Do you need urgent money to arrange a birthday party for your son? He is 14 already, and you wish to surprise him with the grand celebration. You work part-time and thus cannot save much cash. You search for the loan providers and contact the first one only. It could be due to the quickness of planning all within a day. However, you end up getting duped out of your money. Instead of getting help, you lose your savings.
What could be a more threatening suffering than this? Moreover, limited income and savings may hinder other important goals. It may take good time to recover from the loss. Therefore, it is ideal to be safe and conscious while seeking loan providers in the UK. It may help you safeguard your money, reputation, and, of course, mental peace.
5 best strategies to avoid loan scams
The first thing to do to avoid a fraudulent loan company is Google out the specifics. Verify that the company actually exists. Consider the address and the reviews of the company. You can actually question your friends and family to deal with the right one. A company having a valid contact number, registration ID, location, and reputation is the best one.
- Always install the latest software
Having updated software helps you avoid catching any malware. When did you update your software last? Are you receiving constant updates and requirements on your laptop? If so, it is the duration required to correct one. It may take only a few minutes, and your PC will save you from malware practices.
Installing and enabling malware on your computers and laptops will protect them from hackers. You can even consult an expert for a detailed view of your laptop. He may help you point out potential issues that may make your information vulnerable to fraud. If you face issues like spam emails or your laptop lags a lot, get it checked.
Moreover, you may struggle to install software if doing it for the first time. Don’t worry about the money or the delay in the income. Check urgent loans for fair and poor credit scores. Yes, you may get bad credit small loans to bridge the amount. You can get it the same day without much hassle. It helps you counter any emergency cash needs immediately.
- Be conscious of phishing emails
Around 90% of the lending and borrowing frauds happen due to clicking on the phishing links. Always remember that no bank or financial institution sends an email unless you apply for the loan. You usually get one after you meet the criteria and affordability.
Alternatively, never click on the link and enter your bank details randomly. Instead, always call your bank if you receive any such specific message. It will help you stay alert and avoid fraud. Here is how you can do that:
- Never click on any suspected email link automatically
- Always remember that fraudsters can spoof email addresses and contact details. Don’t use it to verify any detail.
- Always contact the number mentioned on your credit/ debit card. Don’t trust the one mentioned in the mail.
- Get an updated copy of the credit report
It is always better to get an updated copy of your credit report twice a month. It helps you analyse your current expenses, debts, and income. Accordingly, you can plan a budget and stick to it to achieve a goal. It is better to get one from the renowned and established credit agencies like Experian in the UK. Here is why it matters before applying for a loan:
- Checking your credit report helps you identify unfamiliar debts or monitor your bank account for unusual activities
- Invest in a reliable software that may help you protect your bank account and credit report. It may alert you to the suspected spam and may prevent it.
- Contact the credit agency if you spot something suspicious immediately.
- Stay firm to “pressure tactics”
Most companies operating as direct lenders illegally in the country may force you to take a loan. They may not do it, apparently, but indirectly. However, you have to be clever enough to know when to stop. You can spot the difference between the two:
For example, you need a short term loan of £3000 to meet the urgent examination fee and buy textbooks. Here is how you can spot the fraudulent one:
| A genuine loan provider | A fraudulent one |
| “Yes, we may provide 3000 pounds if you meet a few conditions. You must be able to afford the loan payments, given the current financial conditions. Missing payments and late payments may affect your credit score. Thus, borrow only what you can afford to repay comfortably.” | “Yes, you may get a 3000-pound loan immediately without any credit checks or documentation. Anyone with a basic income, a credit score, or even the unemployed gets 100% loan approval with us. Moreover, you may get the loan at 0% interest and no fees.” |
Don’t fall for the buttery frame; stick to practicality by partnering with a genuine loan provider. Their terms stay customer-friendly, which protects you from suspected loss.
- Don’t entertain false calls
Most farce loan providers contact interested borrowers to offer a loan. They might offer unbelievable interest rates with limited hassle. Don’t fall for it, as it may be a scam. If they discuss and tell anything like:
- “You will get a guaranteed loan approval.”
- “We provide loans without credit checks”
- “You don’t need to provide documents or proofs”
- “O% interest rate loans”
Stay away from any lucrative deals like these. Guaranteed approvals without basic checks simply do not exist. It may affect you financially, and your credit score may drop. Moreover, there is nothing like 0% interest. You may get interest-free tenure; however, it is valid only for the introductory term. Always read the terms before proceeding with the loan.
Bottom line
Thus, these are some of the ways to stay alert and avoid scam loan providers. Identify your cash needs, calculate your affordability, and compare interest costs. Check the hidden costs and prioritise companies with a transparent cost structure. Also, search the company’s specifics in detail before dealing with that firm.
Roscoe Tanner
Roscoe Tanner is the Editor-in-Chief, leading a large team of writers at Versityloans . He has expertise in writing for various borrowing options like personal loans, long-term and short-term loans, unemployed loans and many more. Roscoe joined Versityloans in 2015 but previously worked with many reputed loan companies. He performs the major role as the editor, covering key aspects of loans and finance. Roscoe Tanner wants to serve at large in the progress of the company and to present a modern alternative to the traditional financial industry in the UK. He is a Certified Financial Planner and has a god-gift of connecting with people through his valuable suggestions and writings. His expertise as a writer and editor in the finance industry is based on his education qualification. Roscoe has done a Master of Business Administration (MBA) in Finance.
