit rating. Most of these lenders are more than accommodating when it comes to helping people with spotty credit histories. The fact is that no reputable lender will ever penalize you for having bad credit, so you will need to remember that when doing your research.

You Absolutely Need a Bank Account to get Approved

There are some minimum requirements that you will have to satisfy to get approved for a guarantor loan, but having a bank account is actually not one of them. A lot of these loan companies offer services for those who need the money in cash because they do not have a bank account. This will make getting the loan you need a lot easier.

Your Credit Score Will Suffer

Those who apply for guarantor loans will not have to worry about their credit being negatively impacted at all. The only way that your credit is going to suffer from getting one of these loans is if you don’t pay it back on time. It is very important to make sure that you know when your loan must be paid back so you don’t have to deal with a strike against your credit.

Should You Get a Guarantor Loan?

There are numerous things to consider before getting a guarantor loan, including whether or not you will be able to find someone to act as your co-signer. You should also determine whether or not you are financially stable enough to pay back the loan on time. By considering these things you will reduce the possibility of problems later on down the road.

How to Find a Reputable Home Loan Lender You Can Trust

When you are looking for a home loan, it is important that you find a lender that you can trust through and through. Since there are so many lenders to choose from, you will need to make a point of doing the necessary research. The more information you get on these lenders, the easier of a time you will have with selecting one that will work with you. There are lots of different ways to narrow down your lender options, and it’s crucial that you know what they are before getting started.

Compare Deals

If you want to get the best possible deal on your home loan, you will certainly want to make a point of comparing deals from various lenders. The internet will be able to help you with doing this research. Those who do this usually end up getting a lower interest rate and therefore pay less for their loan overall. There are plenty of resources on the internet for you to utilize when doing this research, so you will want to use them to your advantage. Not all of the lenders you come across will give you a good interest rate, so you must get numerous quotes.

Ask Around with People You Know

Another highly effective way to go about finding a reputable home loan lender is to ask people you know for referrals. There is a very good chance that you already know someone who can give you this sort of recommendation. A personal referral will help you to zero in on a lender that you will be able to trust. Start asking friends and family members who have taken out a home loan so you can see whether or not they will be able to recommend the lender they used.

Should You Hire a Broker?

Some people hire brokers to help them find the best possible deal on a home loan, but this option isn’t right for everyone. There are a few things that you must consider before doing this, including how much time you have on your hands. If you are an extremely busy person, it might be a good idea to get someone else to help you with this. These professionals specialize in assisting people in finding a home loan that is right for them. Those who need some sort of special mortgage will certainly want to keep this option in mind.

Speak with Your Real Estate Agent

It is very likely that your real estate agent will be able to give you some helpful information when it comes to finding a lender you can trust for your home loan. Real estate agents often have certain connections and resources that can help you out a lot when it comes to getting a good deal on this type of loan. They could be able to point you in the right direction with finding a lender you can trust, so it is an option worth exploring.

Read Online Reviews

There are numerous places on the web where you can go to read reviews on mortgage lenders, and it’s definitely a good idea to spend some time doing this. These websites can provide you with some very valuable and useful information when you are trying to decide on one lender in particular. After you have read enough of these reviews, you should be able to make the right decision on a certain lender to borrow from. Most of these reviews are written by actual people who have borrowed from various lenders, so you will want to give them their due attention.

Ask About Experience

You should make a point of finding out how long each lender has been around, because this is quite an important factor to keep in mind. The more experience your lender has, the better your chances will be of getting exactly what you need. Take the time to visit each lender’s website, as it will probably provide you with some additional information that you can use to make a good final decision. There is typically an “About Us” section on these websites that you will want to take a look at.

Meet with the Lender in Person

You will be able to get a better sense as to just how professional and legitimate each lender is by arranging an in-person meeting with them. This meeting will provide you with the perfect opportunity to ask any questions you might have. You should be able to tell just from the lender’s overall demeanour how professional they really are. Take a close look at their office to see what kind of state it is in, as this is another good indication of professionalism.

Get The Lender’s Credentials

Every legitimate lender has certain licensure and other credentials that you will need to look for before deciding on a certain one. The last thing you want is to choose someone who is not completely legitimate, because you could end up getting ripped off in a big way. Each year many people fall victim to home loan scams, so you will have to find out if the lender has all the necessary credentials before going forward. You should also look out for other signs that a “lender” might be trying to scam you, such as asking for payment for fees upfront.

Why is the Lender You Choose So Important?

The lender that you select to borrow money for your new home is important for a number of reasons. The right lender will be flexible and willing to work with you to come up with a term length and repayment plan that is far and works for both parties. As long as you take enough time to do this research, you shouldn’t have to worry about being scammed or ripped off in any way. Getting a home loan can be quite stressful because of everything that is involved, but these simple tips can help you navigate this process with your sanity intact.