Many people think that payday loans are a scam by themselves. It’s not true. Lending organizations don’t break the law, offering small sums with sky-high interest rates. Payday loans are also notorious for trapping consumers in endless debt. Because these loans are so expensive, borrowers often have trouble paying them off, often causing them to take out more payday loans to pay off their debts.
Payday loans produce a lot of controversial opinions, but they can be a useful instrument in your budget management. Sometimes it’s just impossible to solve everyday problems without quick money. Anyway, the payday market continues to grow. Unfortunately, scammers keep abreast of the latest trends and invent new schemes to steal money. In this guide, we’ll talk about some precautions that can ensure your funds’ safety.
1. Never Pay in Advance
It’s a common scheme. A lender asks you to pay a small fee before you receive a loan. Remember that legitimate lending services never ask you to pay anything before you get a loan. Unfortunately, all you receive after the payment is a notification that your loan wasn’t approved.
2. Use Lending Services With a Good Reputation
A lender that has a successful business and a long history on the market is unlikely to practice scamming. Usually, such organizations have a lot of branch offices all over the country; some of them also offer online services like paydaysay.com. Obviously, you have to do some research, but it’s the case where information saves money.
3. Check the Security of the Application Page
Using online lending services can be convenient, but it comes with the risk of your personal data exposure. If the lender hasn’t guaranteed the security of the pages where you enter your personal information, it’s better to find another organization. First, check the URL address. You can trust only the pages with the address starting with HTTPS, not HTTP. It would be useful to scan the page with your antivirus software. Only after these measures, fill in the form.
4. Contact the Company Representative
In the case of online payday loans, you should try to contact the lending organization and talk to their representative before applying. It’s a good idea because this contact can tell you a lot about the lender. Trustworthy companies have professional and helpful customer support and communicate with clients politely and patiently. Of course, scammers can make personal consultations too, so it’s just one of the recommendations. Make a final decision only after thorough consideration of all factors.
5. Be Careful Reading the Conditions
Actually, it’s a good piece of advice for any agreement, but it’s a rule in the case of payday loans. A Payday loan can become a disaster even without any scam. Make sure that you carefully read and understand all the terms and conditions. Don’t be afraid to ask questions; here, the previous recommendation comes in handy. If you understand that there will be a problem paying back a loan, it’s better to find other lending organizations with more attractive conditions.
6. Don’t Send Money to Collectors
Scammers can call you claiming to be a collector. They can use threats and other forms of pressure. Usually, such scammers tell you to send money immediately. The caller can even have your personal data, but this doesn’t mean that it’s a real collector. Usually, it means that someone sold clients’ personal data to scammers. Don’t panic and don’t pay anything before seeing all the documents.
These general recommendations can help you to save money. But the scam schemes are constantly evolving, so we want to give some more advice so that you’ll be able to detect fraud.
- Always compare multiple offers. You can miss red flags if you look at one loan offer. But if you studied multiple websites and know their conditions, it would be much harder to trick you. And remember that if something is too good to be true, it usually isn’t.
- Carefully study feedback and reviews online. Don’t trust the organization with multiple negative feedback; it’s definitely a red flag. The absence of information can be a warning sign too.
- Don’t accept offers on the phone. Scammers often use phone calls because it’s easy to deceive without personal contact. Even if it’s not a scam, phone offers are usually not the best deal.
- Study law regulations in your area. Yes, again, studying. It can be boring, but you need to know what lenders can and can’t do and what rights do you have regarding a loan. Without such knowledge, you are an easy target for scammers.
We hope that even if you need money fast, you’ll take time to follow our recommendations and don’t become a victim of scammers. In any case, you have plenty of opportunities to ensure loan safety. Just be careful and pay attention to the details.