During periods of economic downturn, people are willing to take risks and get a lot of money quickly, often through instant loan apps. However, this urgency puts individuals at risk of being scammed and taken advantage of by unscrupulous individuals. Here is a step-by-step guide on how to avoid falling prey to financial fraudsters when seeking quick financial fixes.
Be Wary of Unsolicited Offers
Do not be quick to accept any offers that are offered to you, especially if they are offered to you without any prior request.
It is very uncommon for a legitimate financial institution to call directly to offer loans or any type of financial product. It is very important to avoid receiving any phone calls, emails or messages that offer to lend you money or help you get a loan quickly. These are some of the ways that scammers employ in order to get hold of their victims.
If you get an offer like this, do not give out any of your details or financial information. Rather, check the company on your own using the search engine to find the company’s website or phone number. Just as a reminder, if an offer looks too good to be true, it most likely is.
Research the Company Thoroughly
When selecting any financial service provider, one should always do his or her homework. Read their reviews, check their rating on the Better Business Bureau and ensure that they are registered with the appropriate financial regulatory authorities.
Avoid those firms with many complaints, those that have been in business for a short time, or those that do not have a physical address. Search for any articles or reports on the company especially those that may be associated with scams or fraud.
Terms and Conditions of the Website
Any genuine financial product will always be accompanied by the terms and conditions of the financial product. Beware of lenders who are not clear with their terms or those who will force you to sign without reading the contract.
Read all the terms carefully and try to understand the interest rates, the repayment period and any charges or penalties. Do not assume anything if you do not understand something, seek for further explanation. A good lender should not mind explaining his or her terms to the borrower.
Be Wary of Companies That Ask for Money Upfront
It is important to note that most of the genuine lenders will not ask for upfront costs before approving the loan. It is very important to avoid any company that demands payment in advance, especially if they want to be paid through wire transfer, prepaid card or through any form of cryptocurrency.
These initial costs may be camouflaged as ‘processing fees’, ‘insurance’ or ‘collateral. ’ Note that although some loans may attract origination fees, these are usually deducted from the loan amount after approval and are not paid upfront.
Avoid Lenders Promising Approval Regardless of Your Credit Score
Any genuine lender cannot promise you a quick cash loan without first considering your financial status. Do not trust any lender who claims to offer you a ‘guaranteed approval’ or ‘no credit check.’
Responsible lenders always assess the borrower’s capacity to repay the loan. If a lender does not care about your credit score or income, they are likely more interested in keeping you in debt.
Protect Your Personal Information
Avoid giving out personal details, especially when on a computer or when talking over the phone. Real financial institutions will have proper ways of obtaining the required information.
Do not give out personal information such as your Social Security number, bank account information or credit card numbers unless you are sure that you are dealing with a legitimate company. This information can be used by scammers for identity theft or for making fraudulent purchases.
Be Careful of Pressure Selling
Another common trick that fraudsters employ is to put pressure on you to make a quick decision. They might say that the offer is only available for a limited time or that you will lose your chance if you do not buy the product right now.
Responsible financial institutions know that borrowing money is not a small step. They will not rush you into making a decision and will allow you to take the time to make your decision. If you feel hurried or stressed, then it is probably a sign.
Conclusion
Just to reiterate, when it comes to your money, it is always better to be safe than sorry. Instantaneous financial services are quite appealing, but they are dangerous in most cases. Don’t rush into anything, and make sure to do your homework so that you don’t fall prey to con artists. Taking into account all these protective measures, one can avoid the pitfalls of the world of quick finance solutions and find genuine assistance for his/her financial problems.
