Applying for a loan has never been easier. Obtaining a loan included an in-person visit with a lender to discuss your options and complete a loan application. Today, you can submit an application online from the comfort of your own home, giving you a lot more choice and freedom.
However, as more and more people apply for loans There is growing concern online about protecting your identity from cybercriminals and hackers. Since lenders obtain sensitive information digitally, through a website, or through email, some criminals will try to view email web applications to unlawfully misuse a requestor’s information. Read on to find out some of the things you need to do to make sure your app isn’t giving you trouble.
Use a reputable lender
Choose only known and reputable lenders to ensure the safety of your personal and financial information. Of course, that doesn’t mean you shouldn’t use a bank or other lender just because you’ve never heard of them, but if so, be sure to research them before passing on any information. .
Some cybercriminals set up bogus loan websites to get your personal information. So, before applying for a loan, make sure that your loan officer or broker is registered with the appropriate professional bodies, as this will give you additional protection and peace of mind. UK credit broker Cashlady.com Advisor: âIf you are applying for a loan online, be sure to check the website for an FCA registration number (usually at the bottom of the website). You must then verify that the number matches the record on the FCA registry. FCA regulated lenders and brokers agree to treat clients fairly, and dealing with FCA licensed companies also means you have a governing body to talk to if you are unhappy with your service.
Use a secure network to apply
Apart from finding a reputable loan company or using a well-known bank, it is also essential to submit an application online on a secure network. Make sure your home network is password protected so that criminals cannot access it. This way, although you still have to send your sensitive information online, it is much safer – it will also be encrypted, so even if a hacker could gain access to your system, they would not be able to understand the information. . they were stealing, and that will be essentially unnecessary.
Applying for a loan on a public network is never a good idea. Since many of these networks are insecure, a cybercriminal can easily access and steal your information whenever they want.
Be careful with emails
While email is a quick and easy way to interact with your loan company, and although many email providers such as Google go out of their way to provide protection, it’s not necessarily the best choice. safer, so be careful. Many hackers send thousands of phishing attacks in the form of emails, hoping that a small number of people would mistake them for legitimate emails and take action. Spam emails usually ask victims to click on a link to a dangerous website to fill out a form that sends all of their personal information to the criminal.
Because these fake websites are supposed to look exactly like real banking websites, what you think is a legitimate email request from your loan officer may actually be fraud. To be on the safe side, always verify the sender’s email address before answering questions via email. If you don’t recognize the email, or if the message looks suspicious, call your bank to verify.
The upfront costs?
Reputable lenders don’t charge an upfront fee, so if you see a website or loan company asking you to pay them to give you a loan, that’s not correct. All costs associated with your loan, such as interest, must be included in the initial amount and will be repaid over time; you’ll never have to pay anything until you get your money, and your first loan payment leaves your bank account.
Thieves often resort to the up-front scam in which they trick you into paying a fee to complete your request. There are legal loans that require application fees, but they are usually large loans, such as home loans (you may need to pay for a credit check, appraisal, etc.), and these fees are explicitly stated. explained, often on official disclosure documents. If you are getting a personal or car loan, you should avoid paying upfront fees. If you end up paying a fee, the “lender” will know that you are desperate for money, and they will likely keep asking for more and more money and never give you the loan you asked for.
Western Union Payments
If you are applying for a loan, you are trying to get funds, and as we mentioned above, that shouldn’t mean having to pay anything. Again, some loans have actual fees, but you can usually pay with a check or credit card, or deduct the fees from your loan amount.
It is almost certainly a scam if lenders demand money by wire transfer or other fast payment methods. This could include requesting money through Western Union, for example. When you transfer money like this it’s gone for good and it’s hard to know who got it. A lender who accepts checks, on the other hand, needs a bank account to deposit those checks (which law enforcement can easily find), and credit card processors quickly shut down vendors who receive a high number. of complaints.
In your search for lending sites on the Internet, you will come across companies that unequivocally state that they do not lend money. The internet is full of lead-generating sites that sell your information to lenders. Lead generators are great at marketing; you need a loan, and they can help you find someone who is ready to lend you. Several large websites do this and provide a useful service (while also making money on every loan they arrange), but more shady transactions will create problems.
When giving information to sites that claim to be looking for the best loan for you, be careful; they can simply sell your contact information to a multitude of predatory lenders (or identity thieves) who will constantly try to extort money from you or use your information to create false identities and borrow money from you. name.