Short term personal loans, alternately known as payday loans are meant to fulfill your urgent cash needs. It becomes much easier to apply for these loans than it is for the traditional loans as you do not require undergoing a lengthy documentation process in order to qualify. They are best suited to meet emergencies or unforeseen expenses when you mandatorily need to shell out a huge amount of money. They are most frequently borrowed for meeting huge hospital bills, or else for paying off semester fees and other such reasons. However, these loans do come with their fair share of demerits as well. Most of the lenders conduct businesses online, whereby potential borrowers are required to fill up the application forms online. This is one of the reasons why borrowers need to be a little discreet. The practice of swindling borrowers by acquiring their bank details is rampant. So you should ensure that you’re not exactly looking at a possible window to scam before entering your details online.
Do not worry- not everyone providing an online payday loan is a fraudster. But some of them are. So, exercise due prudence before applying. There are several cases of borrowers being biked out of huge sums of money by swindlers.
How Can You be Trapped?
There are a number of fake sites put up by scamsters which look absolutely professional (i.e. it’s very difficult to figure out whether they are fake or not). Once they’re successful in tricking you into submitting their bank account details online, they can turn up several ways to debit money regularly from your account without your knowledge. So it’s important to be particularly careful about the way you provide your information to lenders. Here are some tips:
Read the terms and conditions very carefully. The terms and conditions applicable on short term loans are generally simple and easy to understand. However, if you come across a membership program or an application that includes very difficult statutes, it’s advisable that you do not follow it through. There might be one or two difficult clauses in the application form. But if most of them seem less apparent, there’s no need to proceed further.
Do not be complacent about providing your information while applying online. Think well before hitting that “Submit” button. In fact, it’s safer to establish complete authentication of the site before typing any personal information. There is a program called keystroke logging that can see and store everything that you have entered via typing- even if you have not clicked the “submit” button. The details stored through keystroke logging can also be used by fraudsters to commit identity theft or else illegally draw money from your account.
If you have already entered your details in some website then please make sure that you are tracking your bank statements on a regular basis. Please make sure that if you’re able to track any suspicious transaction you’re asking your bank to dispute it.
Follow these few effective steps to stay safe!