Do not provide your personal information and watch out for excessive start-up costs or collection agencies you call for debts already paid. It’s a new year and we have a new solution for you: don’t be fooled. Watch out for Cash Advance fraud this year. It can mean a lot of different things. So we give you a brief overview of the basic foam of cash advance fraud so you can recognize the warning signs.
Wait, what is an advance?
Before tackling prepayment fraud, let’s look at prepayment loans which can take many forms. At the narrowest, most precise, and most specific level, a prepayment loan is a cash loan that you take out with your credit card. It must be within your credit limit and often involves insignificant fees and no interest.
(Even with a cash advance, there is no grace period for interest, like a regular credit card purchase. “Negligible” interest accumulates the second during which the advance is made. .)
The term “advance payment” is widely used.
Abusive lenders who offer payday loans and title loans also use the term “prepayment” for the products they offer. These types of lenders do not tend to worry about your credit score and some do not even need proof of income. They usually charge exorbitant fees and interest rates that go far beyond what you would pay with a normal advance. Therefore, this could be considered the first type of “prepayment fraud”.
In order to avoid bad loans, the right warning signs should be looked for. You may not have an excellent credit rating, so you may not be eligible for a “traditional” loan. Okay, it’s still important not to settle for a lender.
While these predatory lenders may try to gain a sense of legitimacy by calling themselves “prepayment locations”, don’t be fooled. If they don’t care about your credit rating, income, or bank account, it means they don’t care whether you can pay them off or not. Chances are, the fees for not paying these loans on time are so high that it doesn’t matter if you never pay them off. The more you get stuck in a cycle of debt, the more money you will make.
Large upfront costs.
Another similar type of prepayment fraud charges you a high start-up fee to get the loan. You are trying to get money, why give them money? And just because they charge you exorbitant entry fees doesn’t mean you won’t be charged extra exorbitant fees later. If anything, it’s more likely. If you are a predatory lender, why shouldn’t you really get involved in this part?
Pay attention to who is on the other line.
You are at home and have dinner when you suddenly receive a call. Would it be one of your friends? NO Someone is calling to offer you advance credit. Do not do it. Hang up. However, you probably hang on to the phone providers, but now you can, knowing that they may have been trying to trick you.
If you have applied for a loan anywhere and are called for your application, this is fine. You may not want to be disturbed at dinner, but at least they are calling you for a reason. However, someone who calls you out of the blue and tries to offer you a loan without a credit check is not reliable.
Also, don’t trust people who contact you online.
Do you remember what we just said about the phone calls? All of this doubled (or tripled!) For email and other online offerings. I hope you are already very careful about where to enter your financial information online, but scammers are sure to try to take your money by promising “prepayment” or other suspicious offers.
Don’t worry, you can certainly find a good loan online, but you should do your homework with all the lenders and read their reviews to make sure they don’t use them. We have already discussed what should be considered several times. What if someone tries to email you a prepayment? Do not click on any of the links, do not even open the message. You can try to hack your computer through a process called “phishing”
