When there is an urgent financial requirement, applying for a personal loan might be the solution you will go for as you can use the personal loan calculator and figure out how much you exactly need. When there is a medical or a personal emergency, your emotional quotient will overpower, and you might be vulnerable. Numerous fraudsters are waiting to trick you, and therefore you need to be extra cautious.
Here is The Five Warning Signs
One of the primary warning signs to protect yourself is to be aware of the upfront costs. If the lender asked for the money to get a loan, it cannot be a legit lender and be sure you are being scammed. You do not have to pay to get a loan and if you are being asked for processing, insurance or any other fee, do not go ahead with that deal. The financial institutions also charge processing fees and additional charges, but that fee is deducted from the loan amount. Therefore, those lenders and institutions are safe and secure, and you can take a loan from them.
Guaranteed Loan Approval:
If you get a message that offers an already approved and guaranteed loan, do not go for it because there are chances of it being a scam. Loan approval cannot be guaranteed without being eligible for certain factors, including your credit history, document verification, CIBIL score, and so much more. So if you come across such a thing as a guaranteed loan, it is a scam, and you should not fall for it. Loan approval takes time and is a process so you cannot get a pre-approved loan without anything being considered.
Be Aware of Online Phishing:
One of the essential five warning signs to protect yourself from personal loan scams is online phishing which you need to be careful of. If you are checking the website of the lender, you need to check if there is’s’ after ‘Http’. If you see there is no ‘s’, it’s a warning sign that the website is not safe and can be a scam. If you end up applying for a loan on that website, there are chances of them using your personal information, bank account details and passwords. The web address plays a crucial role because otherwise, it is difficult to differentiate between a scam website and a real one.
No Credit Check Process:
If you meet a lender who is willing to grant a loan with a nominal interest rate, and go ahead without checking your credit score, be assured of it being a scam. It is another vital sign to protect yourself from falling prey to such scams. However, a financial institution that is real will never grant a loan without checking your credit history and background because they will always want to ensure that you are eligible and capable of repaying the loan. Your creditworthiness is always checked and therefore if it is not taken into consideration, it is not a legit lender.
Time-Bound Offers & Immediate Commitment:
It is a famous trick used so that the borrowers who are in an urgent need for a loan should act quickly without thinking it through. It is a warning sign that the lender and the loan could be a scam. If you are being asked to complete the paperwork and apply for the loan because it is only a time-bound offer, then you need to be cautious and check everything because it could be a scam.
Legit financial institutions will look into your credit history and determine your creditworthiness and so they will never pressurize you for immediate commitment. Pressure tricks and urgency is used to trick you for falling into their trap.
Therefore, the warning signs mentioned above will help you in figuring out the tricksters so that you are safe and do not fall into their traps.