Top 7 Internet Loan Scams
When you’re searching for a personal loan, your online security should be just as important as your interest rate. Avoid today’s most common internet loan scams by looking out for the following illegitmate loans.
1. Loans that require an upfront payment.
A legitimate online loan won’t require an upfront payment. A lender or website that asks for payment up front – whether by check, wire or online payment – should be a red flag. Real lenders will only need an application, not an upfront payment.
2. Loans by lenders that don’t offer contact information.
3. Loans with guaranteed approval.
Even lenders with the most flexible requirements must reject some loan applications. After all, lenders only work with borrowers who have the ability to repay their loan, so applicants without income are often denied. Guaranteed approval is a sure sign of a scam. Instead, look for loans that offer high approval rates, even for those with bad credit or no credit.
4. Loans offered on unsecured websites.
Any website that collects personal information should have a security certificate, or SSL, which means the site is secure. If the loan application page doesn’t begin with “https://” then it isn’t a secured website, and any information you provide might not be safe.
5. Loans offered to unemployed borrowers.
All lenders and all types of loans require some way to repay the loan – usually a monthly income. Unless you can show that you have regularly recurring income, lenders won’t be willing to lend you the funds you need.
6. Loans offered without clear interest rate information.
The website you use to find a loan should offer clear information on the possible interest rates of their loans. If it’s a loan-matching site, like ClicknLoan.com, you’ll find an exact range of APRs that you can qualify for, making it easy to see what kind of interest rates you can expect.
7. Loans offered by companies that aren’t real.
If a lender can’t provide information on their business, interest rates or they way their loans work, chances are, they aren’t a real lender. You can avoid today’s most common loan scams by finding a company that puts your interests first.
See what you’ll qualify for today.
At ClickNLoan, that’s exactly what we do best. When you need to find a legitimate online loan that will fit your needs, apply to get approved for up to $5,000 in just seconds.