We’re in a crazy world where some people take advantage of others. But when you’re in a position of dire need, it’s easy to be blinded by false promises especially when it comes to money matters.
Avoid falling prey to these scams by looking out for all these red flags directing you to nearest exit door because trust us, you don’t need this kind of negativity in your life:
#1. No physical address
The first sign of a sketchy lender is the absence of a permanent address that you can go to. While there are several online lenders today, legitimate ones will always have a concrete establishment that you can physically visit. If there’s none, then be aware that it might be fake.
#2. Guaranteed Approval
Some financial institutions can claim an easier application; some can promise quick approval processes; while some even assure you of low interest rates. But no legit lender can guarantee approval because no matter how flexible they are, they still have requirements to be met. If an automatic yes is promised, you better start thinking again, no matter how tempting it sounds!
#3. Advanced fees
One of the main reasons why you’re applying for a loan in the first place is because you are in need of money. Once they begin to ask for advance payments or extra charges even before you have processed your loan, then it’s another warning sign that you have to take note of since it could be a modus of scammers to get easy money.
#4. Sense of urgency
In almost every aspect in life, putting unnecessary pressure on someone isn’t a good thing. Same goes when it comes to your loan application. You should be able to apply at your own pace, whenever you’re ready. If you’re given an application deadline, then maybe it’s time to take a look at other options.
These wolves are constantly developing their modus operandis which makes it more difficult to track them down. Still, one must always practice due diligence especially in conducting research. Always make sure to check reviews or ratings and if possible, look for a trusted source like a friend or family member who can vouch for its legitimacy.
Last but not the least, always keep in mind that if the red flags are everywhere and it seems too good to be true, then it probably is. So be smart and make good choices!