Taking out a loan has never been easier. In today’s digital world, borrowing money is as easy as one-two-three. Many online money lenders abound, giving borrowers quick access to cash.
However, borrowers should also understand that while there may be lots of legitimate money lenders, especially in Singapore, con artists are also waiting for naive folks to stumble upon their traps. This makes identifying authorized money lenders from fake ones a daunting task.
This blog post will look at how borrowers can easily identify a scammer from the real deal.
5 Ways to Spot a Fake Money Lender Online
While legitimate fast money lenders make it easy for people to access cash in emergencies, scammers are taking advantage of desperate folks needing financial relief. For this reason, you must know how to spot a scam from a mile away to protect yourself.
1. Check for a License
One of the very first things to look for in a money lender is their license. The Singaporean government requires all money lenders to have a license from the Monetary Authority of Singapore (MAS). This license allows them to operate under the supervision of the law.
Before approaching a lender, check if they are listed on the MAS website. If you can’t find them there, don’t go anywhere near them.
2. Don’t Believe in Too-Good-to-Be-True Deals
A scammer’s most common M.O. is to offer deals that sound very attractive to the point that they’re too good to be true. They might offer guaranteed approval at rock-bottom rates without the need for a good credit score.
Music to the ears, right? Wrong!
When it comes to personal finances, don’t believe in fairy tales. Do not risk your money, reputation, and sanity for the deceit of a sweet talker. Honest-to-goodness money lenders have rules and conditions in place. Make sure you perform due diligence before diving headfirst into a deal.
3. Inspect Their Website
Legitimate money lenders will have a professional-looking website containing clear information about their products, services, interest rates, and contact details. A sham online money lender’s site will look cheap and rushed, filled with spelling and grammatical errors.
Let’s say you stumbled upon the website of a Toa Payoh money lender. Upon checking it, you see that it is well-designed and very sharp and professional. As you navigate the site, you see that it contains all the vital information you need to make a wise borrowing decision. You see that they are very transparent with their rates and contact information.
If you see all of these signs, then you’re in the right place. If you don’t see any of these and the website looks like it was poorly designed and developed, you better start running the other way as chances are, they are financial predators hunting for prey.
4. Don’t Forget the Fine Print
One of the mistakes borrowers make is ignoring the fine print. Before signing a contract, make sure you go over the loan terms and conditions. Take your time to read the entire loan agreement. Look for hidden charges, late and prepayment penalties, and other fees that could significantly impact your finances later on.
If things aren’t clear, ask questions. Don’t settle until you are satisfied with their reply. Ask the lender to explain it to you clearly so you have a better idea of whether to proceed with the deal or not.
5. Be Careful With the Information You Share
Lastly, don’t disclose personal and sensitive information. This includes your bank account details, passwords, and NRIC number. Identity theft is getting more and more prevalent these days. When transacting online, ensure you’re on secure websites and channels to prevent scammers from stealing your identity.
Wrapping It Up
Unfortunately, online scams happen daily, including lending scams. Carelessness and neglecting due diligence will only increase the risk of becoming their next victim. Falling into their trap will put your finances and credit score at stake, and potentially cause unnecessary stress and financial burden.
Be wise and discerning. Borrowing money online can be very convenient but you have to do your homework, too. Following the steps outlined above will help you find a legitimate money lender that can provide some financial relief.
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