At certain times, a loan may be essential. If an emergency happens and you need quick cash, for example, it may be a solution. Precisely for this reason, there are also those who seek to take advantage of this situation.

So Good for Credit finds it important to show clients how to recognize loan fraud. Remember: any advance deposit for a loan is a crime and a sign of a scam.

How does a loan work?

How does a loan work?

Anyone can apply for a personal loan, just have a social security number, proof of income and be over 18. Ideally, look for the institution that will make the loan. It is important to do this process very carefully to ensure that you will not fall for scams. To get the best deal, compare rates and run simulations.

Following your loan application, the institution will analyze your credit to determine whether or not the loan will be approved.

If so, the money will fall into your account sometime later. In online mode, this is even faster, and may only be a few days. At Fine Bank, the amount is deposited within 48 hours!

This process is the basics for any type of loan, either online or in-person at a financial institution. Remember that each financial company has its own policy, so some details may change. Regardless of where you apply for a loan, it is important to know that you never make a deposit before you receive the money.

No matter the type of loan, this is a clear sign of a scam as the criminal does not intend to send you the money. So do not fall into this trap and do not make advance deposits.

When you want a reliable, fast and secure loan, Good for Credit helps you find the best rates! Visit our website and check it out!

Loan Rate

Loan Rate

Being a financial product, the loan involves some fees and charges that may be charged. The first, and which is part of any loan is the IOF (Financial Transaction Tax). It is a federal tax, being charged on loans and various other movements, such as foreign exchange, insurance, and some investments.

There is also the interest rate of the loan. This is the amount the institution charges for the service, ie how it makes money by offering the loan.

Several factors contribute to the rate of the rate, such as the level of risk, the amount of the loan, the terms of repayment, and even the overall state of the economy. This is why it is so important to research extensively before making a loan.

All of these values ‚Äč‚Äčtogether help make up the CET of the loan, which is how much you actually pay. That is, it adds the value of the previous rates with all the expenses that the consumer will have when closing a loan.

With the exception of the IOF, all these amounts may vary depending on the institution offering the credit.

The most important thing to consider is that all these amounts come “embedded” in the loan, meaning they are part of the account you will pay. Again, it is noteworthy that none of these or any other amount can be charged in advance.

Loan Scams: How They Work

Loan Scams: How They Work

To avoid any problem and not lose your money, you need to be very attentive to the main ways that loan scams occur. Generally, scammers take advantage of times when the victim is most fragile, that is, when she is negative, in a hurry or not so knowledgeable about the subject.

For the negatives, for example, the promise is that they get the loan very easily. There is a possibility of credit for negatives but beware of scammers who make many promises.

And to make the scam more “credible” they often take advantage of the name of well-known banking or financial institutions, although it has no connection with them.

Another way they act is through unofficial communication channels like phone, email or an app like WhatsApp.

In general, promises are based on great interest and excellent payment terms. They always appeal to the sense of urgency of the victims. And the goal is almost always the same.

Advance deposit for loan

Advance deposit for loan

Whatever the scam, at some point, they request an advance deposit and never intend to send the loan money. Therefore, leave immediately if an “institution” requests an advance deposit.

It is also important to be aware of the justifications that are used by scammers.

For example, it is often said that a guarantor must be paid for the loan to be released. This is not true because the loan is personal and only considers your financial situation. Even in cases where there is a guarantor, you will never have to pay for it.

Another justification is the IOF, which must be paid. As we saw above, this part is true, but in any loan, the value of the IOF is diluted between installments and need not be prepaid.

Commissioning is another form of the advance deposit that is illegal. This payment really exists and is the amount the intermediary receives for making the deal between bank and individual (the borrower). But it is always the bank or institution that makes the payment. Therefore, do not accept this justification.

There are also justifications that do not directly involve the loan. For example, certain scammers may argue that making the advance payment may increase the credit score. Only a very small number of companies control the score and prepayment does not exist to raise it.

If nothing goes well, they move on to more extreme measures. Some threaten to negate, which makes no sense, because how are you going to negate a customer who hasn’t even taken the loan yet?

If the customer doesn’t know this well, these threats can be frightening and sometimes work. So do not believe them and do not fall into traps. If you would like to learn more about the early loan deposit.

Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

What are the online loan options?

Sun Jan 12 , 2020
Online lending is a form in which the request is made via the Internet (and in some cases via telephone or ATMs) and the money […]