How can I detect bad credit offers from credit providers?
For prospective customers, a wealth of different credit options opens up. In fact, there is a risk of opting for a dubious loan offer. This can result in a borrower closing a loan on overpriced terms or making payments in reliance on the intended loan agreement, without ever being able to post a receipt of the loan amount. To avoid these negative consequences, every loan seeker should check the considered credit options for their seriousness. There are a few features that indicate dubious credit offers:
Loans without credit bureau – beware rip-off!
The collection of credit bureau information is used in the credit market to analyze the creditworthiness of potential borrowers. Loans without a credit bureau therefore seem to be the ideal financing option for those with suboptimal credit ratings. In the market segment of loans without credit bureau, however, the frequency of doubtful offers is particularly high.
Promising loan offerings that promise low interest rates, favorable credit conditions and a high probability of success even with bad credit often hide fraudulent business practices. Credits advertised as cost-effective can turn out to be mere bogus offers or lock-offers, which are either not feasible at all or can only be implemented if the borrower undertakes to pay usurious interest. Such offers can be found if you have searched the Internet for a loan shark.
Waiver of proof of income
In those cases in which a loan without credit bureau is made possible, reputable credit providers as well as a traditional loan require a regulated income situation as a basic condition for the conclusion of the contract.
If loans are promised without proof of income and / or collateral, these are questionable offers. Because of the risk of default, no lender is prepared to pay off a loan amount without first obtaining proof of the creditworthiness of the debtor.
Depending on the nature of the income, proof of salary, payslip, pensions, income tax receipts or receipts / receipts invoices in connection with current bank statements are required for each loan outside the family and circle of friends.
Expensive fees before receiving the loan
An unmistakable sign of lack of respectability results from the levying of fees before receiving the loan (credit with pre-financing). This concerns, for example, the clearing of a provision of credit agencies, which, from a legal point of view, can only be made as a performance-related remuneration after the loan has been paid out to the borrower, but not in advance of the brokerage activity.
Dubious credit agencies often charge large amounts for various expenses in addition to the commission, which are practically incomprehensible. In addition, borrowers should exclude those providers as contracting parties, which offer a comparative comparison of different loan conditions and a processing of credit requests only for a fee. The same applies in the case of the fee-based sending of the loan agreement documents by cash on delivery to the borrower.
Expensive consulting services and insufficient contact options
Paid home visits eg from a so-called loan shark with borrowers are not part of the normal course of a loan settlement. Nor is it appropriate to make the granting of the loan conditional upon the signing of costly insurance, club membership and consulting assignments by the borrower.
If a borrower has to use expensive service hotlines when asking the credit intermediary, the loan offer has a dubious connotation. Credit providers who provide their credit customers on the homepage no or only inadequate contact information, should generally be avoided.
If there is no verifiable information about a domicile in Germany and an entry of the provider in the commercial register is missing, it is absolutely essential to conclude a contract.
Summary – you should be careful about the following loan offers:
- The lender requires pre-charge
- The lender demands additional insurance coverage
- The loan provider does not require proof of income and / or collateral
- Credit intermediary would like to make a paid home visit with you
- Read the fine print and pay attention to hidden costs
- Do not fall for the lock offers in loan comparisons, because for the amount of the loan interest, the creditworthiness of the loan applicant is usually decisive
To warn other borrowers about dubious loan offers, share your experience with the scams of credit scammers and scammers
Find cheap reputable credit. Simply start a credit comparison online:
Where can I find serious donors?
If you are in dire straits and have been looking for an honest, reliable private lender, it is best to turn to lending platforms where money is given directly from private to individual. For platforms such as auxmoney, you can submit a loan request for a maximum of $ 50,000. Private money lenders from Berlin, Hamburg, Hanover, Cologne, Munich, Frankfurt am Main, Nuremberg and many other German cities, lend in these portals credit from private to private.