Borrowing money can be stressful. When you do so you are making a guarantee that you will pay the funds back according to the agreed-upon terms, or you face certain consequences. As if this wasn’t trying enough, things can be a lot worse if you borrow from a lender of ill repute and it ends up using your personal information.
Unless you’re borrowing money from a friend or relative, you will have to provide some details about yourself in order to take out a loan. Most likely, the lender will ask for your name, address, Social Security number and some of your financial information to prove that you are qualified to take out the loan. This is to be expected. The problem arises when the lender is not who it seems to be.
Lenders to be especially wary of are those who advertise solely over the Internet, specialize in payday or car title loans, or have ads posted places like fliers on light poles. No matter how badly you need cash now, you have to be very careful where you borrow it from. The safest places are national or community banks and credit unions. Credit unions often have better loan rates, but they also have barriers to membership, such as a certain town of residence.
A good practice to take before working with a lender you haven’t heard of is to check its rating with the Better Business Bureau. But be careful. A lot of the scammers will change the company name pretty frequently, so if a company isn’t listed at all, it should raise a red flag.
Your best bet in finding a lender if you’re having trouble is to speak with a trusted friend or family member; someone who has your best interests at heart. It’s best to prevent having your identity stolen instead of having to do damage control after it happens.
Also, if you borrow from a bad lender, you may not end up getting the money you need to pay your bills. You could end up with a check that bounces and be in even more financial trouble than you were before.