Friday, December 27, 2013

Personal Loan Shams

Everyone has been in that situation where they need some extra funds in order to do repairs or renovations, pay for a wedding, pay for extra car expenses, or for anything else that doesn't turn out to be pocket cash. There are plenty of companies that are there to help by offering a you a personal loan; some will even work with you if you have bad credit. However, there are many so called companies that are only out there to scam you. Many people find that they can take advantage of people who are in need and are vulnerable. Don't become a victim of a personal loan scam; learn the signs of a scam and how to avoid them.

You should be wary of any unsolicited letters or emails. Some scammers may send out messages saying that you have been pre-approved for a loan and you need to send them your information to get your loan. These people have probably gotten your contact info somewhere along the line when you have applied for a credit card or a different kind of loan. If you get an email that says you are pre-approved or are guaranteed a loan, it is probably a scam. For emails that you aren't sure about, you can check with the Better Business Bureau (BBB) to find out if they are a legitimate company.

You know you are being scammed if they ask for money upfront or as a down payment to hold you loan. Same goes for if they ask for collateral, it's bound to be a scam. When you apply for an unsecured personal loan, the amount you get is based on your risk. If it seems like you will be more of a risk as far as paying them back, they will offer less money, or give you a higher interest rate. Majority of lenders do not require an upfront payment or collateral in order for you to get the loan that you want. Also, any lenders that approve you over the phone are probably scamming you, it is illegal in the United states for companies to approve loans over the phone. If a lender who you believe is trustworthy asks for a deposit or something, be sure to ask why. Also, ask a lawyer who you trust to take a look at any contracts or requests, especially any which seems fishy.

Check to make sure any links, including those in emails, or websites have been approved by Norton, the BBB, or Truste. If you happen to get an email saying you have been approved and to follow the link below, don't click on that link. Most of the time, that link will lead to a fake page where it will require you to input your personal information. Do not fill out these forms; do not click on these links. Some of these links aren't just a personal loan scam, but could contain a virus that will retrieve any personal information and passwords. Perhaps you get an email from your current lender saying there is a problem with your account or that you haven't paid. Lenders will not send you an email about this type of information; they will try to contact you over the phone or through the mail. If you are not sure, and the email seems legitimate, call the business or company that "sent" the email to double check.

When applying for a personal loan, be aware of these tactics that scammers use to get your personal information. Be wary of email solicitations, lenders who say you are guaranteed a loan, lenders who require pre-payment or a deposit, and any lenders who say they can approve you over the phone. There are many legitimate companies out there that do offer personal loans even to people with bad credit. Do your research to see what other people are saying about a particular company and see if they have been approved by the BBB. Before signing any contracts, talk to a trusted advisor or lawyer to be sure everything looks as it should.

Tips for Personal Loan Borrowers

Are you ready to take out a personal loan? Are you considering a payday loan to get out of a financial jam? If so, you need some fast tips to help you choose the right lender, the right loan amount, and the right plan for repaying the loan.

1. If you do not have a payday loan lender in your local community, you can find lenders online. Just make sure to research the lender thoroughly, so you use someone trustworthy and respectable.

2. What are your reasons for taking out this loan? You should know exactly what you are going to cover with this money, and that expense should be worth the total amount to be repaid (with the interest). If it is not worth paying the interest, then back away from the loan.

3. Resist temptation to take out the maximum amount of money offered through a lender. Many personal loan companies will have a maximum that they can extend in general, or to people with your amount of income. Do not pay attention to these figures. Responsible borrowing requires you to take out enough to cover your justified expense and no more. This will make it much easier to pay the loan back in the future.

4. Read all of the fine print before taking out your personal loan. Even if you are taking your payday loan online, there should be plenty of information on the company and the terms of your agreement to go through. Do not skip this! You may be in a hurry to get the money, but you can rule out the worst lenders by reading the fine print.

5. Since it does take some time to find a really good lender, stick with one when you find them. If you are familiar with how things work with a company, you can get your loans faster. You already know how they work, and they become familiar with you after a few loans are successfully processed.

6. Never take out personal loans based on "maybe" situations. For example, if you might be getting some money in a couple weeks, that does not serve as a solid plan for taking out a payday loan. If you do not have the money coming in for sure, do not trust it.

7. Always have a backup plan for repaying your personal loan. If something were to happen unexpected with your expected plan for repayment, what will you do? Hopefully everything will go as planned, but it never hurts to have an alternate method of repayment.

8. Avoid taking out multiple loans at the same time. This might seem like a good idea if you cannot repay the first loan you take out, but it only leads to trouble in the future.

9. Be very clear on what a payday loan is, and how it is intended to be used. This is not the right type of personal loan for everyone.

10. Do not go into the personal loan process with fear. Know that you have the power to do this responsibly and to benefit in the end.
About this Author

Getting personal loan is so easy & hassle free. Credit Hub Capital is a licensed moneylender for personal loan in Singapore.

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