With the rapid rise in purely digital businesses, online loan lenders have become incredibly popular in recent years. They are often able to provide quick, convenient, and online funding options for people in need, but just like anything else that gets wildly popular too fast, there is also a booming industry of scammers posing as online loan lenders.
To give you the information you need to identify and avoid potential scams, we’ve gathered this list of the biggest or most common red flags to look out for when you’re browsing online loan lenders. By staying informed and vigilant, and using Lending Bear for your funding needs, you’ll stand the best chance at keeping your information and finances safe from scammers.
One of the first things that should tip you off to a potential scam is getting an unsolicited loan offer. Almost no legitimate online lender will contact you out of the blue to chase you for a loan. Be suspicious of any unsolicited email, phone call, text message, or even junk mail that claims to be a lender, and always verify the legitimacy of a company before engaging with them.
Another red flag that often indicates a scammer is a sense of urgency. This is meant to either scare victims or get them to act hastily, without considering things. If any online lender is pressuring you, you can assume right away that it’s probably a scam.
If the website you’re looking at doesn’t have a physical address listed somewhere, as well as some general contact information. A major red flag is if an online lender doesn’t have any of that listed on their site. If you can’t find any address or valid contact info, steer clear of that lender for sure.
Many states require their online loan lenders to be licensed and registered with the state. If the lender you’re considering is in a state like Alabama, Florida, Georgia, Tennessee, or Louisiana, you may want to double-check the licensing for that lender just to be safe.
If you’re shopping for a loan, you’re undoubtedly going to be looking for one that is going to give you the lowest rates and best terms. Don’t, however, get drawn in by rates that seem too good to be true. This is often a way for the scammer to lure in unsuspecting borrowers.
Legitimate lenders will never ask you for an upfront payment of loan fees before giving you approval. If a lender is requesting that one or more fees be paid upfront, it’s likely a scam. Be particularly wary of wire transfer offers, which can be difficult to trace and recover.
No matter what you’re doing online it’s important to safeguard your personal information, but it’s most important when you’re dealing with the potential for identity theft and financial fraud. Stay vigilant, and be aware of what the red flags look like when you’re dealing with online loan lenders. Doing this will help you avoid scams and make more informed decisions about your short-term lending needs. If you need fast cash and need an online payday loan, Lending Bear has an online loan option that may be perfect for your needs, reach out today to get started. Cash when you need it, fast and friendly!