This article will, of course, be another article about payday loans, but it will be a bit different from your usual pro-payday loans or versus-payday loans articles. It will be, if I have to describe it, a warning article, which will serve to warn you against a fairly new type of scams that are concentrated on online payday loans business.
What I am talking about are payday loan scams in which scammers make you pay or transfer some cash somewhere before you get a loan ( more details will be laid later ). Once you run out of any sources of money you might think about getting a payday loan. I don’t think that is a smart choice, because there are dozens of alternatives, but for the example let’s say you are left with only one choice and that is payday loans. You need money fast, but you are not stupid, you go and look for interest rates for multiple online payday loan lenders and you quickly find a lender that offers interest rates that are great, far below other lenders. And at that point you think: Yea this is a good choice !
Payday loan scams
This kind of deal you stumble on the internet Is probably a scam. There is a good reason payday loans have high interest rates, and that is because of the risk lenders take. And it has been so for the past 70-80 years, and the time for change is not here just yet. These scammers that make false payday loan sites have a good reason behind their low interest rate. When you apply for a loan they will make a contact with you and they will ask you to transfer some money to them in order to cover some fees and taxes. And that is how they get hold of your money. It is strange how many people fall for this kind of scam for there are three basic principles that should tell you from the get-go whether the loan provider is legitimate or not.
Basic principles on how to know is loan provider legitimate
- If you must pay some money in order to get some more then it is clearly a scam. Every payday loan provider will have high interest rate which will turn into high fee which you will pay back once the time for paying comes. No lender will ask you for money before or during a loan period. I still don’t understand why people fall for this, because this is old scam trick that is in use for decades.
- Other fake lenders will demand that you transfer money to prepaid card which you need to send to them or give them codes for it. It is same with first example, paying money to lend money is stupid way to get cheated.
- Better Business Bureau tracks all legitimate online payday loans sites and everyone is advised to check every lender with them. Go to their site and see whether the miraculous lender that offers great conditions has good standing with this organization, it will cost you nothing and it will save you some cash.