Today we can find personal loan ads even at the bus stop, literally. These offers usually promise very high amounts, approvals in less than a day and, above all, procedures without reviewing the credit bureau. At first glance, these loans are a great solution, especially in those cases that require immediate attention. But, be very careful. Actually, these ads may just be a hook to let you down, or worse, the path to further debt. Learn about the risks of applying for personal loans without a credit bureau.
Identity Theft
Although it is necessary to present an official identification to carry out many procedures, this does not mean that you must deliver your personal documents to anyone. Be sure to verify the identity of the company and its official registration before providing personal information. Failure to do so can result in identity theft and financial or even legal problems.
Fraud
Scammers know that people looking for a loan without a bureau have a need (and in many cases it is urgent), so they take advantage of the circumstances to ask them for money in advance. Unfortunately, in these cases people never receive their loan and, in addition, they lose the money they deposited. Always wary of loans that require a security deposit.
Garnishment
One of the most common informal means of financing is lenders. These people are dedicated to offering loans on their own terms: they decide the interest rate, the payment terms and the surcharges for defaults. These characteristics, together with the lack of knowledge of the contracts , facilitate the collection of debts through liens.
Controversies
The main problem with unchecked credit bureau loans offered by informal media has to do with the lack of regulation of these businesses. They are generally people who work without some kind of permission or license from the Condusef, so if any controversy arises (for example, with the terms or the interest rate), the client cannot resort to an instance public to defend it
Increased indebtedness
Finally, another risk of applying for personal loans without a bureau is over-indebtedness. This type of financing does not analyze the financial situation of its clients, therefore it offers high amounts at an interest rate much higher than the market rate. This invariably leads your clients into a spiral of debt.
