As a Filipino working abroad, you may find yourself in need of an OFW loan. However, getting a reliable money lender can be quite challenging.
However, it’s important to determine whether each lender you encounter is genuinely there to assist you or if they are trying to take advantage of you. Usually, loan scammers prey on vulnerability and urgency, making it crucial to recognize red flags before falling into their trap.
Therefore, this post will dive into telltale signs that scream, “This might be a scam.”
Characteristics of OFW Loan Scammers
1. They Guarantee Approval, No Matter the Price
Walking into an office and a lender says, “You are approved,” before even looking at your credit score or asking about your financial history might sound like a dream come true, but that’s a red flag.
Usually, a valid lender will evaluate your creditworthiness. They will assess your ability to repay the OFW loan. Therefore, when a loan approval is given without verification as a surety for everyone, it should ring a warning bell of an imminent scam.
2. They request upfront fees
Stop immediately if a lender asks you to pay an application fee, insurance, or any other fee before presenting you with a loan agreement.
Usually, legitimate lenders deduct the fee from the amount borrowed or ask for it after the OFW loan has been disbursed.
On the other hand, con artists love upfront payments because they can evaporate with your money and not return a single cent to you.
3. Their Website or Business Feels ‘Off’
If the lender’s website content is full of typos, is just not professional, or vital details like a physical address and contact numbers are missing, that is a warning bell.
Even worse, if you can’t find their business name inside the official directories and reviews, it may be a red flag that the lender you are about to deal with is a scammer.
4. They Push You for Speedy Action
The other factors scammers rely on include your sense of urgency. They will use things like, “This is the only day this offer is good” or “Sign up now before rates increase!” They do this in an idea to try and get you to act with less contemplation.
A licensed lender gives one time to review terms, ask questions, and make a meaningful, educated decision about the loan deal. If you get that feeling that you are being hurried, then walk away.
5. They Are Not Appropriately Licensed
Each valid lender must comply with specific regulations and licensing laws.
On the other hand, a scammer may even avoid questions that give unclear answers concerning their licensing or even sometimes say that a simple license is not required.
Therefore, do your homework through the regulatory authority; it’s a huge warning sign if they are not licensed.
6. They Ask For Strange Forms Of Payment
A lender asking you to pay in funny ways, such as using gift cards, cryptocurrency, or wiring money, should raise your eyebrows. Usually, most such transactions are untraceable or irreversible besides being classic scammers’ love.
Genuine lenders use conventional payment methods, such as bank transfers or checks.
7. Too Good to Be True
Too good-to-be-true offers such as ridiculously low interest, no collateral, and no questions asked are signs that you are dealing with a scammer.
Real loans have reasonable terms that work with the market and your credit profile. Therefore, for everything else, remember that it seems too good to be accurate; probably, it’s a scam.
Conclusion
Working abroad as an OFW takes a lot of sacrifices, and the last thing you would imagine is getting scammed of your hard-earned finances.
Therefore, even when you are financially desperate and looking for a way out by looking for OFW loans, always take your time, do your homework, ask questions, and don’t rush to enter an agreement. An honest lender will not rush you but respects your need for clarity and time. At Supreme Money Lending Corp, we guarantee legitimacy in our operations. Therefore, you can contact us today for a maid loan or for general financial advice.