Will you apply for a loan? 5 tips to avoid falling into a fraud

On these dates it is common that the money does not reach us, because we make purchases that exceed our income. That is why some people resort to applying for a credit or loan, however, precautions must be taken when requesting it. There are several scammers who take advantage of the situation.

In case they have offered to give you the money immediately, without conditions, without asking for an endorsement and they told you that it is not required to review your credit bureau to confirm that you have past due debts. If you find yourself in this circumstance, be careful, you may be the victim of a scam by a shell company. For this reason, here are some tips for you to verify if a lender is trustworthy.

A trustworthy company will not ask you for a payment before you have the loan. Photo: Pixabay

What are the most frequent scams?

First of all, you should know that fraudulent lenders abuse people’s urgency, among their most common tactics are the following:

Immediate money, but under expensive conditions and in the long term, which results in it being endless to pay, thus generating even more debt. Theft of personal information, with the purpose of extorting or impersonating the identity. Theft of money through charges supposedly for administration expenses.

How do you know if the lender is trustworthy?

There are elements that allow you to know if the financial institution or the company that gives you the credit is reliable.

1. Has a good image on the internet

Whenever you go to apply for a loan it is important that you inform yourself about the creditor, this can be done through the internet. In your default search engine, check the reputation of the company where you are going to ask for the money. There you can assess the background of the entity and the comments of users about it, in this way you can evaluate if it is good or there is something suspicious.

All financial entities that provide loans must be registered with the Registry of Financial Service Providers (SIPRES) that you can check in THIS LINK to find out if it is registered, as well as in the National Banking and Securities Commission (CNBV).

It is recommended that you enter the websites of these institutions to verify that it is registered, another way to corroborate that it is reliable is by requesting the information from Condusef, which provides advice at no cost.

2. It gives you sums of money according to your budget

A trustworthy lending company is transparent with its clients, when you have contact with one for the first time, they will review your credit history and usually offer only the minimum. In this way, it is ensured that you will really be able to meet your payments, thus they will start a relationship with you in order to increase the amounts and optimize the payment conditions in future loans.

3. They will not ask you to make agreements or make agency payments before the loan

A financial institution that is reliable understands that you do not have money since that is why you request the loan, so it will optimize the conditions so that you have it as soon as possible, but it will not ask you to make a fee before you obtain the resource.

Although there are management procedures, but these will be agile and at no time should they condition you to make the payment of fees, insurance or commission for opening or other type of deposit before your credit is approved or not.

Also, consider that if you provide any personal information to carry out any type of procedure, you should be given a reference or number for future clarification.

4. It will check your credit history but will not ask you for any private information

The financial entities that are trustworthy, will request your authorization to review your credit history in the bureau or credit circle, since it is part of the process but you must bear in mind that they only corroborate public information, so they should not ask you for keys or passwords.

5. They provide and explain the date information as well as the amount of your payments

When obtaining a loan or starting with a credit, you must be given financial advice at no cost to guide you in case of any doubt, they must also explain how your payments will be, as well as the frequency with which you chose to pay and the corresponding amount, as well as the interests that are generated.

If you consider these tips before applying for your credit or loan, you will avoid falling into fraud, always express your doubts about the process of the procedure and ask for advice.

For you to continue being informed about this and other related topics, we suggest you visit our Credits section.