How To Avoid Payday Loan Scams

Word Scam on the background of one hundred dollar bills

The recent economic downturn has witnessed declining income and people turning to payday loans to take care of urgent financial requirements. The online payday loan industry provides a fertile ground for frauds and online scammers.

Common types of payday loan scams

A very common form of scam is when a lender provides a payday loan at an abnormally low interest rate. The lender has no phone number or address on the website and also asks you to send more information than is actually necessary. The payday loan companies who are scammers will ultimately not send you any money and tell you that your loan has not been approved. Majority of the scammers are only interested in getting information about your identity like your credit card number, passport and social security number and various other forms of personal information. The main goal of scammers is identity theft.

How to avoid payday loan scams

– It is wise to be careful of lenders who provide exceedingly low rates of interest. You should compare different rates from various lenders who offer payday loans to get some idea on the payday loan standard rates. When you come across one of the websites where the rate is extremely attractive – may be below 10%, do conduct a search on the net to find out customer reviews about the particular company. Certain sites dedicated to consumer awareness present objective reviews relating to the services and products of the online companies. Try to conduct a quick check with the Better Business Bureau website to get to know whether the specific company has ever been involved in any scandal. Reading through real customer concerns as well as commendations prior to making a particular decision will have a direct effect on the near financial future. Also do ask your friends or family who may have used the company’s services.

– Check to see whether the website caries the CFSA (Community Financial Services Association of America) seal. This is the sole national regulatory body in the U.S who is responsible for regulation of the payday loan industry practices and looking after consumer interests.

– Another way you can avoid being scammed is by not submitting several applications from various websites. Many individuals stay under the illusion that the more applications they fill out, better are the chances of getting approved. You should be aware that several payday loan providing websites do charge some amount of fees for submitting an application. You do not want to be caught unaware later on.

– A legitimate payday loan company will surely have a physical address displayed on the company’s website. A proper company will not have any hesitation in disclosing its contact address, phone numbers and other details.

– Be careful of unwittingly signing on to third party payday loan lending sites. They take your online application around to several lending firms. Unless they come out clean as regards whom they are sharing your information with, it is not a good idea to place trust on these websites.

Finally, ensure you read the contract a number of times. Do place special importance to reading the fine prints relating to the repayment plan prior to signing on the dotted line.

Finding A Legitimate Payday Loan Company


There are a large number of people in this world who require fast access to cash to meet their urgent requirements. These people do not possess credit lines or any credit cards. For such individuals getting a payday loan is the only option.

A company which provides payday loan gives facility to consumers to take short-term loans. In exchange, the particular customer gives the commitment to pay back the loan with any additional fees on getting the next paycheck. However, it should be kept in mind that you should take a payday loan from only a legitimate loan company.

What to look for in a legitimate payday loan company

Below are some of the pointers to locate a legitimate payday loan company. Look for a payday loan company which offers excellent service, has a reputation in the market, is managed and designed professionally and run by an actual company which has an understanding of the business and also the market, it is a part of.

– All companies which offer payday loans or cash payday loans should possess a state license. A few states do not allow for payday loans. These states will not give a license to a company in the particular state for offering payday loans. When searching for a specific payday loan lender, see that you can e-mail them and inquire about any information with regard to their state license.

– Security is a major issue when you are shopping for the payday loan online. After completion of the payday loan application page, it should display “SSL” or Secure Socket Layer. This is the best form of encryption which is available for commercial websites. Your personal data should be protected by the highest security available. You should ask your lender about what kind of data security system they have. If the company gives evasive or vague answers, do not consider taking a loan from that concern.

– Stick to those payday loan companies which are in the business for a while. These are supposed to be more reliable in comparison to those companies which have emerged only recently in the market. A good track record of a lender is what you should look for when you explore the market for payday loans.

– Avoid having anything to do with a company which asks you to fax in excess information. A lot of companies ask the borrowers to go through needless and excessive steps in the process of procuring a loan. This will unnecessarily cause delay to the whole process.

– Go through the policy agreement of the company. The company must have a stringent privacy policy. The contract must be written in clear, lucid and comprehensible English. The loan amount, loan fee, interest rate, the due date and any additional fees should be clearly mentioned.

Finally, do a little bit of research on the internet and go through customer testimonials. Also find out if any complaint has been filed against your lending company. Keep these tips handy to discover the legitimate payday loan company.

Finding A Bad Credit Score Mortgage Loans


In today’s economy, it isn’t uncommon for respectable individuals to use a lower than respectable credit history. Simultaneously, home values have fallen to the level that some believe that this really is prime time for you to purchase a home. But what should you do when you have previous poor credit or perhaps a low credit rating. How will you start locating a poor credit house loan?

Well it might not be as simple as receiving a mortgage loan with a decent credit history, but it’s not possible, with diligence plus a a feeling of responsibility, it could help correct your credit history.

The initial step is always to know your credit history. Check to be sure there aren’t any errors inside the report of course, if you will find, make a plan to improve them. Lenders are cautious when granting a poor credit house loan, so knowing your score displays a feeling of responsibility as well as the willingness to fix the score. It is better to improve your credit rating before you apply to get a house loan. Pay back the maximum amount of personal credit card debt as you can. With each debt resolution, however small, call the financing company and have should they will re-evaluate how well you’re progressing and report it to be able to make your credit rating creep support.

Spend time with your own personal budget. Take a look at all of your cash assets. Accumulate your bank checking account and family savings balances. Consider your monthly salary. Remember when you have a bad credit score, your house loan can cost you better pay of great interest. Knowing this, policy for the payment per month you your financial budget to ascertain if it really fits your budget. Actually pay this money right into a checking account. This may enable you to test your budget with all the additional loan payment, as well as offer you a start an advance payment. Begin saving immediately for any deposit. A poor credit house loan will demand a more substantial deposit than one with a decent credit rating.

A bank isn’t only spot to secure home financing. It is achievable that when you credit complaints are much less serious, you could be eligible for a VH or FHA loan for people citizens. Simply because they provide mortgage insurance through their organization, you may be eligible for a a poor credit house loan with these as well as other government departments. It will take time to analyze, however it could be worthwhile.

And irresponsibility isn’t only basis for low credit score. Often whoever has not used credit could have a low score due to too little opportunity or experience. If here’s your situation, plus you’ve got never obtained a home before, it’s possible to acquire a first-time buyer loan for any a bad credit score mortgage loan.

There are 2 other as they are considerations. The first is the ‘rent or lease to own’ option. This can enable you time for you to focus on helping the credit rating. Lastly consider approaching the average consumer and asking when they could be prepared to carry the note for a while of your time to be able to rebuild your credit history.

Visit the internet and perform a research session. While using term ‘bad credit home loan’ you’ll be able to discover several lenders who’ll be ready to grant a home loan. Proceed cautiously, however. These lenders typically request sizable up-front fees, and need a higher interest than conventional lenders require of these with a good credit score scores.

Although it might not be impossible to discover a a bad credit score mortgage loan, it is not easy. Such as the allowed this to discourage you. While you’re seeking that loan, you will be fixing your credit rating plus a advance payment for your home you’ve always dreamed of.