You’re thinking about taking a loan from an online lender but aren’t sure of its legitimacy. Oftentimes, those best fast cash loans are too good to be true. Before you even considering discussing a loan with this company, it is important to know the difference between an online lender and a scammer. Follow these ideas to ensure you are going through a legitimate online lender.
Fees: When it comes to legitimate online lenders, they will NOT charge for fees up front. When your loan is approved, they will deduct the fees from the approved amount borrowed. So, if the company you are asking to receive a loan from asks for a payment of fees first, find another online lender because it is a scam.
Wire Transfers: A giant red flag must come to your mind if the online lender asks for payment through wire transfers. These are a gold mine for scammers as wire transfers are generally untraceable, making it almost impossible to get your money back once you find out it isn’t legitimate. So, when you decide to deal with an online lender, make sure they send your money through a legitimate service and not wire transfers.
Location: Make sure the online lender has a legitimate phone number and address. Companies who use P.O. boxes as corporate addresses would be another red flag on its legitimacy. If the lender can’t be reached through a call center or by leaving a message on the answering machine.
Credit History: Scam companies will give anyone a loan, regardless of their credit history. They are out to make sure they get your money first, regardless of what your previous history is. Legitimate lenders will look at your credit history before considering giving you the loan.
Reputable Loan Companies: The Better Business Bureau has a list of legitimate companies with reputations. It’s important to understand that this would be the best starting point for finding a real online lender. The website removes scam businesses while doing research on the companies. Also, check for a valid business license; without one, they are not legal.
Urgent Deadlines: Scam lenders will often state that you have a limited amount of time before your offer expires. Legitimate online lenders will not give you a limited time offer. Scammers have urgent deadlines because there is a high chance the company won’t even exist the next day. Keep away from companies who make urgent pleas.
Remember that there are legitimate online lenders, but they are also scammers who are out to get your money. Be wise when looking for an online lender. Do your research and don’t get scammed.