Avoiding Online Loan Crooks

The Federal Trade Commission is determined to prevent Americans from being stung by online loan scams. They recently conducted an interesting experiment which involved them setting up a dummy website purporting to be a loan company called ‘Esteemed Lending Services’. Those who clicked on the website were redirected to a page which said ‘You could have been scammed’. It was an innovative way to drive home the point that thousands of people get scammed when looking for an online loan each year. Below are some ‘red flags’ that will hopefully set off your alarm bells when looking for a suitable lender.

Not Interested In Your Credit History

If you’ve ever applied for a bank loan, your credit history is considered to be one of the most important background checks made by any loan company. Those with a low credit score will almost certainly be rejected. Applying for a bad credit loan is one of the easiest ways to be scammed online. Once you have applied, your personal details will be sold to third parties and you may well be tracked by fake debt collectors. Thousands of people are scammed and pay money for debts they don’t actually owe. Lenders that claim they are uninterested in your credit history are to be avoided at all costs. It should be noted that payday lenders don’t worry about credit scores either but such loans come with incredibly high interest rates.

Unclear Fees

Every legitimate lender clearly displays their fees, terms and conditions. They are legally obliged to be as forthcoming with their conditions as possible. All fees are calculated based on the amount you borrow with these fees paid to the lender after the loan is approved and paid. Never sign any contract you don’t understand and carefully read the small print.

Phone Loans

This is another sure-fire way to uncover a scam company. Fake companies will call you and promise loans. Nothing unusual about that you might say. However, these scammers will ask you to pay the fees before giving you loan. What kind of an organization asks you to pay money first in order to receive it? Besides, this practice is totally illegal in the United States.

Copycat Companies

They say that imitation is the sincerest form of flattery. Scam companies are taking this to the next level by trading with names that sound remarkably similar to respected companies, right down to the company logo. Fake companies will also have slick websites that are high on presentation but low on information. Don’t fall for their style; seek cold hard evidence that they are legitimate. If they are ripping off a well known brand name, you can be sure they are fake.

Not Registered

All lenders must be registered in the state where they do business. Although checking a company’s registration will not guarantee a loan you’ll be happy with, it should help you uncover most of the criminals.

In a nutshell, online loan companies that look for fee payment up front are not legitimate. Don’t give your bank account information to lenders and avoid giving any kind of personal information on the phone. Online cash loans may help you through a financial crisis but there are a lot of crooks out there waiting for you to make a mistake.

How to Find the Right Online Loan

The Internet provides a lot of services for hundreds of millions of people around the world. It’s well-known that people can find almost anything on the Internet. If you are looking for a loan, you can consider taking an online loan. It’s easy, convenient, and fast. For most online loans, the repayment period is short and the interest rates are very favorable. The main problem is that you will discover that there are so many online lenders that it can be difficult to select the best online loan. Here’s a simple guide to help you find the right online loan.

Nowadays, everybody tries to do things as fast as possible. The Internet feeds into this mindset where you can get the things you want in the fastest possible time. One of the greatest appeals of an online loan is that it’s fast. Some online lenders even promise that you will be able to get your money in less than an hour. It takes just a few minutes to fill out the application form and it takes a very short time to get an approval. For people who need fast cash desperately, all these terms are highly inviting so they rush to apply for their online loans without much thought, thinking that they will be getting the best online loan. No matter how urgently you need the money, it’s not wise to just plunge into anything, especially when it comes to loan applications. Many people get burned by scamming companies that seek to make a quick profit. If you fall prey to their schemes, you will not be getting your loan but you may also stand to lose some money to the scammers.

How do you find out if an online lender is legitimate? Since you will not be meeting the lender face-to-face, you are actually taking a big risk. To find out if the online lender is legitimate and reputable, you have to do some research. Assuming that you have shortlisted a number of online lenders, the next step is to do some research on the companies. Of course, you should always look for reliable financial institutions like banks or credit unions. If you are unsure, you can perform a search on the company to see if it’s involved in any scams. If you cannot find any information on the company, you can strike it off right away. Another thing to do is to check the legitimacy and track record of the lender with the American Bankers Association and the Better Business Bureau.

After researching on the online lenders, it’s time to compare the interest rates, payment terms, how soon the loan is made available, and other criteria. While it’s true that you will get very good interest rates by getting an online loan, it’s also true that every online lender will publish a different interest rate. Also, you have to check on the repayment period, penalties for late payment, and you may be surprised to find out that some lenders even charge a penalty for early repayment. Make sure that you understand all the terms and conditions before you commit to the online loan. Then, it’s just a matter of choosing the company that offers the best overall terms for your purpose.

Online Loans – The Easiest Way of Getting the Money You Need

Online Loans – Essential Information

Basically, these loans can be divided in two categories: the short term loan and the instant personal loan. The main difference between them is represented by the length of the repayment period. While the loans in the first category are granted for periods from 1 week to 14 days, those in the second category are granted for periods varying from 2 weeks to 30 days.

Another significant difference between the two is the amount of money that can be borrowed. Usually, you can receive more money if you apply for an instant loan than if you apply for a short term one.

When you apply for a bank loan, you usually have to bring in something valuable as collateral, such as a car or even a house, in order to secure the credit. However, you do not have to present any guarantees when you apply for online loans. Your next paycheck is the only collateral you offer to your lender.

How to Get Instant Cash?

The application procedure is very simple and, above all, it takes a short time to complete. This is mainly because the paperwork is reduced to minimum and the information required is only basic.

In order to become eligible, you must be at least 18 years of age and a citizen or permanent resident of the US. Also, you have to demonstrate that you have a permanent source of income, consistent enough to enable you to repay the loan.

Some online loans providers ask you to submit a proof of employment, showing the period since you have been working at your current job, but most of them only ask for a phone number and specific information about the employer and confirm your employment status by phone.

Given the shallow and fast procedure of granting easy payday loans, the lenders are exposed to considerable risks. Their need to verify your employment status is, therefore, understandable, and so is their tendency to apply higher interest rates.

A wide spread misconception about online credits is that they are instantly granted, the pre-approval stage being completely eliminated. This step exists, the only difference between bank-granted credits and those you obtain online being the duration of the procedure. In the latter case, everything lasts a lot less, because it does not involve extensive verifications or faxing.

What to Consider When Searching for Online Loans?

When it comes to getting quick payday loans, throwing at the first offer you see is not the wisest thing to do. You must carefully analyze the repayment conditions and the costs of the credit. Only by making an extensive comparison you can choose the loan that suits your needs and repayment possibilities.

The fee charged by the lender for the provided services or the interest rate is very important, because it adds to the sum you have to pay back. Usually, its quantum is of about 25%-30% from the borrowed amount, but, if you search carefully, you should be able to find online loans at lower prices.

Indeed, payday loans and all short term credits have sensibly higher interest rates than the classic, bank-granted personal loans. This is partly justified by the higher risks these loans pose for the lender due to the fact that fewer verifications are made and the eligibility requirements are much easier to meet and more flexible.

From this point of view, you must carefully calculate your household budget before you apply for one of the many existing varieties of online loans. Asking for more money than you actually need is a way for you to fall into a debt trap, especially if you fail to repay the whole amount you owe within the stipulated period.

However, a short term credit, no matter its specifics, is a financial instrument designed to help you when an emergency situation appears and you have no one and nowhere to turn to. The easy to meet, minimal requirements and the rapidity with which the needed money is granted are the main characteristics that recommend quick payday loans as the right solutions for urgent financial difficulties.

Just like in many other aspects of our everyday life, the Internet simplifies things a lot, allowing you to choose the most suitable lender and to fully enjoy the advantages presented by online loans.