There are many lenders out there who offer bad credit loans. Vancouver alone has hundreds of options to choose from, but how do you know if you’re getting into bed with a scammer?
After all, you certainly can’t afford to lose even more money. You’re already in a spot of trouble, having had difficulty maintaining a perfect credit score over the years. However, now something big has come up, and you need to borrow some money quickly. You’re confident you have the means to repay it without any issue, but regular banks don’t seem to accept you because of your credit history.
Here are some things to know that will help you tell trustworthy lenders from scammers. So don’t get caught in more trouble.
Loans Shouldn’t Require Upfront Fees
The whole point of you borrowing money is that you don’t have enough to spare. Therefore, a lender who offers you a too-good-to-be-true interest rate on a bad credit loan for a nominal upfront fee is highly suspect.
Often these advance-fee loan scammers will claim the upfront fee is for application processing or administration costs. They will often come across as pushy and usually require that the upfront payment be made into a gift card of some kind. Once you pay the fee, you never hear from the so-called lender again, and you certainly don’t get your loan.
Most reputable lenders build their costs into the loan repayment cost and are transparent about them.
Loan Approval Is Never Guaranteed
Again, honest lenders will never approve a loan before they’ve thoroughly assessed the risk. So any company claiming “guaranteed approvals” for bad credit loans is likely hiding something. Often such claims are a way for scammers to collect upfront fees from the gullible and the desperate before disappearing with their money.
Don’t Let Anyone Pressure You.
Any loan that comes with an extraordinarily close expiration date is most likely a scam. Scammers use such tactics to pressure you into acting before you can think it through properly. If you’re feeling flustered and pressured, it is best to step away. You should always feel like you’re in control of your decisions.
The Lender Must Physically Exist
Many online scams occur through convincing websites for companies that don’t exist in the real world. Therefore, you must verify the existence of the lender in the real world by checking third-party information. For example, are you able to visit their physical address? Do they even have one?
Before sharing any personal information, make sure you know what kind of company you’re dealing with.
For bad credit loans in Vancouver, you need a lender you can trust. Better Than The Bank can ensure that you get the help you need transparently and securely. Contact us now!