Today borrowers have more online loans available than ever before. Many guarantee same-day payouts, exceptionally low interest rates, or money to those with bad credit.
A lot of these offers sound too good to be true. So, what can you, a person in need of a loan, do to stay safe? How do you know what loan institute is trustworthy and who’s out to bleed your bank account dry?
Luckily, there are some telltale signs of a scammer and ways to keep yourself safe when you look for a loan broker. Scroll down for more information on how you can borrow online safely, get what you need and pay it back without getting duped.
How to stay safe when you borrow online
At the time of publishing, one common scam remains; supposed loan brokers call up people at home and offer a loan at an unreal interest rate. Naturally, a lot of people sign up thinking that this loan will be a cinch to pay back and how nice that they didn’t have to do any hunting to find it!
Unfortunately, these scammers ask for an upfront insurance payment and then delve into the borrowers personal information which is later used against them. If the victim’s credit cards get frozen right away, it doesn’t matter. That “insurance” charge already did its work in insuring the scammer and they make off with at least a small amount of money.
True bankers or loan brokers will never call you at home. They wait for you to contact them. Banks don’t need to ask for any personal information – one quick code or name confirmation and they can access your file. If anyone tries to get your credit car number, government ID number, or other details by phone, hang up right away.
Other scammers take advantage of the call to borrow online with emails or SMS’ that offer unrealistic interest rates. Here are some things to look for if you get an email from a supposed broker:
- If the sender requests a copy of your official ID or a picture of you holding up your ID
- They ask you to make a deposit in the account of a third party, (often with an invoice), not the lender
- Any kind of insurance or tax payment before you take out the loan
- A lack of an official website or a website that appears unfinished, has lots of spelling errors, or was clearly written by someone who’s first language is not English
- The email address comes from a freebie account such as Outlook, gmail, hotmail, etc.
Advantages when you borrow online
Once you have a clear choice of a non-scam loan broker, you can get your documents together and borrow online anytime of day. Thanks to new technology available to brokers, loans can be packaged and sent in less than a day.
Credit unions and banks can take weeks to approve a loan and even longer to pay them out. The speed of borrowing online means you can get emergency fast. You don’t even need an appointment.
Online loans also tend to offer lower interest rates. Every loan is different and each offer varies depending on your credit score and assets, but chances are you can get a lower rate on your own through a digital offer than at a bank.
If you aren’t sure you got the best rate, you can easily check other sites and compare offers while online. A visit to several different offices in a day would take hours, but the online option lets you borrow online, feel confident you got the best offer possible, and know what other brokers would have offered so you can consider them for future loans.
Perhaps the biggest advantage is that you keep your personal situation private when you borrow online. There’s no need to appear in the office in person and beg for funds. It’s always a little awkward to ask for money, so the chance to fill out a quick form, confirm your ID and available finances to get what you need is a huge relief.
To make sure your choice of service is safe, look for the little padlock next to the web address in the top left corner. That means the site is secure and you can feel good about sharing your information.
Then check for the Australian Securities and Investments Commission website to make sure your broker’s service is registered and has a license number. Take a moment to read any reviews of the company. You want to know how they do with customer service, transparency, and accountability.
How much can I borrow online?
When you need a loan, you’re already familiar with exactly what you need and what it costs. Maybe your fridge broke down and needs to be replaced or it’s time for a new car. Brokers help people borrow online for a number of reasons and for a large scale of amounts.
The minimum loan most brokers can put together for you is about 500 AUD and the maximum you can borrow online is normally 50,000 AUD. Again, everything depends on what you need and how you plan to pay it back.
At LendEasy, we do loans for all of life’s emergencies. We help out single parents with emergency loans, we give car loans to people who need a better way to get to work, and we offer that money in several different packages.
Before you borrow online, get the exact amount you need and then check your budget to make sure you can stay on top of payments. Run a credit check on yourself, get a copy of your bank statement and have your ID close by.
Even if you have bad credit or currently don’t have a job, you may be able to borrow online to get what you need.
Ready to talk to one of our brokers?
Book a discovery call with one of our incredible team members at LendEasy to find out how we work with you and your budget. We work tirelessly to find the best package and payment plan for you.