The internet opens access to boundless opportunities, but at the same time, it can leave you open to significant risks. It’s an unfortunate reality that the web isn’t the safest place for sharing financial information. While it’s easy to find tempting offers for loans at competitive rates, it’s just as easy for those offers to turn out to be shameless scams. If you’re looking to turn your finances around with no interest money loans online, you’ll need to know how to separate legitimate loans from shady scams. Here are four ways to determine whether you’re dealing with a fraudulent provider:
1. Don’t Fall for “Guaranteed Approval”
Getting approved for a loan is no pleasant process, but all those challenges exist for a reason. Legitimate providers have to turn a profit, and they’re not going to give you a loan if they don’t think you’ll be able to pay it off. This means that if you encounter a self-proclaimed provider who advertises that all applicants will receive “guaranteed approval,” you should look elsewhere.
Guaranteed approval is nothing short of a scam meant to swindle hopeful loan applicants by promising convenience. In fact, it’s actually one of the most common loan scams you can encounter online. Getting approved isn’t fun, but the extra effort is worth it for the sake of your peace of mind.
2. Know What’s in a Name
It’s always a good idea to support small, unknown businesses in your local neighborhood. However, the same can’t be said for the world of online lending. If you see an enticing loan online, but you don’t recognize the provider’s name, you should proceed with caution.
It’s easy to set up a scam under a seemingly-legitimate business name, so even if the provider claims to be associated with a major bank, you should verify that you’re dealing with a trustworthy source. You should especially beware of loan providers that adopt familiar names like Wells Fargo but change a few letters – “Bells Cargo” probably isn’t going to give you a trustworthy loan.
3. Customer Service Matters
Receiving a loan is a big deal, personally and financially, so you can’t afford to put up with subpar customer service. Most loans entail thousands upon thousands of dollars, so when you’re applying for one, you should make sure that your provider will handle your investment with care and answer your questions satisfactorily.
Most large banks and lending candidates understand this and put significant care and attention into their customer service division. However, the same can’t be said for online scammers. It doesn’t matter if a potential provider has the best rates you’ve ever seen – if they take days to answer basic questions or refuse to offer friendly customer service, you should look elsewhere.
4. Beware of Hidden Fees
Loans are complex matters, and you have a right to understand them as best you can. Legitimate loan providers are upfront about the terms of their loans from the very beginning. If you’re midway through your application and your lending candidates are suddenly demanding advance payments with no warning, you should get out of that situation. Whenever you’re considering a lending candidate, make sure that they’re completely transparent about their fees and processes.
There are endless too-good-to-be-true lending deals online. However, the unfortunate truth is that the web is filled with scammers looking to take advantage of people during their most financially vulnerable times. Make sure that you’re aware of these four tips so you’ll stay safe from shady loans and secure yourself a strong economic future.