The rise of the internet has made a lot of things easier. When you’re short on cash, one of the first things you’ll likely do is have a quick search for an online loan using your phone of any other device. The thing is, the internet is full of options, both good and bad. In this article, we’re highlighting 3 huge threats you need to look out for when you’re on the hunt for an online loan.

Here we go!

No physical address

Whenever you deal with anyone whether it’s online or not, you need to know where they’re based and that they are a real company. You’re bound to come across at least one or two online loan companies that claim to offer dependable services but don’t actually have a physical address. This should be one of the first things you look for when you enter any website.

At Cigno Loans, we know how important it is provide customers outstanding customer service, especially when they need it most. This is why we offer our contact details and actual address so clearly on our website. What do you think it actually means when an online business doesn’t show you any contact details or a real address? It means they don’t have a base, it probably isn’t a robust team of professionals, and they definitely won’t have a dedicated team that’s on hand to help as needed. Don’t take the risk! Avoid these types of companies completely.

Payment upfront

This is a really cheeky one! There’s such a thing as a secured credit card, which requires a deposit payment made upfront, but an upfront cost for a loan is something else entirely. Credit checks are an important part of modern living and it’s common for people now to buy too much and overspend especially using credit cards. Even if your credit score is really bad, you still should never need to pay upfront costs to receive a cash loan.

At Cigno, we definitely never ask customers to pay anything upfront and we don’t check credit history either. The most important thing we need to see is your most recent bank statements. If you do consider an online loan with some kind of deposit structure, make sure it’s from a market leading company that comes highly reviewed by a mix of the largest financial advice resources out there. Taking a deal like this from an unknown brand is far too risky to even consider.

Companies that guarantee approval

There’s no such thing as guaranteed approval for any financial product. Any credible company will have some form of assessment for you to complete. A finance product that guarantees approval is like a doctors that guarantees to fix any and all afflictions under the sun – it’s just not feasible.

Our criteria is very simple. We need to see that borrowers are able to make the repayments that’ll come with their loan amount, and the best way to do this is by checking your monthly income. It’s in our best interest to make sure you can afford the loan you’re applying for. If someone doesn’t need to see any proof of your ability to repay, it basically means they have no interest in making sure the loan is appropriate for you. There’s only really one phrase that accurately describes these kinds of offers – “click bait”.    

There you have it! These are the three biggest threats when looking for a loan online. Strapped for cash? It’s always a good idea to watch the pennies, but there are certain circumstances where buying cheap or going for the most attractive options isn’t necessarily the best answer. The online environment makes it super easy to apply for loans, but you still need to protect yourself from scams.

Our online application process is designed to be as easy to complete and forthcoming with information as possible. We don’t believe in hiding facts away and absolutely want you to be 100% confident that you understand all the agreement details before you decide to accept the loan.

We hope this quick list has helped! Think we’ve missed anything? Feel free to get in touch or leave your ideas in the comments!  

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Read more about online loans with instant approval here, or in our recent blog post: Where To Get Online Loans With Instant Approval In Australia

Disclaimer: Please be aware that Cigno Loans’ articles do not replace advice from an accountant or financial advisor. All information provided is intended to be used as a guide only, as it does not take into account your personal financial situation or needs. If you require assistance, it is recommended that you consult a licensed financial or tax advisor.