It is disheartening to learn that more than £3.5 million has been lost in 2017 by Britons in paying fees to online loan scammers. It is a steep 44 percent rise in scams this year and a majority of the victims belonged to the low income group households.
Whether you seek urgent loans for emergency situation or need a debt consolidation plan at cheaper price, you must be careful before signing a deal over the net. It is important to learn how to identify a loan shark and stay safe online.
While the revolution in FinTech services has practically made it hassle free to borrow online, a lot of unscrupulous people have made it a risky affair at the same time. According to the recent media reports, three quarters of people who were duped online in 2017 were unaware of the scam for a very long time. They were contacted by the loan sharks and asked for upfront fee for loans they never received.
Thus it is important to be aware of safe ways to avail loans online. For, there are legitimate brokers who charge upfront fees for better deals for borrowers with poor credit.
Regulated broker vs. Loan Sharks
According to the FCA directions, a loan provider can never contact you with an offer. It always has to be your query that should initiate the conversation for funding. Whatever be the deal, if the broker contacts you by themselves, you need to turn cautious. The first point of contact legally has to be yours in case you want a loan. Any broker or lender who contacts you with a great deal, exactly matching with your needs is likely to be a scam and you should not deal with any such broker.
Professional loan broker
Rather than contacting a lender directly for no guarantor loans, it is advisable to go through a loan advisor. When you contact a lender directly you owe the responsibility of checking the credibility of the deal.
However dealing with experienced broker helps you stay safe and secure. A lot of brokers do not charge upfront fees from brokers. With bad credit it help you avail hassle free loans for bad credit no guarantor no fees.
All you need to do is compare and choose the perfect match with the lowest interest rate.
Bad credit loans generally come at high cost. By using home equity however you can use homeowner loan and save enough. Homeowner loans are one of the better ways to loan online for bad credit. Neither do you need a loan guarantor nor do you need to part from additional cash on the name of high interest rate. Homeowner loans are less pricey and are more readily available for borrowers with bad credit.
Ease of repayment
Another cache to stay safe online with bad credit loans is to apply for loans with ease of repayment. Always opt for installments that can be paid out easily. Emergencies are mostly uncalled for. With poor financial health, it is not easy to stay afloat with even minimal of cash hassles. Thus it is always fruitful to avail loans with ease of repayment.