Spotting a Legitimate Cash Advance Company
Many people become victims of seemingly legitimate cash advance companies. To avoid suffering a similar fate, you should know how to spot a legitimate from a scammer cash advances lender. It will surely save you from a lot of problems that dealing with a scammer offering cash advance loans can potentially cause you.
Qualities of Legitimate Cash Advance Companies
It is not easy to differentiate legitimate cash advance companies from scammers. These scammers are so good at disguising their intentions that they may often look more professional than even the legitimate cash advance companies. This is because many legitimate cash advance lenders do not make an effort to prove that they are legitimate. However, by knowing simple strategies, you can easily know whether a company is legitimate or not.
Legitimate cash advance companies have stiff requirements for borrowers. At the least, you must be employed or receiving a regular income from a business, social security or other means to qualify for cash advances. If the income is from employment, you must at least have $800 of net salary every month to qualify for the personal loans.
The borrower must also be at least 18 years old and a citizen of the country. An active checking or savings account is also necessary for sending the direct deposit.
There are also many legitimate cash advance companies that are more flexible on their basic requirements. Some may not require one to be a citizen of the country or to have a savings or checking account to receive cash advances.
To be sure, you should check the personal loans company’s name in the Better Business Bureau. This agency takes care of complaints against companies. If the company does not have cash advance loans complaints, then many will automatically assume that it is legitimate. However, this is not always the case, so it is not wise to solely rely on the number of complaints for legitimacy.
To ease your mind, check with your local business agency for the name of the payday loans company. The cash advances company's name and the industry must appear exactly as what you have seen it being labelled as.
Beware of Scam Cash Advance Lenders
You may already know what to look for to be sure that the payday loans lender that you are dealing with is legitimate, but you must also be aware of red flags. If any of these red flags are present, then you should find another cash advance loans lender.
The most obvious sign that the company is a scam is when it asks for the fee upfront before giving you the payday loan. This deal is not only unusual, but illegal. The company already knows that you are trying to get the payday loans because you do not have enough money, yet it will still charge you upfront. That is a clear sign that the company is a fraud.
Legitimate cash advance companies also have fees, but these fees are already included in the total amount that you have to repay at an agreed upon date.
Check the cash advances company’s address. Setting up a website to pose as a professional and legitimate cash advance company is easy. What is not easy is to have a real company address. Always verify the address to know if it actually exists. Some personal loans scammers will put any address on the website just to make them seem as though they are legitimate. Do not be deceived by the address and always take the time to recheck it.
Never deal with a company that charges ridiculous cash advances interest rates. A 15% interest rate on a cash advance or payday loan is common, but 30% is not. You should check how much the interest rate of other lenders is just to be sure. Better yet, check with your local laws if the interest rate is still lawfully acceptable.
Protect Yourself Against Fraud Cash Advance Companies
Scammers are certainly good at fooling anyone, especially those who desperately need to get cash advances or payday loans. No matter how badly you need the cash, do not leave yourself vulnerable to advance loans scammers. Prove to them that you are wiser than they think by arming yourself with knowledge of the industry.
One of the foolproof ways of making sure that you are dealing only with a legitimate cash advance company is by asking for referrals. Ask the people you personally trust if they know some legitimate cash advance companies. If none of the people you know can recommend a lender, then read forums online. Just make sure that the forum is reliable and that the suggestions are not marketing strategies. You can do that by checking and rechecking the suggested lender.
It is also better to trust your instinct than to give personal loans scammers a chance to benefit from you. If you feel uncomfortable when dealing with a lender, then there may be something wrong. This is the perfect time to trust your instinct, and you will be thankful you did.
Everybody needs extra money fast at some point for business or personal finances, but so do scammers. That is why they use the desperation of those in financial need to earn money. To avoid them, deal only with legitimate cash advance companies by using what you have learned above.