Applying Online…Is It Safe?
There are literally thousands of websites providing online loans. Getting a loan online is a great convenience. However, there are several scenarios to be aware of that will help you avoid falling victim for a loan scam or paying more for your loan than you should.
Watch out for advance fee loan scams!
Online loans are usually just as safe as applying at a bank or credit union. However, there are predatory lenders out there that make a living taking advantage of those in desperate times in need of immediate cash. The firms that set up these websites know what they are doing. They often promise loans to those who have been turned down elsewhere. If you fall for their scheme and apply, your personal information can end up anywhere. The most common type of online predatory lending is called ‘advance fee loan scams’. Advance fee loans NEVER pan out. If you ever apply for a loan and receive notification that you have been approved, but are told that you will need to first wire (usually via Western Union) any amount of money (they usually only ask for several hundred dollars) as security for your loan, terminate all communications. Think about it, why would you need to send money to get money?? Save the emails, letters, phone numbers, and anything else related to any company requesting money up-front for your loan approval and forward it to your local authorities.