How to Protect Yourself from the Wrong Payday Loan LenderApr 30, 2019
According to statistics, 25 million people in South Africa have active credit records. Worse yet, 10 million of these people are behind on their debt payments.
The truth is, while loans are a great way to get out of a sticky situation, you need to be sure that you can make the required payments. This is especially true with payday loans as they come with higher interest rates.
You also need to watch out for scams. With this in mind, here’s a guide on how to protect yourself from the wrong payday loan lender.
Protecting Yourself From the Wrong Payday Loan Lender
While payday loans do come with high interest rates, many people in Africa prefer them to bank loans. This is because banks aren’t able to address people’s financial vulnerabilities.
However, as these loans grow in popularity, it’s essential that you work with an honest lender. Here are four tips for protecting yourself against bad payday loan lenders:
1. Compare Operators
The first step to protecting yourself from the wrong lender is to compare different operators. It can be hard to determine the legitimacy of one website. But, if you compare multiple websites, you can spot red flags.
As with any professional website, look out for:
- Spelling mistakes and other small detail
- Fake addresses and phone numbers
- Lenders asking you for sensitive information
If a lender asks you for personal information, you should avoid them at all costs.
2. Research Them Online
The next step is to look at their online reputation. The best part of the internet today is that people leave reviews of companies they work with.
Start by looking at their social media pages. Then, find out if they appear in forums.
People who fall victim to a scam often do their utmost to tarnish a company’s reputation. They will publish a review or a warning message wherever they can.
3. Beware of Upfront Fees
A scammer will promise you a loan if you pay an upfront fee. They will ask for you to wire them the money directly. They may also ask for a gift card. Whichever method they choose, it’ll be difficult for you to get your money back.
Once you send them the money, they will disappear off the face of the earth. Legitimate lenders won’t ask for any money upfront. You will only have to pay a fee once you have proof of your loan approval and the funds are in your account.
4. Don’t Fill Out Fake Online Forms
Some scammers will ask you to fill in a form. These forms will ask for your banking details. By giving them this information, you will enroll in a membership program whereby they will take money from your account.
To stop this from happening, don’t fill out online forms that ask for sensitive information. In fact, use the company’s contact us page to talk to a representative directly wherever possible.
Get More Information From Hoopla Loans
Keeping yourself safe from the wrong payday loan lender isn’t difficult. The key is to avoid giving away sensitive information. You should also research them online. And, never pay a company any money until you are sure you have the loan.
In the meantime, do you have any questions regarding payday loans? If so, contact Hoopla Loans today.