How to Avoid Small Personal Loans Scams

Many people are between a tight spot and annihilation when it comes to finances. On the one hand, you do not know where you are going to get the money. On the other hand, you have no way of stopping the ever-growing expenses and pressure to pay pending bills. Personal loans often come to the rescue. They allow you to get some credit for offsetting your costs until the time when revenues from goods sold go through or when your salary comes. Unfortunately, some criminals take advantage of the vulnerability and offer fake small personal loans. You must know ways of identifying such scam activities so that you do not become a victim. Here are considerations to make to identify small personal loans scam. They fail to ask about your payment history What kind of lender does not care about your ability to pay? This question should lead you to the first telling sign of a scam. When the deal is getting so sweet, refrain from going on. Instead, ask the question repeatedly until you have a good reason for ignoring your doubt.loan4

Often, these lenders know you are desperate for money, and they sweeten the deal by telling you that they will give you a small loan at a low interest and will not care much about your ability to pay. In reality, they want your repayment commitment, and they will use that to run amok with your money, credit reputation, and personal trust. They offer below market rates The rates offered by bad credit lenders are often higher than those of banks. If you are getting a loan offer that is better than that given to people who have high credit scores, yet you do not have good credit, then consider it a sign of a possible scam.

Lenders compete by changing terms of payment so that you can still get the money you need, but they will reduce the limitation to get it. Meanwhile, they take back their cash in the form of more extended repayment periods. You are probably getting into a scam when these facts do not appear clearly in the deal you are about to get into. They lack relevant licensing & registration You should be able to background-check the lender using available public tools such as the lending authority’s website. The lender must be reputable and be in business for a while with all the right documentation. You could also spend time verifying all provided details including registration for phone numbers, company numbers, business premises and so on. All lending companies need a physical presence even when they are offering online small loans.loan5

Therefore, you could verify their addresses and the status of their licensing before you trust them. They require payment for loan processing Lenders are there to give you money. If they require money upfront such as through a prepaid credit card, then they are frauds. They are likely to take your prepaid card and run away with all the money in it. The legitimate companies charge fees for loan processing. They also charge application fees. However, they deduct these charges from the loan amount advanced to you so that you have to pay nothing from the pocket.


These scam spotting tips help millions of people to save 1000s …

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Maintaining good credit for business

Starting a business with a loan gives the advantage of having a good amount of capital at the early start. It means more items and services are available to purchase and bring the business further forward from the competitors.

Personal vs. business credit

Before requesting a loan to a creditor, a business initiator should know the consequences of mixing personal credit with business credit. Doing so may have its benefits, but in the long run, separating both is wiser.

cadef45245A personal credit score gets evaluated through a person’s financial liability. In time payment of a mortgage, automobile loan, and credit card debt generate an excellent pattern of fiscal responsibility, and it can give a good credit score to get more credit later.

If you use personal credit score to get a business credit, all the charges get recorded to your account. Suppose your business goes well and generate stable income, the downside to mixing business with a personal loan is that you use up your credit limit. For example, with the same collateral, i.e., house, car, etc.; personal credit will get you a limited amount of money because the grantor assumes the loan is for personal use. Business loan, on the other hand, facilitates a capital that addresses the short-term and long-term goals of your company. The financial burden compensates with your business’ annual expense. Besides, by not mixing up personal credit with business credit, you can still have a forgiving credit score if the worst happens to your business.

Building a good business credit

ccc3424Proper personal credit affects your credibility to receive business credit. Here are some tips to avoid poor financial profile:

Make a credit card instead of debit card

A debit card is safe for you, but it does not prove anything of how you can manage your balance if given a debt. Credit card shows the otherwise, but only if you pay the charge before the deadline.

Limit your credit card

The ability to control the limit of your expense proves that you are financially responsible. Having a credit card with limit won’t allow you to purchase the over-limit goods.

Avoid unstable account

Do not open a new account with a hope that you can cover up your former bad financial record. Instead, pay your debt and recover your credit score.

Strategies to deal with unmanageable debt

DDD131The worst situation of starting a business with a loan is that you may get entangled with debts. There are few ways to resolve this problem through debt consolidation loan. But bear in mind that the purpose of the loan is to make the existing debts more possible to pay.

If your credit score is weak and you get rejected by banks, you can try getting your debt consolidation loan from services that provide loans for people with bad credit. The interest is higher than regular service since the risk for you is also high.

There is debt consolidation loan service that comes with low interest but normally requires your property to serve as the guarantee. Therefore, if your business loan is a high-risk loan, make sure you have more than one asset that can save you just in case a financial disaster happens.…

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Top mistakes to avoid this holiday season

The holiday season is just around you hate it or love it; it is coming. A lot of people fear financial misfortunes that happen to them every year. In this post, you will learn some serious financial mistakes you should avoid. The tips can help you enjoy the holiday without draining your bank.

During the holiday season, it is a great time to shop, and you will find it difficult to resist the great offers appearing from every corner. As much as we try, gifts for friends and family, the festival shopping, and Christmas vacation can be a great setback on your budget. If you avoid some financial errors, you can reduce your financial stress this particular season. The following are the financial mistakes to avoid this coming holiday season:

Financial mistakes

No financial plan

tgw3edfc7ywed8i2ik22If you do not utilize a financial plan, then there is a big risk that you are bound to fail miserably. For instance, do you know the right amount of money you are ready to spend? What can you afford? If you shop without a financial plan during the Christmas, then you are going to fail terribly. Having a financial plan is the first step implement when planning for holiday shopping.

No budget

This is likely to be a huge problem if you never budget for your expenses. Remember that you are not perfect and this is a slip-up that affects a lot of people each year. If you do not plan for it, then it is going to drain you financially. The following are the reasons:

  • You are likely to shop for Christmas using a credit card
  • Failure to pay bills to purchase Christmas presents

Thus, if you budget accordingly for Christmas in advance, you can stay away from mix-ups and have a stress-free Christmas.

Having unreal expectations

tg23erdf7vched8ri223Every person has unrealistic expectations of the Christmas holiday and what happens during that time. You may have seen advertisements, watched films, and you have seen how a perfect Christmas vacation should be. It is not a must that you purchase a brand new car to have a dream vacation. Just be reasonable with your expectations and presents. Remember that Christmas is not only about presents.

Shopping out of guilt

You may feel guilt because you could not afford to purchase everything you family requires. In fact, this may prompt overspending. Avoid promising your family what you cannot afford.…

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