Being an immigrant in a new and unfamiliar country is tough. Apart from the processes of adjusting and finding your way in your new home, there are inevitable instances where you could be prey to deceptive practices.
People get into financial binds every now and then. Often, the desire to fix such problems instantly can mean diving headfirst into services that promise the illusion of a solution, only for you to regret it afterward. That being said, while borrowing extra cash from companies can help you cover immediate expenses for the meantime, there is a high probability that you may be lured into accepting fake offers. Such a situation can pose a serious threat since you can lose money and personal data simultaneously.
Before deciding whether or not you should pursue an offer from online lending companies, it’s always a wise choice to consult an immigration professional for Why Canada so you can be assured and guided of what you’re going into. Moreover, they can also provide a backup plan in case things get awry.
There are plenty of legal online lending companies you can always turn to for cash assistance, but discerning whether one can be trusted or not is something that most borrowers often overlook. For this reason, here are some tips for you to easily spot whether an online lending company is a scam or not.
5 Tips to Spot Online Lending Scams
- The lender does not pay attention to your credit history.
Reputable lenders make it a point to look into your credit history, even to the extent of obtaining reports from credit bureaus. They do this to know if you have a history of paying bills exactly when they’re due and whether or not you will be responsible enough when it comes to repaying a loan.
On the other hand, fraudulent businesses aren’t interested in your credit history. Most of the time, they are usually inclined to seek high-risk borrowers who have a high chance of falling behind on their loans while incurring excessive penalties and late fees. While it’s true that there are still trustworthy lenders who can still provide bad-credit loans, they’ll still take effort into knowing more about your employment information, income, and more before providing you a loan.
- The lender is not registered within your state.
It’s a staple rule for loan brokers and lenders to register in the states where they conduct their businesses. For this, you should check the lender’s website to check the states where it conducts its business legally. If you discover that the lender you’re interested in isn’t listed in any registered states, then that means you’re likely dealing with a fraud.
Checking the company’s registration is essential to make sure that you’re making a deal with a credible company, separating the scammers from the legitimate ones.
- The lender usually writes, calls, or knocks.
If you receive a loan offer through the mail, by the phone, or even through solicitation, beware. According to the rules of the FTC, it’s illegal for online lending companies to offer loans over the phone and then ask you to pay before they start to deliver.
Reputable lenders do not target you through the mail, phone, or door-to-door solicitations. Search for lenders who market themselves through traditional mass and online media.
- The lender does not have a physical address.
It’s important to note whether or not the lenders you’re interested in have a physical location. Just to be sure, you can run their venue through Google maps as well. Some fraudulent businesses that offer loan scams will list make-believe addresses that are only just vacant lots, so it’s vital that you know this before borrowing money.
If you don’t see any sign of a legitimate address, then that means you should avoid making transactions with the lender. The absence of a physical address allows these scammers to be untraceable to evade legal repercussions, which can especially be frustrating if you’ve fallen prey to their deceitful acts.
- The lender pressures you to pay within immediate deadlines.
The urgency plea is often meant to pressure you. One of the tell-tale signs of a loan scam is giving you an urgent deadline to sign on for your loan since the offer expires almost immediately, such as within a day.
Lenders that resort to high-pressure strategies can mean that they are fraudulent businesses. They do this ploy to pressure you into making a rash and poorly thought decision. Because of this, always remember to decline loan offers that are set within immediate deadlines for you to come up with a choice. Reputable lenders often give borrowers weeks to accept loan offers.