Perhaps, each of us knows that fraudsters come up with new methods of deception, which are sometimes difficult to distinguish. How not to be cheated when getting a personal loan? We will try to find out possible solutions to this question.
Free Cheese In a Mousetrap
For some reason, we believe when offered interest-free loans. A suspicious interest rate is usually a way to hide a disadvantageous offer. For instance, the borrower will receive an interest-free loan for a certain period (a month), but then the interest rate will be higher than of competitors. Moreover, many scammers use loans with extremely low rates for the market to lure people into a trap. After a borrower comes to this fake company, scammers begin to make various schemes for luring money.
Paid Credit Check
One of the simplest ways to lure money from a potential borrower is to say that they need to check your credit history. An employee of a fake company will insist to pay some money for this. Then the scammers come up with other reasons why you owe them money.
Obligatory Purchase of Insurance
Banks and many private credit organizations require compulsory insurance, but you can refuse this service and not overpay for a loan. Insurance is required only for collateral lending.
Many credit experts write in small print on their websites that they do not give loans, but only provide advisory services. They familiarize themselves with your documentation, help to fill in a loan application and provide a list of banks and credit organizations where you can apply. For this service, they charge you.
We recommend all borrowers not to pay to intermediaries. If you need additional consultation, contact the staff of your financial institution. They will consult you regarding all the issues and select a loan on favorable terms.
Manipulations with Credit Cards
Recently, card manipulations have become more frequent. Fraudsters try to get the card number and transfer money from it. The borrower receives a call from the fake lender security service “to verify the card data”. Most often this happens when applying for a loan online.
But fortunately, financial literacy is increasing, and it is difficult to get information about the card from people. Then the scammers use two other schemes:
- Fraudsters pretend to be bank employees and say that before transferring you need to check some info. The borrower is asked to tell the code from SMS. After that, money is transferred from the card.
- To confirm the card, fake lenders ask to transfer some cash to another bank card. After that, the caller disappears.
Not to fall into the trap of fraudsters – call the bank officer and check if such an employee really works for them and why he asks for your personal data. Remember, a real lender will never ask you to transfer money to another card. Be careful and keep track of your money.