How to Avoid Personal Loan Scams

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How to Avoid Personal Loan Scams

Scamming is an ever growing threat to your personal finances, with the volume stolen by scammers growing year on year. Not only a major risk to your finances, falling victim to scamming can be a huge source of personal stress.

That’s why, it is absolutely essential to recognise these scams in time and protect yourself from falling victim. As a leading lender to employees, at Salad Money, we provide secure loans specially designed for those who have been wronged by the credit score system. 

Despite growing awareness, if you’re in a difficult financial situation, it’s easy to fall into hope that a scam will solve all problems.

That’s why, we put this article, to help inform and protect you from the dangers of scams! 

Understanding the Characteristics of Personal Loan Scams

Despite the misery they cause, scammers aren’t stupid. When it comes to personal loan scams, many people struggle to spot them and end up falling victim to identity theft and other scams. Therefore, by understanding the characteristics of these scams, you can avoid them and protect yourself. Let us learn how to spot personal loan scams with the help of these indicators.

One of the biggest indicators could be the fact that the offer seems too good to be true. In cases where the lender promises to provide you a large loan at a low interest rate, or doesn’t perform any background checks, this may be a red flag. These scams could just be designed to lure you into giving them your personal information like bank account information or National Insurance Number. 

Researching the Lender Before Applying for a Loan

Conducting background research into the credibility of your lender is an incredibly important step in avoiding getting scammed. Look at their website, the reputation on the internet or social media and confirm if they’re a registered lender. Be sure to check out our Trustpilot page to see our thousands of 5 star reviews.

Genuine lenders will always have a physical address and a phone number that you can use to verify their identity. If your lender is only contacting you via email or text message, there may be something shady going on.

If you find a number of complaints against the lender or find a lack of professionalism in the way they deal with you, you may need to be extra careful. In such cases, it is always best to follow your gut and conduct thorough research.

Avoiding Unsecured Loans with High-Interest Rates

Unsecured loans with immensely high interest rates are specially designed to trap you in a never ending cycle of debt. Make sure you read all the terms and conditions and compare the APR with that of other personal loans.

If you find a large difference, it may be possible that you are going to have trouble paying the loan back. That’s why comparing loans before applying is very important as it can help you get the best deals. 

Moreover, you need to be on the lookout for lenders that refuse to provide you the estimate of the total cost of the loans including fees, charges and rates. This could be part of a scam to lure you into an agreement, before overloading you with charges and fees down the line, that you can’t afford to pay.

Choose Salad Money for Legitimate, Fair and Affordable Loans

Now that you know all about personal loan scams and how you can avoid them, it’s time to use these tips while looking out for loans.

Speaking of personal loans, if you find yourself in need of a personal loan and have a low credit score, we’d like to let you know that we’re here for you.

With a unique affordability assessment system, that helps you assess your creditworthiness without considering your credit score, we bring you our More Than Your Score loans.

With loans specially designed to provide employees with fair and affordable financial aid, we recognise that the credit score system can be unfair at times.

To learn more about our services, click here or get in touch with us now!

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