Finance

How to find best money lenders?

Introduction

According to the Federal Trade Commission, a total of about 3 3.3 billion was lost to consumers in 2020 due to fraud.  Potential fraudsters target the people who need it the most or are more likely to accept fake offers. If you are not careful, you will find yourself at the end of a personal debt scandal where you could potentially lose money.

You can learn how to check if the loan company is legitimate and avoid being cheated.

1. Guarantees lender approval.

Really credible lenders make it clear that they will need to look at your credit, sometimes getting reports from all three major credit bureaus (Equifax, TransUnion and Experian). Most lenders want you to know if you have a timely and complete bill payment date, to ensure that you will be prompt in repaying the loan.

Fraudulent businesses are not interested in your reputation. They look for high-risk lenders who lag behind in debt repayment and pay fees and penalties too late.

2.The lender is not registered in your state.

The Federal Trade Commission (FTC) requires lenders and loan brokers to be registered in the states where they do business. Check the lender’s website to verify the list of states where he does business legally. Best licensed money lender in philippines  if the lender you are interested in does not list any of the registered states, you may be dealing with a loan scam. Registration checks are an important step in ensuring that you are working with a reputable company, separating fraud from legitimate businesses.

3.The lender demands a prepaid card or other payment.

Some scammers are known to require prepaid debit cards, gift cards or banking information from borrowers. In general, fraudsters claim that they need information for insurance, guarantee or fees.  This is a scandal. Legitimate financial institutions may charge a fee for your application, appraisal or credit report, but these charges are deducted from your loan.

4-The lender calls, writes or knocks.

Be careful if you get a loan offer by phone, mail or door to door. According to the FTC, it is illegal for companies in the United States to offer a loan over the phone in the United States and ask you to repay it before it is repaid. This is a violation of the telemarketing sales role.

5.The lender has no physical address.

Every lender you are interested in should provide a physical location. Run it through Google Maps. Some businesses that run personal loan scams will list addresses that are actually empty in the lot, so it’s important to verify.

If you do not find a physical address, avoid the lender. Many fraudulent businesses are unrecognizable so they can avoid legal consequences.

6.The lender puts pressure on you to act quickly.

 Don’t rush into an urgent request. One of the hallmarks of personal loan scams is giving you an instant time frame to sign up for a loan because the offer expires soon – like within a day. Or the lender may say something bad is about to happen, such as revoking your driver’s license or filing a lawsuit, if you hang on without taking immediate action.

Conclusion

If you need a personal loan, do your research and compare multiple lenders to make sure you are getting a good rate from a reliable source. Even if you don’t have a lot of credit, there are many personal lenders who offer loans to borrowers when they need them, regardless of the status of the loan. Don’t be a victim of fraud. Instead, find a company that is willing to work with you wherever you are.