5 ways to tell if a loan is reliable

If a loan sounds so good that it seems unreal, chances are it’s unreliable. Here’s how to tell if it’s really good!

Is the institution I’m applying for my loan a reliable one? Surely you have asked yourself this question when you start with a transaction with a bank or financial institution. It is not a minor question, it is probably the most important one.

We all go through difficult times, financially speaking, either personally, as a family or even as a society. You should not get carried away by the urgency you have at that moment, because if a loan sounds so good that it seems unreal, it is very likely that you should analyze it thoroughly.

How do you know if a loan is reliable?

It has probably happened to you to hear that you are offered a loan without conditions, accessible and easy to pay, if so, pay a little more attention to both the product and the institution or person who is offering it.

This does not mean that all credit is dangerous, or that an easy loan is not reliable, not necessarily. It means that it is necessary to carefully analyze certain elements to verify that it is a reliable institution and not a fraud.

People have lost from $1,000 to $100,000 by falling into easy loan offers. How to detect that it is a reliable loan? Let’s start by analyzing how these scams generally operate:

They supplant names of institutions.

Generally, these fake companies use the information of financial institutions so that people fall for them.

They ask for few requirements

Another element of the modus operandi of these companies is to ask for very few requirements, however, they may ask for a cash advance, justifying it as a payment for procedures.

They disappear

Once they get the person to pay the advance, obviously, no credit is granted. The user who has been scammed cannot contact them again or they discover that they were not part of the company they indicated.

If you identify these patterns in a loan you are offered, you should be careful that it is not a fraud.

5 ways to know if a loan is trustworthy

If you are considering applying for a loan and don’t know if it is reliable, consider these tips before you risk fraud:

If a loan sounds so good that it seems unrealistic, you should probably analyze it thoroughly.

1. Do not ask for a cash advance.

A warning sign is if you are asked to make an advance payment, payment for commissions, procedures or any other concept, where you need to hand over money in cash. Any institution that makes this type of request is not a reliable transaction.

2. Check the financial institution’s information

Make sure that the institution is registered and complies with the rules established by the country’s authorities. Try to corroborate the information provided: address or telephone number. If it is an institution you can go to, do so if you have doubts or consult their official websites to call their numbers and confirm that the loan they are offering you is part of their products.

3. Analyze the process

Another essential tip is to analyze the process in general, be suspicious if it includes any of the following situations: They ask you to provide data from your credit cards, debit cards or personal documents. They do not review your credit history. You are not asked for collateral or guarantee. The process is done through social networks.

4. Provide clear information

It speaks well of a loan and of an institution, that its information is very clear, from requirements, process, amounts, interests, monthly payments, etcetera.

5. Do not ask for private information

Although every application involves providing personal information, it is very different from being asked for personal or financial information that does not correspond to the process and that is also private. Be careful because identity theft is a very common fraud, in which people give all their information in the hope of receiving a loan at the end, which is not the case.