Do not pay for a loan in advance
When a lender wants a high fee in advance, you probably don’t have the honor of being solvent.
When someone wants money for the service in advance, we should be wondering what the business is. In the non-bank lending segment, such behavior is even very suspicious, bordering on a brazen attempt by a fraudster who only wants to turn you for money. Therefore, be careful and certainly do not give money a chance if you do not know who you are honored with. Thanks to the Internet, you can easily verify everything in just a few minutes.
Why pay for something that goes without saying?
You don’t need to pay for air. Nor is it necessary today to pay in advance for a non-bank loan. The only exception is a verification fee, which shows that this or that account is really yours. In this case, but it is a single dollar, so of course, you will not lose anything, the fee is, moreover, refundable. Therefore, also beware of loans from private individuals, where you can not effectively verify many things. Advertising in the press or on the Internet is often just a phone number or name, you do not see the ID number and other details of the provider otherwise provided by non-banking companies or banks on their websites. Finally, there is no reason not to be completely transparent and not to show that potential clients have nothing to fear. However, private lenders often do not calculate this.
What does a typical unfair loan look like?
You can see the opaque offer literally today and daily. They are mostly loans from private individuals. How do they manifest themselves? And what does its providers say? Similar things are literally similar to eggs eggs, it is usually said that.
- Provider does not mind that you do not work. Confirmation of income is required for solvent firms – it only shows you that you have to repay in the future without any problems.
- You will not be exposed to unnecessary questions. Certainly, even non-banking companies today have administration to a minimum, but income needs to be verified and basic personal facts about the applicant as well.
- You will receive a fairly high sum of money without a guarantor or material pledge. And it is not just about a few thousand dollars, as with ordinary micro-credit – but rather hundreds of thousands.
And, of course, we could go on, you can usually find similar offers in online discussions as a standard post where you don’t have to pay for advertising – and the provider is essentially anonymous. In the vast majority of cases, this is a private person, not a standard business person with an ID number, who has a personal website, let alone a company that deals directly with non-bank loans. Although the new legislation tightens the conditions for loans and meets the needs of consumers, it is true that our company will have to deal with this problem for a long time. Namely, private lenders respond to the long-term demand of those who do not have a job or live in hostels and so on.
There are also nonsensical charges
Loans from private providers are characterized by fees that do not sound rational at first sight. Usually they are in the order of thousands of dollars, which you have to pay in advance – to learn that you can not get the loan for some reason. Thorough screening of the applicant, credit intermediation, verification fee, all of this can require a lot of money. But you have no obligation to pay them, because putting money in advance is very risky, not only in the world of non-bank loans. Much better will be the classic non-bank variant, with which you have money in your account. Minimum administrative formalities, but above all also confidentiality from the wider surroundings. Nobody needs to know you’re taking out a loan, right? Such a thing should stay in your apartment, on your computer monitor.