Payday loans online are convenient because they only provide the amount you receive from a typical paycheck. They can easily cover an emergency and they’re quick to pay off. Payday loans are also reliable. But that doesn’t mean lenders are.
But with so many Americans in debt, it’s easy for scammers to take advantage of borrowers. This is why it’s integral to identify a potential lending scam.
Here are 3 ways to avoid a payday loan scam.
1. Avoid Debt Collection Scam Calls
Have you ever received a phone call claiming you’re in debt? These are debt collection scam calls, the most famous being the IRS debt collection scam calls.
Most people ignore them because the scam is easy to identify — you know you’re not in debt so you won’t buy into it.
But savvy “debt collectors” know they can target borrowers who fear they won’t pay their payday loan no credit check off on time. They will call you, demand your payment, and may use forceful tactics such as threatening arrest.
If you receive these phone calls, hang up and block their number. Don’t give them any of your information and don’t give them money. If you’re worried, contact the lender directly.
2. Don’t Fall for the Upfront Fee
Most instant approval payday loans don’t require an upfront fee. However, many borrowers don’t know this. A scam lender may promote a “bad credit payday loan” only if you provide an upfront fee.
If this is the case, they’re a scam lender. Even if they promise you’ll get the money back after you pay off the loan or the fee will be deducted from your monthly payments, know a payday loan doesn’t require an upfront fee, and neither does most other types of loans.
3. Don’t Fill Out a Fake Online Form
Online lending is a quick and easy way to get your payday loan. Unfortunately, it makes identifying scam artists more difficult.
One of the requirements for your online payday loan is filling out an application online.
It’s difficult to notice a fake application, but filling one out can result in stolen money and even identify theft.
What’s the best way to spot a fake online loan form? A legitimate application will only ask for specific information. This includes:
- Basic information (age, address, contact information, etc.)
- Proof of a bank account (some applications don’t even require the full bank account number)
- Your last pay stub
- Your credit score
Lenders are different and will ask for additional information.
What information should you never give out immediately? Be wary if they immediately ask for your social security number and savings or retirement account numbers.
Keep in mind, some lenders request your SSN immediately. If so, ask them why before handing it over.
Avoid a Payday Loan Scam by Taking a Payday Loan With Us
The best way to avoid a payday loan scam is by immediately choosing a reliable lender. We offer payday loans for all borrowers, even those with bad credit. Here are some other articles you might find helpful:
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