Payday loans are a great tool for many business owners and individuals. Unlike conventional bank loans, they provide relatively small amounts of money easily and quickly. You can submit a request for money online and get a loan to support your business without collecting a thousand of different documents.
Payday loan lenders are more interested in providing funds to you. However, the demand for a quick payday loan has resulted in the occurrence of numerous scam loan lenders, especially online ones. Is it possible to spot a scammer lender? The following tips will help you understand, which lenders you should avoid.
Identifying Scam Loan Lenders:
- A very short list of needed documents. Payday loan lenders usually do not ask for too many documents. But it is not a good sign when a lender does not ask for documents that can verify your credentials. Real companies will definitely check whether you are able to return the money before granting you some. If a lender is not interested in your history, he is probably more interested in your personal data. Be careful with such lenders.
- No registration. Registration and license are incredibly important. They verify whether a certain lender is reputable. Before applying for a loan, check whether it has a registration in your state and not some other. This is a requirement for absolutely all payday loan lenders. Even if it has registration but in some other state, do not apply.
- Offer is not complete but can expire. It even sounds strange. Fraudulent lenders want to get you as a client very much. They might hurry up to send you incomplete offers and get a deal with you. The law obliges lenders to provide full offer with final cost and dates. If your offer does not have this information, it is not legit. It is also important to read the offer carefully. A contract with numerous mistakes and misprints can be a scam too. Legitimate companies usually have a well-written drafts that are used on a regular basis. Moreover, there are no urgent offers. If you are told that it can expire, it is a pressure to make you accept it. This is a good scheme to make people act before realizing that something is wrong.
- No physical address. If you cannot find address or contact information, do not send your documents. Even if the website contains it, check maps to make sure that this is what really is located there. In fact, it might be even a good idea to visit the physical office and see how everything works there. Fraudulent lenders make it difficult to find them or get in touch with them.
- No advanced payments or gifts. Only scam payday loan lender will ask for advanced payment to prepare documents. Be careful if your lender allows you paying with gifts or cards. This is another sign of coming across a fraudulent lender.
Identifying a scam company is not difficult.
It requires attention and some analysis.
Once you see that certain conditions are odd, stop the process.
Check whether the terms and conditions are legitimate.