We live in a time when everything is at your fingertips. More and more people not only shop online, but also pay their bills or rent using the internet. No wonder that borrowing money over the internet has become increasingly popular. However, is it completely safe?
An online loan is by far the fastest and most convenient way to get a cash injection. An online loan has undeniably many advantages. You can apply for it whenever and wherever you want – all you need is an internet connection. What’s more, if your application is approved, the money will be in your account the same day. However, if you act carelessly, we can easily fall prey to cheaters and tricksters. So how can you borrow online securely? This short guide will show you a safe way to get a quick online loan.
1. Check if the lender is regulated
Under UK law, all brokerage companies or companies that directly provide online loans must be approved by the Financial Conduct Authority (FCA). Before you decide to take out a loan online, check that the company that grants it appears on their register. You can find the FCA register here. If the lender of your choice is not in this register, it should be an alarm signal for you. An unregistered lender can be a mere cheater who is just waiting for the opportunity. And don’t be fooled by the attractive design of his website – anyone can set up a domain name, so this doesn’t prove the credibility of the borrower.
2. Check the lender’s opinion
Before submitting your loan application, check what other internet users think about the lender. Enter the name of the lender or the password of the loan in the uk forum into the search engine and find out what its former customers have to say about the lender. Were they satisfied with the lender’s services? Did the money arrive on their account on time? Did they consider the level of customer service adequate? If the answer to these questions is ‘no’, this should give you food for thought. Nevertheless, in the case of negative comments it is worth asking about the reason for negative experiences. It may turn out that the customer did not comply with the terms of the contract and the lender acted accordingly.
3. Familiarize yourself with the lender’s offer
Is the online loan offer written in a clear and transparent way? Each loan agreement should contain the following information: conditions for granting the loan, total cost of the loan, repayment period and maximum loan value. These elements should be visible in the offer so that you do not have a problem finding them. A good brokerage firm will have nothing to hide, so you won’t find any legal tricks in its contract. A good broker will also not charge any fees for presenting you the loan offer, nor will it charge any costs before the loan is in your account. So before you decide to sign a contract with the lender, check if it contains hidden fees and what appears in the text in small print.
4. Watch out for companies that offer loans without checking your creditworthiness
Loans without credit checks sound very tempting, especially for people with a low credit score (bad credit score). However, don’t be fooled – loans without credit checks are just a marketing gimmick invented by loan companies. It is not possible to grant loans without a credit score in the UK, and this is because all lenders in the country, as required by the FCA, must check the credit histories of applicants before granting them a loan. This means that the loan company can only grant you a loan after checking your credit rating. This does not mean, however, that you have no chance of getting a loan with low creditworthiness. Payday loans in the UK are also granted to people with a low credit score. If you have a problem with low credit rating yourself, get acquainted with the offer of one of the loan brokers. A proven broker will help you find the offer best suited to your financial situation.
What else should you watch out for?
A common method used by scammers is to get clients to get loans over the phone. Fraudsters call potential borrowers, claiming to be a representative of one of the known loan companies and urging the callers to take out a loan. If such a person agrees to take out the loan, the scammers give the address of a fictitious website and ask for payment of an “operating fee” before granting a loan of eg $ 100. Unfortunately, immediately after paying the fee the lender disappears and is no longer traceable. How to protect yourself from this?
1. Don’t answer calls from potential lenders
No loan company, bank or broker TELEPHONE to potential clients and do not urge them to take a loan. If you are ever in a situation where a person calling from an unknown number persuades you to take a loan, hang up. You are most likely talking to a scammer who is only impersonating a reliable company. You can find more information about this form of fraud here.
2. Protect your banking information
Your pin number, your payment card number together with your CVV number and your password for online banking are information that should be known to you ONLY. No one has the right to ask you for any of this information, not even your own bank! This is very important because scammers often try to get this information by pretending to be financial institutions in which we have an open account. Do not be fooled by this and do not disclose confidential information to third parties, even if they sound credible.
3. Do not open suspicious emails or attachments
Thieves claiming to be loan companies often send emails urging you to take out a loan or credit. Do not open such messages, especially if they contain links or attachments. These emails are designed to introduce a virus to your computer, which is designed to copy your private data and pass it on to fraudsters. If you see this message in your inbox, immediately delete it or mark it as spam, without even checking its content.
Act with caution
Following these simple rules will slowly let you make financial transactions safely without any risk. Remember to always protect your bank details and not give access to them to third parties. However, if you happen to be a victim of online scammers, report it immediately to the police or Action Fraud.