By Sybria White on May 20, 2010
.jpg.aspx?width=75&height=75) Have you searched the internet when you were scrapped for cash? Did ads claiming no credit check required or get money fast stand out? These ads, likely advertised no credit check loans, the subject of this article. No credit check loans, are, as the name implies, loans that require no credit check. This may seem like a great solution initially, but actually you should be weary about pursuing these loans.
The reason you shouldn’t drop what you are doing and consider these loans is due to the advanced fee they will likely require. As the sayings go, “Nothing in life is free” or “What’s the catch ?” There is almost always something to offers that seem too good to be true, and no credit check loans, are no exception. Here are few warning signs to avoid the strings attached:
- Lenders who are not interested in your credit history. Everyone deserves a second chance but think about it, experience does matter. You can not learn from mistakes or anything about yourself without at least looking to the past. This rings true in life, and when it comes to credit. Sure you deserve a second chance, but doesn’t your past have some value, especially when it comes to money? If you had to lend someone you know a large sum of money, wouldn’t it be is your best interest to know a little about their financial past? Therefore, if a lender seems disinterested in your credit history there is probably a catch.
- If the lender is not registered in your state look elsewhere. Lenders must have registration in the state they conduct business, therefore if they not registered this is a warning sign. To check registration of lenders call your state Attorney General’s office or your state’s Department of Banking or Financial Regulation. The numbers are listed in the blue pages.
- If disclosures about fees aren’t clear and prominent, you should definitely be suspicious. “Always read the fine print” is another popular saying that is relevant to this topic. If the fine print is about fees, consider that a red flag. Reputable lenders are always up front about expectations. You as a consumer have rights to this information. Therefore if it is hard to find, something is up.
In addition to these tips, be on the alert for lenders that ask for personal information by phone or email before funds are sent to you. This could be a potential risk for identity theft, a prevalent crime in the information age.
The best tool to avoid potential scams and “no credit check loans” is to trust your instinct. If it doesn’t seem right you have no business investing your valuable time and money into it. Always keep in mind, if it seems too good to be true, it usually is.
Note: Denials of credit are a warning sign of more severe financial problems. If you are trying to obtain a loan to pay off debt, you may wish to consider seeking credit counseling to find better alternatives.
Sources:
http://www.ftc.gov/bcp/edu/microsites/moneymatters/dealing-with-advance-fee-loans.shtml |