Such type of lending as a payday loan is very convenient for most people who urgently need some amount of money for a short period of time. But not all consumers are aware of possible troubles and gaps.
Let’s see what kinds of drawbacks we may expect and how to avoid them applying for payday loans.
1. Online fraud. The first and the most common trick of scammers. After all, it is much easier to create some Internet page and lure potential clients than work honestly. By completing an online profile for a payday loan, you can easily get into an unpleasant situation: there are some mandatory fields for filling in with personal data and attaching scans of some important documents.
Fraudsters can use electronic forms to collect private info of customers and impose false credits. Getting to a web site with a feature to issues a micro credit online, a potential borrower is offered to go through the registration procedure and fill in the questionnaire and go through a card verification. Some time after sending the application, the client’s mobile phone receives a message with a refusal.
2. The loan approved but no money transfer. What’s the problem? In some days you receive a letter in which it is indicated that you a debtor of the MFO. Even if financial service does not stir any suspicion in you, and the personal data of the borrowers is under reliable protection, you can still get into an unpleasant situation.
As a rule, in this case, the agency immediately begins to charge interest for the use of seemingly borrowed money, despite the fact that, at best, they become available to the client only a few days after their official issuance. For example, there may be a failure in the payment transfer system, or the term of transferring crediting funds to a bank card can be up to three days. But sometimes the money issued this way goes nowhere, while the borrower theoretically still has to repay the debt, even though he never received a loan.
3. Additional expenses. When getting extra money online, we, as a rule, always pay attention to terms and interest rates. And naturally, we choose the most profitable ones. Here, too, you need to be extremely cautious, because the conditions described may differ significantly from what is in reality. They just have been written up in a positive way.
You do not receive a loan agreement, in which you put your signature, agreeing with all the conditions. Therefore, during registration, you may be promised a lower interest rate, a convenient schedule and no additional fees, and after receiving the money conditions may change, and you will pay several times more for using borrowed money or penalties etc.
What are the ways out? First of all, choose only MFO with a high reputation. Don’t be lazy to monitor feedbacks and users forums. Ask your friends about their experience. Make sure that you completely understand the whole procedure.
Before approval of any online document, think twice if its terms are OK for you. Don’t be shy to contact helpline which usually works around the clock. If you have any suspicion, it’s better to give up your financial plans.