Online Loans Red Flags

Online loans are accessible from the comfort of your home. But can you trust all the websites you find? Are they all legitimate lenders? Do they sell your data to third-parties? What can you do to stay safe?

What Are the Risks?

When sharing any personal information online, you may be subject to certain risks. The people or businesses you interact with could be a fraud and have no affiliation to lenders at all. Their only goal is to collect and sell data; you will get many sales calls, in the best case. It’s crucial to stay informed about identity theft, especially when you share your social security number on a website you don’t fully trust.

Warning Signals

You should be concerned when the website you are viewing advertises perfect loans. If you see “instant approval” or “no credit checks,” be aware that none of them is possible. No companies will approve you before checking your request, and all of them do at least some basic credit checks.

How to Check a Company’s Credibility

• Check for their contact details at the bottom of the page. If there is a physical address, chances are they operate under a registered business name. You can look into it for reassurance.
• Verify the website’s credentials to see when it was created, who the owner is, and their location.
• See if you can find reviews for their business on reputable third-party websites. If they also have a good reputation on the Better Business Bureau website, you can confidently proceed.
• Quickly inspect the lender’s website. A legitimate company will have more content than on only one page, and you will be able to find references to it when doing a simple internet search.
• When speaking with a lender, never sign anything if you have doubts. If they advise you to lie or pressure you to pay anything upfront, turn them down.

Advice

Do some research before submitting your application. Check the lender to see if they are a legitimate registered business. When in doubt, ask for help. If you know someone who had a positive experience with an online loan, ask for their recommendations.