Financials are often the root cause to every problem that arises out of weary situations leading to unhealthy consequences.
You may be a student, an employee, or an every-day-like-man burdened with expenses; chances are you’ll be applying for quick loans online with a blindfold.
Regardless of the fact that this virtual world of internet has far made it easier and quicker for you to apply for online personal installment loans, it is still prone to making these opportunities a ‘nightmare’ for you – of course if not dealt wisely.
Below we have highlighted 5 of the most serious concerns for you to look at while applying for online loans that you shouldn’t ignore:
#1: Advance Payments before Loan Disbursements
If you’re being asked to make a small advance payment before even applying for an online loan, watch out, it’s a trap! Always remember, genuine lenders will charge you a nominal processing fee from your loan proceeds, and that’s OK.
#2: The Policy Hack
Be vigilant to the underlying policies. Don’t fall a prey to bad lenders, even at times when you’re left with no other option. Your online lender may trick you into:
- Paying life insurance premium as an add-on without your consent;
- Renewing your loans at a frequency not allowed in your state/region;
- Paying extra charges than the state’s standard threshold in case of loan defaults.
#3: Channelization of Confidential Information
You’re helpless if your confidentiality is compromised and ends up in wrong hands. This is the most common trap and often the most overlooked when people are in an urge to applying for online loans, in the time of harsh needs. Bad lenders may sell your address, contact number, income details and a lot more to culprit channels. So, it’s always wise to consult a genuine online personal loan lender in your state. Do a market check-up and ask your friends who may have consulted online lenders and never reported such issues!
#4: Unsolicited Phone Calls and E-Mails
You may receive phone calls and emails from your consulted online lender to collect your information or to make a confirmation to proceed further, but it’s wise to double-check the communication medium if it’s really coming from them. Report immediately to your online lender if you smell something phishy!
#5: The Diminishing Borrowing Capacity
It’s quite of an obvious and an undeniable fact that online personal loans are pretty unsecured form of lending which reduces your loan borrowing capacity till its repayment. You as a borrower should understand that these loans are quick fixes to your everyday expense and not a long-term injection of finance. These loans should be treated as last resort (not the primary option at hand) because they come up with their own repayment costs and procedures.
What you do today pays you off tomorrow or makes you pay off if not executed properly. You just won’t be able to tolerate the consequences if you become a victim of online lending scam. It’s going to cost you way too much tomorrow which is appearing legit today!