When your money is tight, the last thing you need is to get taken advantage of. Unfortunately, looking for cash loans online puts you at risk of getting scammed. In 2019, roughly 45,000 Canadians fell victim to fraud.
Thankfully, there are ways to ensure that you get a secure online loan. To avoid getting duped by fraudsters, pay attention to these signs:
1. An Unsecured Website
When browsing the internet for payday loans, make sure that the website is secure. There are some signs that you can look for that’ll let you know if it’s safe to proceed.
First, make sure that the website URL begins with “https” instead of http. The “s” at the end stands for secure.
Also, see if there’s a padlock symbol on the pages or where you provide your personal information. A padlock symbol is a sign that the site is shielded against identity thieves. If the webpage that you’re browsing doesn’t have these indicators, steer clear from it.
2. No Physical Address
Another red flag to look out for when browsing for online loans is a company with no physical address. Every lender should have a physical location listed. Even if you see one, put it into a map locator to see if you can get directions to it.
Some scam artists will put an address on their website that goes to a vacant lot. If you can’t find a physical address, don’t get a loan through that lender.
Also, stay away from companies that only have a P.O. box.
3. Vague About the Fees
Many scam lenders won’t post their fees on the website or don’t provide an answer if asked about it. Lots of fraudulent lenders will do a bait-and-switch where they approve a loan and then charge a fee for it. Anytime there are hidden fees that come up after loan approval, it’s a scam.
4. Guaranteed Approval
No legitimate payday lender is going to guarantee approval. If you come across the company that offers that, stay away. A secure online loan company will make sure that you qualify for funding first.
Any organization that’s willing to give you money without checking your income and employment is not trustworthy.
Lenders use your employment information, income, and other factors to determine if you can get the loan and how much you can be approved for. Without these details, payday loan lenders don’t know if you have the criteria to pay the money back.
It’s a negative sign if a lender agrees to give you cash without knowing if you can repay them.
5. The Loan Offer Comes to You
Most payday loan lenders advertise their business in a standard way, like online advertisement or mass media. However, if you get a money offer by phone or through the mail, that’s a problem.
Some scammers are even bold enough to knock on doors to run cash loan scams. If this happens to you, don’t fall for it. A legitimate cash loan company will not use these methods.
6. Pressure to Borrow the Money
If a lender makes it seem as if you have to get the loan in a hurry, that’s a red flag. Unreliable lenders are known for giving consumers deadlines for cash offers.
They’ll proclaim that the loan is only good for a limited amount of time. Loan providers who apply pressure are probably not trustworthy.
When shopping for fast loans, you should never feel pressured. Some payday lenders might give a deadline for accepting alone. However, it usually applies for many weeks, not days.
7. Unusual Payment Requests
Some payday lenders don’t charge an application fee. But if they do, they’ll apply it to the loan amount. However, if you come across a lender who asks for a prepaid debit card for an initial application fee, they’re likely a scam.
Many fraudulent loan providers will ask borrowers to use prepaid payment methods because it’s untraceable money. If they steal the cash from you, you can’t dispute it the same way but you can with a bank debit card or credit card.
Even if the lender doesn’t ask for a prepaid card, you should still stay away from those who ask for money upfront. Most legitimate lenders know that people who need to borrow money don’t have any to give.
Ways to Find a Reputable Loan Lender
Now that you know how to avoid scam lenders, it’s time to learn the indicators of a reliable loan provider. Here are a few tips:
Look for Online Reviews
One of the best ways to find out if the lender is legitimate is to look it up online. Chances are if it’s a reputable company, other people will talk about it.
Google and Yelp reviews are great sources for getting unbiased information about a company. Also,
if the lender is fraudulent, there are likely other people who’ve been duped by them and have spoken about it online.
Even if the lender only operates online, they should still have contact information. The phone number, physical address, and email will be on the website of a reputable lender. You can send an email or give them a call to double-check the information that’s provided.
Do You Need a Secure Online Loan?
If you need a secure online loan, Captain Cash can help. The application process is quick and easy, and we don’t do credit checks.
We also offer flexible installment options of 3, 6, or 12 months. Captain Cash is the best way to borrow money in Canada.
If you have any questions, call us at 1-888-226-1026 or contact us online, and we’ll get back to you shortly!