Online Charity Fundraising | Avoiding an Online Payday Loan Scam

Avoiding an Online Payday Loan Scam

Posted on August 11, 2010
Filed Under Credit, Loans and Finances | Leave a Comment

Getting a payday loan online is surely one way to get cash quick and easy. It might be quick and easy indeed, however it might not be as safe as it seems. The number of payday loan companies has been growing; some of these really are legitimate. The few others, sad to say, are designed to walk away with your money or steal your identity. If in any case you will be in need quick-fix cash for an unexpected bill, family emergencies, or urgent house fixes, you need not worry. You are still able to apply for a payday loan online without being tricked or scammed. You just need to take necessary precautions.


You basically start off by searching online and you’ll get a result list of many companies that offer payday loans. Well, these may not be scams however just don’t jump into any of these lenders. Payday loans can be costly, even when they’re legitimate. Take a look at the terms and the requirements, and choose those that seem to meet your needs. They will probably require you to have a minimum income, have a bank account, or be of minimum age. Think over if the length of the loan is what you want. Make sure you understood all details. By this point, you will have narrowed the search list to a few lenders.

Now, check every lender’s website. You need to make sure the company’s name, address, phone number or similar contact information is on their website. You can also try to type the company’s name into Google or another search engine together with the word “scam” or “rip-off” and check if you can find any protests or proof of a loan scam. Better yet, you can contact the Better Business Bureau and check if they have the company on their list.

Match up the loan rates of several companies that seem legitimate. It’s useful to compare Annual Percentage Rates (APRs) as well as the cost in dollars. If one lender’s offer is astonishingly cheaper than the rest, be vigilant Payday loans involve risk for loan companies, so they’re expected to be a bit expensive. A cheap payday loan may just be too good to be true, and is more likely a scam. Also, never pay any application fees to get a loan. This is the easiest way you can detect a scam. Online lenders know you do not have money, so they don’t expect you to be able to pay any amount beforehand.

Have you had any experience with payday loans?  Although it certainly isn’t wonderful needing one, did they provide any relief from your financial distress?  Please leave a comment with your thoughts on the topic.

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