Never pay up-front loan fees, warns GBP Loans
With loan scams rising out of control, GBP Loans reveals the simple ways to avoid a loan scam.
Leading UK loans provider, GBP Loans, which runs www.guarantorloansdirect.com, says it’s common for those who are desperate for a loan and have a poor credit rating not to take the time to research the most reputable loan providers. Instead, they are inclined to jump at the chance when a lender offers them money at seemingly attractive rates despite upfront fees.
“The problem is that many of these fraudsters are asking for upfront payments, often saying that it represents their first instalment,” said the representative from www.guarantorloansdirect.com.
“However, when unsuspecting borrowers make that upfront payment, they never see their money again – and they also never see the loan.”
Many borrowers wrongly believe that paying an upfront fee will enhance their chances of obtaining credit. However the GBP Loans spokesperson says credit availability is exclusively defined by underwriting, which necessarily includes an affordability assessment.
“That’s why guarantor loans are becoming so popular,” he said. “People with bad credit benefit from guarantor loans, which provide loans on the basis that there is someone who can act as the guarantor. And of course, there are no upfront fees.”
According to the experts, there is one simple way to avoid being scammed: never pay any money upfront.
“If it sounds too good to be true, it probably is. So no matter how desperate you are for the money, you should never pay an advance fee. A reputable loan provider will never ask you for any upfront payment,” said the representative.
Another tip is for the borrower to find out as much as they can about the company before beginning an application. They should carry out vital checks, such as ensuring that they are a registered company and that they have a consumer credit licence as required by law.
“Check on money saving forums and review sites to see what others have to say,” said the spokesperson.
For more advice and information about loans and guarantor loans, visit www.guarantorloansdirect.com.
About GBP Loans
Founded in 2008, GBP Loans specializes in no fee guarantor loans. One of the UK’s biggest providers, GBP Loans focuses on providing access to no fee, no obligation loans for people with a poor credit history.
GBP Loans LTD
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