There are so many reasons you might find yourself in need of a personal loan. Life is unpredictable, and unexpected expenses crop up all the time. Whether you were in a car accident and need to pay for repairs, or have fallen ill and can’t afford the hospital bills, access to fast cash can make all the difference between staying afloat, or spiralling into bad debt.
Online lenders have risen in popularity in the past few years, but not all of them are honest. Before you get sucked into a scam, check out these 7 warning signs to look out for with online lenders.
7 Warning Signs To Look out For With Online Lenders
Banks and traditional lenders make the borrowing process difficult. With so many forms to fill out, criteria to meet, and loans that are tailored to your needs, it’s no wonder so many people are making the switch to private lenders. There are so many pros to this option. Private lenders are much more flexible in their lending criteria and are able to take your individual circumstances into consideration when offering you a loan.
But, that can come with risks if you don’t know what you’re looking for. Like any other area of life, there are people hoping to take advantage of you. Here are 7 warning signs to look out for with online lenders:
1. They don’t ask for you credit history
If you’re in a position of bad credit, then this can seem like a positive thing. But the fact is, every lender is going to want to know where you stand financially. They may then go on to offer you a bad credit loan afterwards, but they will also check on your financial position first. If the lender you’ve approached has skipped this step, take it as a red signal.
2. They ask for money
The idea of a loan is to send you money, not the other way around. If they’re asking for money upfront, something is going on. An accredited lender will never ask you to provide a card for insurance or fees. They’re looking to gain access to your account, which they will be able to do once you hand over all your personal details. Steer clear!
3. Spelling mistakes
This is another of those pesky warning signs to look out for with online lenders. In fact, this is a sign of any online scam. If you get an email from a company asking for money, always check the email address it’s coming from. If there are any spelling mistakes in it, it’s a good sign it’s not legitimate. The same thing goes for lenders. But it goes beyond just the email address, look for spelling mistakes in all your communication. Many scams happen from outside Australia and their English isn’t great.
4. Not accredited
It always helps to check if the lender is accredited as an approved lender by ASIC. This is an easy way to spot whether or not a business is legitimate.
5. Rushing the process
When it comes to taking out a loan, we all want the money fast. But if the lender seems to be pushing things along faster than you would like, then put the brakes on and take a step back. This can be a sign they want to get you over the edge as soon as possible as part of a scam. Don’t fall for it. Make sure you go through all the documents carefully and don’t be rushed into signing anything.
6. Wiring money
If the lender asks you to repay part of your loan by wiring them money then it’s time to run. This is one of those big warning signs to look out for with online lenders. It’s difficult to trace funds once they have been wired, so they will be gone for good.
Even if a lender is accredited, it helps to do your research. Often a scam company can attach themselves to an accredited business without their knowledge. Give the company a call just to be sure.
Warning Signs To Look out For With Online Lenders
Now that you’re clear on the warning signs to look out for with online lenders, how do you go about taking out a loan. Don’t be scared off. There are many reputable online private lenders ready to help you out and give you access to the money you need. Use the warning signs above to ensure you’re on the right track, and know that not all lenders are out to scam you.
Taking Out A Loan
One of those reputable online lenders is Bad Credit Loans. Their friendly and understanding team is on hand to help people with poor credit obtain the loans they need for a competitive rate. If you’re ready to take out a loan but are worried about scams, then head straight over to Bad Credit Loans. Give them a call today to get started.