Legit Online Loans
Submitting an application for a loan is no small decision. There's a lot on the line, namely if things go wrong. But what could possibly go wrong?
Well, if you can't afford to pay back your loan, you could find yourself in a cycle of debt that can be tough to dig your way out of. Maybe you do damage to your credit. Or maybe you simply tie up any room you had in your budget with trying to pay back your loan.
Before you apply for a loan, it's your job to assess your finances to make sure that the money you're borrowing won't put you in a sticky financial situation down the line.
But there's more to it than simply looking at your own finances. While most borrowing arrangements that you walk into will be safe, that can't be said for all of them. There are scammers out there waiting for people to fall into their trap, so it's also important that you vet any potential financial institutions you're considering applying for a loan through to make sure you're looking at legit loan companies who will protect your personal information.
So, how do you know if a financial institution is offering legit online loans? We’ll take a look at some things you can look out for and go over some things you can do if you get scammed
How to Tell if a Loan Company is Legit
So, what are some things you can do to make sure that the financial institutions you’re looking at offer legitimate online loans? Let’s take a look at a few useful tips.
1. Look at Their Reputation Online
The first thing you can do is to start by going online to see what past customers have to offer on their experiences working with the financial institution you’re trying to assess. Of course, seeing what one person has to say about a company doesn’t mean that you’re going to have the exact same experience, but as the reviews start to pile up, you can get a clearer picture of what you’re ultimately in for.
In the past, if you were looking for legit personal loans, you may have had to rely on the word of one or two people who you know that happen to have worked with a particular financial institution in the past. Now, this process is made simpler (and more reliable) by going online and seeing what more people have to say!
2. Pay Attention to the Suggested Purpose of the Loan You're Applying for
A financial institution generally won't make you use the loan you've been approved for in a specific way. With personal loans, you're typically free to use the money you receive however you'd like. Having said that, legit loans are often intended to be used for specific purposes. The reality is that there are a lot of different loan options out there, and certain loans are better suited to certain situations.
For example, if you're facing an emergency expense like an unexpected car repair or leaky pipe in your basement, something like a personal line of credit may be able to help you if you don't have the savings to cover your expense. On the other hand, if your aim is to get a new paint job for your car, it's better to stay away from loans like this.
If you don't have a clear idea of how you should be using a specific personal loan, a financial institution that offers or services legit personal loans will typically go out of their way to clarify how their products should be used. So, if they clearly state that their loans are best reserved for emergency situations, you shouldn't apply for one to finance your next trip to the mall.
3. Make Sure Transparency is a Priority
When it comes to the more specific details of your loan, you’re going to want to pay close attention to the terms, rates, and conditions, amongst other things. If you have this information in front of you, you’ll know the cost of your loan, when you’ll need to make your payments, and the consequences of making late payments, or missing them altogether.
Because of the importance of these loan details, you’ll need to make sure that you have access to them and that they’re easy enough to understand. Along every step of the way, these details should be readily shown for you to see.
If, throughout the course of your loan repayment, you start to see unexpected fees that weren’t transparently laid out before you in your initial loan agreement, you might want to take this as a warning sign. And if you’re not sure what you’re going to be charged in the first place, don’t accept a loan offer.
4. Make Sure the Process is Secure
If you need a borrowing process that’s quick and convenient, your best bet may be to look for legit online loans that suit your needs. In a lot of cases, you’ll be able to submit an application any time of day or night, and you won’t need to leave your home to do it.
The one thing to keep in mind is that to apply for a loan online, you’ll need to give some personal financial information over the internet. This is something that, generally speaking, you should guard carefully. If it gets into the wrong hands, you could be in store for things like identity theft and fraudulent accounts being opened in your name.
Legitimate loan companies will make sure to have strong security and privacy measures in place to ensure that your personal information is as secure as possible. There are also strict state and federal laws that require financial institutions to disclose how your data is collected, stored, and used. Financial institutions that offer legit online loans will follow these laws to the letter.
What You Should Do if You Think You’ve Been Scammed
If you do end up in a situation where you’ve become a victim of an online loan scam, there are some steps you can take to limit the damage.
The first thing you can do is to send in a complaint to the Federal Trade Commission (FTC). You could then send in a complaint to the Internet Crime Complaint Center (IC3), which is operated by the FBI. It may also be a good idea to file a report with your local police. If someone has gotten a hold of your credit card information and is burning through your credit, you should also put a freeze on the cards being used.
Make Sure You’re Only Working with Legitimate Loan Companies
When you’re facing an emergency and you need some financial help, your instinct might be to turn to an online loan provider. If that’s the case, it’s important that you make sure that you’re working with a company that offers legitimate online loans. This means that they should have the measures in place that prove that they take your safety seriously.
On top of that, it’s also important to make sure that the loans you’re considering applying for are ones that you can actually afford. Make sure to do your research, assess your financial standing, and find something that works for you.