The 9 Most Common Personal Loan Traps and Scams to Avoid
Personal loans, especially short term ones, have earned a pretty grisly reputation. In truth, this reputation is built off of actual horrible experiences people have had with predatory lenders in the industry. But what carries just as much truth is the fact that not all personal loan companies are predatory.
Many personal loan companies exist to provide a genuinely useful service to their borrowers. If this wasn’t the case, then the personal loan industry would not have surged 17% last year to become valued at $138 billion overall. The fact is: people need solutions for their short term financial problems, and both legitimate and not-so-legitimate companies are out there to provide them financial options.
To ensure that you are not wrapped up in a personal loan trap, scam, or scheme, always perform extensive research and due diligence. Know the exact company you are getting a loan from, and get your terms in writing before you ever sign any sort of agreement.
At Your Own Funding, we want to help potential borrowers out by pairing them with lenders that offer up-front terms with no hidden fees, no unfair penalties, and an easy-to-use calculator that estimates their total amount paid for their loan. By doing all of these things, we hope that our customers will avoid looking to other so-called lenders that intend to trick them out of their hard-earned money.
To help you spot red flags the next time you are researching personal loans, keep an eye out for the nine most common personal loan scams, tricks, traps, and schemes below.
Frequently Asked Questions
Who is eligible to apply for a loan?
Everyone with a bank account may apply for a short term loan. You can use your funds for any purpose, and you are in complete control over the payment schedule of your loan.
How do I apply for a loan?
Apply today for a short term loan through Your Own Funding by filling out our online form, which takes less than five minutes to complete.
When will I receive my funds?
You will receive your short term loan in as little as the next business day.
When do I need to pay back my loan?
You are in complete control of when and how you pay back your loan. You may pay your loan in full after a couple of days, in installments on your scheduled payment dates, or any other way you choose. However, we advise you to pay your loan in full as soon as possible, since interest adds up daily. For the best results, we recommend paying back your loans in five days or less, if possible.
Can I cancel my loan?
Absolutely. There is a three day grace period for short term loans through Your Own Funding. If you cancel before your three days are up, we will withdraw the loan amount from your bank account automatically without interest or fees.
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