There are many shell companies that take advantage of people's vulnerable situations. Here are some tips to help you determine whether a financial institution is trustworthy or not before investing your money in a scam.
In these cases, it's common for the money not to reach you because you make purchases that exceed your income. This is why some people resort to applying for credit or loans, but caution should be taken when applying for them. Several scammers take advantage of this situation.
If you've been offered immediate cash, with no conditions, no collateral, and told that it's not necessary to review your credit history to confirm whether you have outstanding debts, be careful. If you find yourself in this situation, be careful. You may be the victim of a scam by a shell company. For this reason, here are some tips to check if a lender is trustworthy.
What are the most common scams?
First of all, you should know that fraudulent creditors abuse people's urgency, and their most common tactics include the following:
- Immediate money, but with expensive and long-term terms, which makes it infinite to repay, generating even more debt.
- Stealing personal information in order to extort or impersonate someone.
- Theft of money through charges supposedly for administrative expenses.
How do you know if the lender is trustworthy?
There are elements that allow you to know whether the financial institution or company granting you credit is trustworthy.
1. Have a good image on the internet
Whenever you apply for a loan, it's important to research the lender; this can be done online. Use your default search engine to check the reputation of the company you're applying for money from. You can evaluate the company's track record and user reviews to determine whether it's reputable or not.
All financial institutions that grant loans must be registered with the Financial Services Providers Registry (SIPRES), as well as with the Securities and Exchange Commission (CVM).
It is recommended that you visit these institutions' websites to verify that you are registered. Another way to prove that they are trustworthy is to request information from Procon, which offers free advice.
2. Gives you amounts of money according to your budget
A reliable credit company is transparent with its customers; when you first contact one, they review your credit history and usually offer only the minimum. This ensures you can actually meet your payments, thus establishing a relationship that can increase your loan amounts and optimize payment terms for future loans.
3. They won't ask you to make any agency arrangements or payments before the loan
A reliable financial institution understands that you don't have the money, which is why you're applying for the loan. They will optimize the terms and conditions so you have it as quickly as possible, but they won't ask you to pay a fee before you get the loan.
Although there are management procedures, these will be agile and at no time should you be forced to pay fees, insurance, opening commissions, or any other type of deposit before your credit is approved or not.
Additionally, please note that if you provide any personal information to carry out any type of procedure, you will be provided with a reference or number for future clarification.
4. She will check your credit history, but will not ask for any private information.
Trusted financial institutions will ask for your permission to review your credit history with a credit bureau or credit circle, as this is part of the procedure. However, you should keep in mind that they only verify public information, so they should not ask you for passwords or passwords.
5. They provide and explain interest information as well as the amount of your payments.
When you apply for a loan or start a new loan, you should receive free financial counseling to help you with any questions you may have. They should also explain your repayment schedule, the frequency you choose to repay, and the corresponding amount, as well as the interest accrued.
If you consider these tips before applying for credit or a loan, you will avoid falling victim to scams. Always express any questions you may have about the process and ask for guidance.