8 Signs of an online credit scam

Credit Card Scams: How to Recognize & Avoid Credit Fraud
  1. Too good credit terms

When the deal is too good, think twice. You may or may not have heard this phrase before.

Many online credit scams come from people presenting too good terms. 

Terms such as; 0% interest rate. From the look of it, it is just questionable. Credit lenders have bills to pay, and they rely on interest for profit. 

0% or extremely low-interest rate is a red flag. Another term that may be sound off with online scammers is they give no duration of the credit. 

Traditional money lenders like banks give a certain period, where if your failure to pay your amount by then, they will forfeit the security/collateral pay. 

It always takes time to secure credit traditionally because of the long background check that has to be conducted. 

This is not to say that you cannot find credit companies that can process your request fast. 

When you have medical emergencies or matters that need urgent finances, you can find credit lenders with fast loan access.  Nonetheless, exercise extra care.

  1. No reviews 

The one true way to confirm whether a credit company performs what they claim to is by reading reviews. 

Reviews also may be altered with especially the ones provided by the company itself. This is why you may have to read the reviews from independent websites like Britainreviews.com,

Of course, there are genuine online financial help companies with good motives but with no service reviews. How do you tell them apart? This is where you have to do some homework. 

All legitimate credit companies must be registered with the Prudential Regulation Authority. To be registered, due diligence must have been conducted on them certain that they can proceed with business. 

Go to the national database and check whether they are indeed incorporated as a business. 

If it so happens that challenges arise, you will at least stand a chance to process a legal claim against the company.

  1. Non disclosed fees

You should know the amount the company intends to deduct as their fees. It is not a good business contract when one party cannot fully disclose what they are getting from the contract. 

More often than not, businesses that fail to disclose fees, intend to benefit more. They may claim more than a reasonable percentage of fees.

  1. No credit score requirements 

Placing no credit history requirements on a credit service may mean two things.

One, the company is by all means not trying to scam their customers and it is just but a business strategy to get more customers. Two, the lender is probably a scammer. 

Now, how can you tell whether the no credit requirement is genuine? Look at other aspects of the deal. 

Are there reviews about the company? Are their terms reasonable? Is there proof of their incorporation as a finance company? How many people do you know that have used their services before?

By answering this question you will have painted a picture of whether or not they are what they claim to be.

  1. No limited amount 

Credit companies fall into many categories. One of the scales to determine which category a credit company falls is to look at the amount limit. 

Microfinance credit companies issue loans that can be from 100 to about 5000. Banks and other credit companies issue loans that are way over 1000000. 

Questions arise where there are no financial limitations. 

If someone can issue you a loan of up to £100,000 with no credit score requirements or for the least, to confirm your accounts and reasons for the loan request, it is most certainly a big scam

  1. Fewer security features 

Genuine money lenders are concerned about their security features because they are the most targeted. 

They have heavy site security features, phone applications have high-security features like limitations on wifi connectivity and such. 

On the other hand, online scammers are only good at making themselves visible. Unprotected servers and websites among others.

You too should ensure that all your online accounts are secure. Use password manages and two-factor authentication for your accounts.

  1. No physical address 

When you are guiding yourself from fake online credit companies, care to look at their physical address. 

A physical address is a compulsory requirement for all banking and finance companies, without one, a company cannot be granted a licence to operate. 

When you are dealing with a credit company that has no proof of address, chances are that it is fake.

  1. Suspicious emails and notifications

Lastly, beware of credit companies that bombard you with notifications and emails about your credit inquiry. 

Such emails come filled with grammatical errors and they pop up almost every day.