In the past, no one used to read the manual! Nowadays, we pretty much skip the terms & conditions part when submitting online forms.
But when it comes to online loans, you must read the fine print of the loan you’re getting. The loan agreement serves as a legally binding contract. If you fail to honor the terms & conditions, the eventuality is getting sued in a court of law and having your wages garnished.
What should you look out for? Check to see if the lender is charging extra fees. Pay attention to the loan’s features (APRs, term, etc.) Also, note the lender’s policy on late payments and defaults.
On the web, someone can assume a false person and scam you. Sorry to play on your fears, but it’s vital to borrow safe loans online.
The danger of getting scammed is only the start. When you fill out loan request forms, you usually enter very sensitive information. Some of the details, which are enough to make anyone flinch, include:
- Bank account number & routing number
- Date of birth
- Driver’s license number
- Employer’s name, address, and phone number
- Full names, street address, and apt & suite number
The worst situation is if your info fell into the wrong hands, and you end up a victim of identity theft. Another more mild eventuality is having your details at the hands of marketers & receiving unsolicited loan offers.
Avoiding online loans entirely is not the way to go. Millions of Americans borrow them without any issues. If you want to land safe online loans, here are some vital questions to seek answers to:
“Does the Lender Have Valid Contact Details & Physical Address?”
Despite issuing loans online, many loan companies maintain physical offices. Genuine companies also have working contacts and support email addresses. Some companies have integrated live chat on their sites.
So, take the time and call their number, especially if they are fairly new and largely unknown in lending circles. Also, establish that the lender is not operating out of their garage. You should ascertain that they are based in a commercial area with other offices.
“How Long has the Lender been Operating?”
Anyone can draft an “About Us” page and claim the company is ten years old. But here is a nifty trick to establish how long the lender has been around. First, check out the age of their website. Just search for sites with domain age checker tools. Also, view their social media pages, especially Twitter. It will state the year the page was created. Past posts can also tell you how long the company has been using social media.
Online scammers can create very convincing websites. Right before approving your loan, they might request you to send them an advance sum of money. The reason given might be to ensure you’re a serious customer. Funds are typically requested via wire transfer, which is hard to trace and impossible to reverse.
The only loans that you pay money in no credit check payday loans Madisonville TN advance are mortgage. These fees are paid when the loan closes. All the fees for installment loans have to be included in the loan’s APR. You pay them together with the interest rates.
“Are the Fees and Interest Rates Too Prohibitive?”
Another danger tied especially to bad credit loans is overpaying for the service. For instance, you might get charged an origination fee of above 5%. Ideally, the origination or administrative fees should range from 1 to 5%. If the interest rates are also 800% plus, it’s better to skip the loan altogether.