An online payday loan may be the answer to your financial problems. If approved, you get the money in a matter of hours for whatever you need – put the bills up, travel, invest in a business or whatever.
But care must be taken! Criminals have also reached the internet and are targeting people who are looking for quick cash and are careless when making their request. These scammers intend to steal money from you or sell your personal information under the pretext of giving you a personal payday loan or other financial service.
However, just a little attention to a few signs to avoid falling into any fraud. Below, we show you what they are so your payday loan application can be done without any problem!
Sign # 1: There is no credit check
Online lenders are in the business of making payday loans and charging interest when these payday loans are repaid. The only way they can know if a payday loan will be repaid is by looking at the credit history of the one making the request.
Do not believe in any lender who says they have “innovative” technology that can estimate your credit or interest rate on your payday loan through information such as your answers to a simple search or your social media.
Legitimate online payday loan companies will ask for your details like bank account, contact and CPF to do a check of your credit score – your score in front of the financial market that shows whether or not you are a good payer.
Sign # 2: Advance rates or payday loan guarantee
Charging for upfront fees or applying for a payday loan guarantee are the most common scams in online payday loan. In the first case, the lender requests the transfer of an initial fee to make their analysis and process the payday loan.
They claim that this serves as collateral for the payday loan. However, beware! The Central Bank does not allow this type of advance, that is, any request for an advance amount is considered a crime, for this reason serious financial institutions do not do this.
Never make any advance payment and the installments must always be paid to a legal entity (CNPJ) and never to an individual (CPF). Stay tuned!
Sign # 3: Company without legal entity registration
All personal payday loan companies must be registered as a legal entity (that is, have a CNPJ). Do not believe in a lender if they say they do not need to register because they are totally online or because they are not a Brazilian company. If they are not registered, they are acting illegally and can be a scam.
It is always a good idea to check the IRS website and consult the company. Even those who inform you of a CNPJ, it is important to check to see if the number is even real. This only takes a few minutes, which is not a very long time when you are trying to protect yourself against fraud.
Sign # 4: No physical address
This online payday loan fraud alert sign is not as concrete as the others but it is a good check and can save you if in doubt. Most lenders will have a physical address where the company is located. Even online lenders will have offices somewhere, even without performing face-to-face service.
Check the lender’s address on Google if you are not sure about the company. As we say, there may be legitimate businesses that do not have a physical address. However, this will serve as a differential when you are in doubt.
Sign # 5: Emails sent out of nowhere
Any stranger who offers you a commission, bonus or any money in an email is usually a scam. These email scams also occur in personal payday loans online.
You receive an email with a payday loan offer and a rate that is very good to decline. In the email, comes a link where you can provide your personal information. The link may have malicious software to hack your computer or the information provided is more than enough to steal your identity.
So never click on a link or open an attachment in an email that is from someone you do not know.