Everything you need to know before taking out a cash loan — Hometown Station | KHTS FM 98.1 & AM 1220 — Santa Clarita Radio


Taking out a cash loan is a common way to help cover major expenses. These expenses could be for a car, or you need to pay for school, and it could be to cover an advance on your paycheck so that you have the money you need.

Before you consider taking out a cash loan, there are some things you need to know. These elements include how to properly repay a loan and what type of scams to watch out for. Follow these tips to help you manage your loan successfully.

1. Incredibly high interest rates

The first sign of a possible fraudulent loan service is hidden and astronomical interest rates. These rates could be so high that it is almost impossible to repay the loan, so it is important to check everything before applying, especially the fine print. Avoid interest rates that are higher than the amount you can repay, which is a huge problem for many people looking for a loan. Interest rates should not exceed repayment capacity and scammers or unscrupulous lenders will use this to their advantage by hiding details or making them unclear.

2. Unusual payment methods

Asking for an unusual payment method like bank transfer or cryptocurrency is a sign that you are dealing with a scammer. While there are plenty of legitimate online options, there are also plenty that prey on people. Online lenders that are legitimate will often only request debit or credit payments and also provide secure payment. Paying in other unusual forms is a sign of difficulty that they will take your money without performing any service.

3. Complaints and bad reviews

Before you send money to any type of service, you want to do a little background check yourself. Read some reviews online to see what people are saying about this type of service. Bad complaints and reviews will give you a good idea of ​​what problems you might be facing regarding a specific lender service. Reading a tedious amount of reviews is little work to do when you consider you are entering into a formal contract regarding finances with someone, so be diligent and see what people are saying.

4. Inappropriate contracts

An incomplete or poorly formatted and structured contract could be disastrous for you. If you don’t know how designed the contract is for you, there may be no way to get your money back if you sign it and end up getting scammed. You may not have a law degree, but reading the contract carefully or having it checked by someone familiar with contracts can help you spot fraudulent wording and agreements.

5. No credit check

Not all lenders will require this, so it’s not a surefire sign that you’re dealing with bad loan service. Many lending services avoid credit checks because they only lend small amounts at a time, reducing any concerns they might have about someone taking out a loan. However, lenders are expected to want their customers to feel confident that they will be able to repay a loan, so a combination of no credit check and secured loan could be grounds for a forgiveness. question.

6. Initial costs

Paying anything before signing a contract looks like a scam because it’s usually a scam. Before agreeing to an agreement regarding interest rates or the repayment process, if you have to pay an upfront fee, they will likely hold your money. Not only are no fees preferred, but they help you know you’re not dealing with a sleazy lending service. If you see that there are costs before applying for the loan or signing a contract, then cut ties with them completely and save time.

7. Aggressive Tactics

The final tip to help you get a safe loan is to avoid lenders who use aggressive tactics. In your face, the advertising of time-limited offers or rates and the pushy attitude to get people to take out a loan are signs that a lender wants to get you to bite down fast and sign a contract as soon as possible. This saves you from realizing the offer might be fake before you’ve had a chance to read the details, so avoid lenders who present themselves as such.

Taking out a loan might be a good idea, but only if you’re smart about your finances and who you choose. These steps will help you make the right decision when looking for a loan for your needs without getting caught in a scam.

Do you have any current advice? Call us at (661) 298-1220 or email newstip@hometownstation.com. Don’t miss a thing. Get the latest KHTS Santa Clarita News alerts straight to your inbox. Report a typo or error, email Corrections@hometownstation.com

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