Tag Archives: personal loans

Personal Lending in the UK Rises Four Times Faster Than Wages

Personal Lending in the UK Rises Four Times Faster Than Wages

According to the latest BBC News research, the total value of pending personal loans in the UK has increased four times faster than income/wages. The current value of outstanding loans stood at £37 billion in the financial year 2016-2017 according to recent UK Finance data.

The CAP (Christians Against Poverty) attests this fact by saying that January 2018 was the busiest month ever for individuals seeking debt advice. This is despite the fact that the FCA claims a majority of the loans taken in the recent past went to individuals who could afford to repay.

UK Finance statistics

UK Finance covers 10 of the largest building societies and banks in the UK. Their statistics indicate a 25% since in the value of outstanding loans since 2013-2014. However, wages have grown by just 6.5% over the same period according to data from the ONS (Office for National Statistics). UK households accumulated a record £37 billion in outstanding personal loans in 2017 alone which represents a £7 billion increase from 2014.

In Northern Ireland alone, outstanding personal loan debt stands at approximately £1 billion. Most British households say they have been forced to borrow loans because of the rising cost of living yet wages have stagnated.

UK households are borrowing to survive

According to a recent BBC News interview, Mel Reynolds, a Batley, West Yorkshire resident and mother of two says ”I borrow money to pay for food.” According to Reynolds, her salary is only able to cater for her mortgage and utility bills. The situation has been so bad for Reynolds she has had to choose between fueling her car and feeding her two boys. This is despite the fact that Ms. Reynolds works full time. She has accumulated approximately £28,000 in debt through bank and credit card loans from 2007 to 2015.

The CAP which has been helping Ms. Reynolds says January was the busiest month ever for individuals seeking help with their loan/debt problems. The CAP was started in 1996.

According to Daniel Kelly, the Creditor Engagement Manager at the charity, there are an estimated 8 million people in the UK worrying on a day-to-day basis how they will pay their bills. What’s more is; January 2018 was the busiest year ever for the CAP debt call centre.

The outstanding loan problem could be bigger given that the latest data from the UK Finance covers personal loans issued by building societies and banks only. Credit card loans, student loans, and payday loans have been excluded from the latest UK Finance data.

BBC England analysis

BBC England’s Data Unit has dived deeper to offer a more in-depth analysis of the debt problem in the UK. For instance, BBC England Data Unit reveals that the current outstanding personal loan debt translates to £1,384 per UK household in 2016-2017. The data analysis also reveals that the debt problem is most prevalent in areas which have experienced the lowest increase in average pay among full-time workers. BBC England data analysis also reveals that St Albans is the worst hit with an unsecured lending increase of 43%.

It gets worse. UK households have over £1.5 trillion in mortgage debt which could pose serious economic risks in case of a sharp increase in personal loan debt.

Welfare organisations’ take

Many welfare organizations in the UK have expressed concerns about the possibility of many people ever being unable to repay their outstanding debt. One such organization is Leeds-based charity, Money Buddies. According to Sylvia Simpson from Money Buddies, the charity has many clients who have confessed to struggling with debt but still willing to take more debt if banks are willing to lend more. This highlights why the FCA has intensified its efforts to crack down on irresponsible lenders.

The FCA’s take

According to Chris Woolard, the Director of Strategy & Competition at the FCA, the current personal debt levels have hit the long-term average triggering a concern for vulnerable borrowers who could be exploited further by high-cost lenders. Woolard, however, states that most lenders are following the rules. The FCA is also taking stringent action when lending rules are broken.

The UK Finance is also committed to responsible lending. This is according to sentiments expressed by one of the association’s spokespersons. ”UK Finance undertakes thorough risk assessment before approving credit applications. The association also advises struggling customers to talk to their lenders immediately.” The association also goes further and states that majority of its borrowers are able to meet their loan repayment obligations without problems.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Consumer Finance Up 3% in September 2017

Consumer Finance Up 3% in September 2017

The latest on consumer finance in the UK According to the latest figures by the FLA (Finance & Leasing Association), consumer finance growth is up by 3 percent in September 2017 compared to the same period last year. Q3 2017 has seen a new business growth of 6% compared to Q3 2016.In September 2017, new business generated by credit cards and personal loans grew by 3% compared to September 2016. Online credit and retail store new business increased by 6% over the same period. Second charge mortgage value (new business) also grew at a similar pace in September 2017. However, new business volumes dropped by 2 percent over the same period.

According to Geraldine Kilkelly, Chief Economist and Head of Research at the FLA, new consumer credit is expected to increase by 3.3% in 2017, a significant drop from the 6.3% growth in 2016. This forecast comes in the wake of subdued consumer confidence and the slowest business growth since April. Consumer confidenceAccording to the most recent Lloyds Bank spending power report, consumer confidence is at the lowest level in 2.5 years (since April 2015). Consumer confidence is a measure of how consumers feel about their current as well as the future state of their finances and economic conditions as a whole.

In the IPSOS MORI monthly survey involving 2000+ UK bank account holders, 61% felt positive about their finances in October, a 3pp drop from 64% the previous month. Consumer confidence is a vital consumer finance metric. The measure is at its lowest level in 30 months. Statistics indicate that there is a huge gap between different age groups. Majority (78%) of individuals over 65 years old are positive about their financial situation compared to 60% of individuals between ages 18 and 24 years and 61% of individuals aged between ages 25 and 34 years. The latest statistics also show that women are less positive than men in regards to consumer confidence, i.e., 58% against 64%. Although we are approaching the festive season which is characterised by overly positive consumer finance metrics (increased borrowing and spending), 38% of individuals in the Ipsos MORI survey are worried about personal spending during Christmas. 13% of individuals in the survey are planning to cut back on typical spending to cater for festive spending.

The number of UK households with comfortable financial situations dropped in October 2017 by two percentage points to 60%. The situation is worse among households with children aged 18 and below. Lloyds Bank customer account data analysis shows that people are spending more on essentials. The latest statistics show a 2% growth in essential consumer spending in October. This represents a 17-month consecutive growth in essential spending with food accounting for approximately 40% of all essential spending.

Fuel spending is also significant according to the Lloyds Bank data analysis with an increase of approximately 5% which represents a 14-month continuous growth. Electricity and gas spending increased by 2.5% from 1% last month. Energy spending has been rising for the 3rd consecutive month after enjoying a continuous decline for three years. According to Robin Bulloch, Lloyds Bank Managing Director, although most people are positive about their finances, there was a significant drop in overall consumer confidence in September 2017. Bulloch attributes the drop to factors like inflation. Since inflation is at a 5-year high, Bulloch states that consumers, more so millennials, have begun to feel the pinch more than everyone else. He doesn’t find it surprising that the UK government reached out more to millennials in this week’s budget. As inflation rises and wages stagnate, UK consumers are being forced to rely on loans. This explains why there are more and more people taking out payday loans, credit cards and other forms of short term loans today. Consumer finance growth isn’t necessarily a good thing if consumer confidence remains low especially among the population that is supposed to drive the economy forward.

Although the budget has some interesting perks that will see minimum wage workers earn more and households save more in taxes, critics argue that the budget perks don’t mean much when you consider inflation. As the cost of essential increases, it is advisable to spend wisely during this festive season. You should stick to affordable goods during this season to avoid starting 2018 in debt. Avoid loans at all cost except for emergencies. Managing your finances is critical during this period since loans are easily accessible now more than ever before and we are approaching a time of the year characterized by overspending.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

What Questions Should You Ask Before Taking A Loan?

What Questions Should You Ask Before Taking A Loan?

Many questions linger in the minds of borrowers before they take loans. When you consider the implications of taking a loan and being unable to repay it, it’s important for every borrower to be properly informed from the onset. In case you are wondering what you should ask yourself and your bank before you take a loan, here are important questions to consider.

1. Do I really need a loan?

It’s easy to get a loan nowadays, so it’s crucial for you to ask yourself if you really need one. Banks advertise loans all the time. However, you need a better reason to take a loan. If you don’t have a reason of your own, let your bank give you a good reason. Some banks have business loan programs meant to provide people with business loans as well as the expertise needed to set up prosperous businesses. If you’ve always wanted to start your own business, you can consider such a program.

2. What type of loan is the best for me?

You should ask yourself and your banker this question before you decide to take a loan. This question is important since there are many types of loans ideal for different purposes. For instance, a payday loan is perfect for emergency expenses. However, it’s not handy for starting a business. Personal loans also have notable benefits over business loans and vice versa. Depending on your reasons for taking a loan, your banker should be best suited to suggest the best type of loan for you. Nevertheless, you should be able to assess if the type of loan you are about to take is actually the best type of loan for you. You can assess things like interest rate charges among other repayment requirements i.e. the term of the loan to decide if the loan in question will work for you.

3. What’s the total cost of the loan?

This is another crucial loan question to ask yourself and your banker. It’s worth noting that loans are usually structured in terms that can be difficult to understand. Some lenders actually do this on purpose. The chances of a loan being more expensive than you actually think are very high so, make sure you find out the actual cost. You should do your own calculations if you have to or ask your banker to do the same on your behalf. This question is very important since the actual cost of most loans is usually hidden in confusing financial jargon. Don’t take chances. Know the total cost of any loan beforehand otherwise, you won’t be able to make an informed decision.

4. What happens when I repay early?

It’s also crucial to find out if there are any penalties if you repay your loan early. Most lenders don’t want you to repay your loan early since they earn most of their money in the form of interest income. It’s usually in the best interest of banks for borrowers to service the loan for the entire term. To discourage early repayment, banks usually have penalties. Although most banks disclose these penalties, some may hide them in the fine print. It’s crucial to find out if there are such penalties and when they apply if you are interested in repaying your loan faster.

5. What documents do I need to provide?

To get your loan amount in record time, you need to ask yourself and your bank what documents you need to provide to qualify for the loan in question. Business loans require business documents ranging from licenses to financial reports. Personal loans require bank statements, pay slip/income information, etc. Since different lenders tend to have different requirements, find out the type of documents you need in advance and provide them with your application to reduce the time it takes for your bank to process your loan.

Summary

You shouldn’t take a loan because everyone else is taking one. You shouldn’t assume the total cost of your loan either or take any loan that comes your way. It’s also important to know all the requirements for qualifying beforehand to avoid wasting time. Loans come with many requirements, risks, and costs that you should be aware of before committing yourself.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Borrowing for a holiday: Is It A Good Idea?

Borrowing for a holiday: Is It A Good Idea?

Let’s face it! It doesn’t sound too smart taking out a loan to finance a holiday right? Well, yes but there’s a twist to it. You’ve probably heard that it’s a bad idea to borrow to finance a liability. Well, a holiday can be an asset or a liability depending on who you ask. So, should you really borrow to pay for a holiday? If you want to take out a personal loan or any other kind of short term or long term loan to finance your holiday, here’s what you need to know first.

1. There are situations that warrant borrowing for a holiday

First and foremost, it’s important to note that it’s not always a bad idea to take out a loan to finance a holiday. Having quality time during the holidays with your family is very important so there’s no problem borrowing some money especially if you can afford it. Furthermore, you don’t need to be broke to take out a loan. You may be taking out a loan because you don’t have access to your money at the moment. For instance, you may have some investments that you don’t want to liquidate because the returns aren’t favorable at the moment. In such a case, a loan is justified. The consequences of failing to spend quality time with your family is worse than having to borrow a small loan to fund your holiday expenses. If you can pay for the loan comfortably, go ahead.

2. You need to plan in advance (know how much you need to borrow)

When taking a loan to fund your holiday expenses, you need to plan in advance otherwise, you will end up having problems later. You should never take out a holiday loan before you determine the amount of money you need. Borrowing using estimates is a recipe for disaster. Planning in advance ensures you borrow exactly what you need which is a great way of controlling your expenditure. It doesn’t really matter if you are taking out a payday loan or personal loan to finance your holiday, you must know how much you need in advance.

3. Look for holiday loan offers

Retail stores aren’t the only businesses offering great deals during the holiday season so, if you have to borrow, make sure you are getting the best deal possible. Banks among other financial institutions offer great loan deals for the holidays. It’s therefore up to you to source for the perfect holiday loan deals. There are plenty of great holiday loan deals available currently in the UK. You just need to shop and choose the best deal for you.

4. Plan to spend wisely

Most people have problems on holidays because of overspending. It’s very easy to overspend during a holiday if you don’t have a budget/plan in place. This is precisely why many people end up taking more than one loan to fund holiday expenditures. To avoid taking in an extra loan and incurring unnecessary expenses, spend wisely. Avoid impulse buying at all costs. You should also capitalise off the numerous discounts offered during the holiday season. Always remember that there is life after the holidays. Have a budget and don’t get carried away!

5. Borrow to fund basic holiday celebrations

Sometimes you may feel the urge to borrow to fund an overseas trip. In such a case, it’s better to consider less expensive holiday celebrations unless you lack money temporarily. It’s never a good idea to borrow to fund a lavish holiday especially if you will have trouble repaying the loan.

Summary

The holiday season has many surprises. You may not get your finances in order in time because of many reasons i.e. late/delayed payments etc. In such instances, you may be forced to borrow to fund your holiday expenses. As long as you plan in advance, look for the best holiday loan offers and spend wisely, you shouldn’t have any problems repaying your loan after the holidays. Furthermore, there is much more to holidays than spending money. If you can stick to a loan amount that is manageable, then there is no problem with taking out a loan for a holiday.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Top 6 Signs You Should Choose A Payday Loan

Top 6 Signs You Should Choose A Payday Loan

There are unique circumstances that warrant you choosing a payday loan over any other types of loans. In fact, payday loans are ideal for almost all kinds of situations that warrant people to take out short term loans. If you’re wondering if you should take out a payday loan or not, look no further. Here are the top 5 signs you need a payday loan.

1. You are tired of high-interest debt

If you’re looking for affordable short-term debt, that’s a clear sign that you need a payday loan. Personal loan and credit card debt are very expensive compared to payday loans. The FCA highly regulates the payday loan sector in the UK. There are interest caps that ensure payday loan borrowers never pay more than they have to. Furthermore, with interest rates caped at 0.8% by the FCA and there being many affordable payday loan lenders, there is no reason why you should continue using other high-interest debt.

2. You have emergency expenses to settle

Payday loans are the best sources of short-term cash for catering for emergency cash needs. Emergency expenses range from unexpected bills to an expensive car repair. Payday loans can also come in handy when you have emergency home repairs i.e. a damaged roof after a storm. When faced by a crisis, there are very few places you can turn to for quick cash. Payday loans are the most favourable sources of emergency cash because they are readily available. You can get a payday loan instantly (a few minutes after your application is approved). It takes longer to borrow personal loans or obtain a credit card or even borrow from friends. If you have an emergency expense that can’t wait, this is a sure sign that you need a payday loan.

3. When you want to enjoy unmatched borrowing convenience

Online payday loans are the most convenient types of short term loans available today. Unlike other types of loans available today, payday loans can be applied for and received 100% online. You just need to fill in a simple online application form and submit it. The best payday loan lenders in the UK process loan applications within a few minutes. If your application is successful, your money is wired to your bank account instantly. You can also make enquiries online. Payday loans offer unmatched convenience. You don’t need to waste any time or effort visiting a bank. Everything can be done online including managing your loan. If you want to enjoy unmatched borrowing convenience, this is another sure sign you need a payday loan as opposed to any other types of short term loans.

4. When you want to boost your credit score

Payday loans are the best types of loans to use to boost your credit score. The loans are readily available, easy to get and manage. Payday loans are also affordable provided you choose a reputable lender. The loans are also available to individuals with bad credit. Unlike other loans, you won’t be overcharged because you have a bad credit score. Taking a payday loan is a great way of boosting your credit score as long as you meet your repayment obligations. Personal loans have a tedious application process. They also tend to be expensive. This makes them less attractive if your sole purpose of taking out a loan is to boost credit.

5. You want variety/unmatched comparison

Shopping for loans traditionally is very limiting. If you are fed up of being confined to a few lenders, this is a sure sign that you need to consider using a payday loan broker to obtain a short term loan. There are many payday loan lenders in the UK most of whom offer online payday loans. As a result, by using a payday loan broker you only need to fill in one application to apply to most payday lenders in the UK.

Summary

Payday loans offer very many benefits over typical short term loans. If you want to enjoy unmatched convenience, variety, comparison and low-interest rate charges, this is a sure sign that you need a payday loan over conventional short-term loans. You also need a payday loan when you want to take on debt for the sole purpose of boosting your credit. Payday loans also need to be your #1 source of cash when you are faced with emergency expenses because you can get a payday loan within minutes.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

How to Run a Credit Check in the UK

How to Run a Credit Check in the UK

Overview

Although it’s not mandatory to perform a credit check in the UK or anywhere else, it’s a good idea to do so. Remember, a credit check reveals your credit score and credit history information that gives you indications of all the issues that are bound to affect your ability to access personal loans, payday loans, short term loans, mortgages, car loans etc. 

Getting started

The UK has 3 main credit reference agencies namely CallCredit, Equifax, and Experian. There are many other referencing agencies. It is, however, important to work with these three agencies because they are the most reputable. When you want to run a credit check, you should also consider the fact that they don’t all give the same score. It’s advisable to choose the agency that matches your lending needs perfectly i.e. an agency used by your preferred lender.

Requesting for a credit report

You can request for a copy of your credit report from any of the three main agencies in the UK. You can request online or offline (by post). UK citizens have the right to obtain their full credit report according to the Consumer Credit Act. The three main agencies are obligated to give UK citizens one free report a year. Citizens interested in getting their report more than once among other credit referencing services are required to pay a fee dictated by the credit reporting agency in question. Below is the information of the three main credit reference agencies in the UK to help you request for your credit report by post or online;

CallCredit

Website: http://www.callcredit.co.uk/, Phone: 0870 060 1414, Consumer Services Team, PO Box 491, Leeds, LS3 1WZ.

Equifax

Website: https://www.equifax.co.uk/, Phone: 0844 335 0550, Equifax Credit File Advice Centre, PO Box 1140, Bradford, BD1 5US. 

Experian

Website: http://www.experian.co.uk/, Phone: 0800 013 88 88, Customer Support Centre, PO Box 9000, Nottingham, NG80 7WF.

Procedure

When running a credit check online, you will need to enter your details to run a credit check. Agencies usually require you to register with your personal information i.e. your names, date of birth, email address and phone number. You are also supposed to review and accept the terms and conditions of the credit reference agency in question, confirm the information you have filled in and then submit your request. You may also be required to provide other information i.e. you payment information if you want to pay for other credit reference services. Once you submit, you should be able to get your credit report immediately.

Reporting problems?

In case you encounter a problem running a credit check, you can always contact the agency. If your report has problems, you should report and request for amendments. It’s important to note that credit reference agencies get information from banks/lenders you have dealt with in the past, so any errors submitted by those institutions will reflect in your credit report. 
Credit report errors can range from something as small as a wrong address to fraudulent activities and defaulted payments you actually made. You can, however, report such problems and have them rectified so that your credit report shows the accurate credit score/information. Mistakes such as a default payment that you actually made affect your credit score negatively so it’s important to report any problems you find on your credit file. 

You can write to the credit reference agency or use the online mechanism the agency has for reporting errors. You should make sure you give a detailed explanation as well as evidence if you have any to make sure the error or errors are corrected. 

Credit report agency responses

Credit reference agencies have 28 days to act on concerns raised on credit reports. During this period, such concerns/errors are marked as ”disputed”. This is usually the case so that lenders who come across your file can be alerted not to rely on the specific piece of information that is disputed. In case the agency fails to amend your records, you have a right to send them a notice of correction which should be added to your credit file. The notice should not exceed 200 words. It should also explain why the piece of information in question is wrong including mitigating circumstances i.e. a good reason why you missed a loan payment such as a sudden bereavement.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

Loan Secrets of the Rich: What You Need to Know

Loan Secrets of the Rich: What You Need to Know

Getting into debt isn’t a bad thing if you purpose to use the debt wisely. It’s important to note that most of the wealthiest people today got to where they are by using other people’s money (or debt if you like). It’s not a secret. Many wealthy people have been on record attesting to this fact. Large companies also get ahead by taking on debt so what is it about debt that tends to work for the rich? Here’s what you need to know

Borrow to buy assets 

Rich people follow this debt rule religiously. You should never borrow to fund a liability. Liabilities are things which take money out of our pockets. A good example is a personal car. Your personal car will never put money into your pocket unless you hire it out or use it in your business. Personal cars need insurance, maintenance, fuel, etc. but they only seem to offer convenience, and in most cases, public transport is more convenient. So, taking out a personal loan to buy a personal car isn’t smart. Rich people don’t do it. You shouldn’t do it either. You should instead take out loans to buy assets i.e. things that will put money in your pocket like a rental apartment. 

Borrow to start a business

Many rich people also seem to have gotten their big breaks when they took out loans to start businesses. Taking a loan to start a business is by far the smartest way of using a loan. It’s hard to regret if you take a business loan provided you have a solid business plan. Furthermore, it is very hard to become rich when you are working for someone else. This is precisely why you should think of taking a loan to start a business before you think of anything else. 

Borrow when the projected returns are greater than the cost of the loan

Sometimes you may be borrowing to take advantage of a money making opportunity that may not necessarily be a business. For instance, you be looking to buy a cheap house, stock, etc. that you can later sell a high price. Before you take a personal loan to take advantage of such opportunities, make sure the cost of the loan is lower than the projected returns. The rich never take on expensive debt. Everything has to make business sense. If they won’t make some money out of debt, you can rest assured they won’t take it.

Borrow if you can afford to lose the collateral/security

This is another loan secret rich people adhere to. Have you ever asked yourself why rich people never suffer even when they claim to be unable to repay their debts? Well, it’s because they never secure debt with assets they can’t afford to lose. If you can’t afford to lose your house, don’t secure your loan using your house. Taking debt is usually a risk regardless of how solid your plans are so you should always ensure you are protected in case the worst happens. Everyone faces credit risks. However, the rich are usually better prepared for the worst which is why they are able to bounce back faster than everyone else.

The more money you have, the easier it is for you borrow

You should also know that the rich have easier access to loans than everyone else so boost your net worth and have unlimited access to loans. It’s easier to borrow when you are rich because you have more assets which translates to lower risks for lenders. This is the main reasons the rich keep getting richer and the poor have a hard time getting rich. This point alone should motivate you enough to seek loans and spend those loans wisely i.e. buying assets or starting businesses.

Summary

Debt can make you rich. Many rich people who start out poor become rich because of taking up debt and using it wisely. First and foremost, understand that it takes money to make money. You also need to know when to borrow and how to borrow. If you’re smart about loans and money in general, you won’t have any problem taking and repaying your loans. You’ll also get rich in the process.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.

How Do You Avoid Personal Loan Scams?

How Do You Avoid Personal Loan Scams?

Overview

Many people turn to personal loans when faced with financial difficulties. Once approved, personal loans offer borrowers some much-needed money to settle pressing cash needs. Fraudsters usually try to capitalize on the vulnerability of some personal loans seekers mostly those people looking for quick cash. 

Most loan scammers take anything they can from loan seekers including personal information and sell it. Although the FCA has strict measures in place to catch and punish loan scammers, there are still many incidences of loan scams in the UK. So, how do you avoid being a victim of a personal loan scam when you are in need of cash? What should you do when you want to get a personal loan without being scammed?

1. Be on the lookout for lenders who ask for upfront fees

One of the easiest ways to spot a loan scam is to check if you have to pay anything to get a loan. The FCA calls it Advance Fee Fraud. Although some lenders may charge fees like loan origination fees, you shouldn’t pay anything for your loan to be processed. It is important to avoid lenders who charge you anything before you get your loan since most personal loan scammers do this as well. With most loan scams, you pay upfront fees between £60 – £100 but never get a loan.

2. Consider the loan marketing tactic
You can also be able to spot a personal loan scam by checking the marketing tactic being used to market the loan. Although it is completely normal for lenders to market personal loans to potential borrowers, the marketing tactics shouldn’t be too aggressive. If you get the sense that you are being pressured to complete a loan application or submit your personal information, think twice. Lenders usually send quotes to potential borrowers. However, they shouldn’t pressure you to take a loan or act fast/immediately.

3. What are the credit requirements? (No credit requirements? Run!)
The credit requirements should also help you identify loan scammers. Reputable lenders never lend to borrowers without assessing their ability to repay the loan. A lender should be concerned about your credit history and/or credit score since it’s an indication of your ability to meet your debt obligations. If a lender doesn’t seem to be concerned about your credit history, credit score or any other information that shows your ability to repay the loan i.e. your employment information, that’s a serious red flag.

4. Does the lender have a reputation, physical location information?
Before you borrow money from any lender, it’s advisable to find out as much information as possible about that lender. Reputable personal loans lenders have a reputation and a good one of that matter. Scam lenders are usually anonymous. It’s hard to find out crucial information about them i.e. their location, registration/authorization/licensing details, etc. when you perform a quick search online. You can visit the Financial Services Register (https://register.fca.org.uk/) to find out if the lender in question is regulated. If you have problems finding information about a lender or what you find is negative, beware.

5. Are the lender’s connections questionable?
Most loan scammers usually purport to work with established financial institutions. Although there are many legitimate loan brokers, loan scammers can’t prove their connections with reputable lenders. To avoid being scammed, you have to be willing to do some homework. Reputable lenders usually have a list of loan brokers they work with, so it shouldn’t be a problem ascertaining a broker’s connections with a reputable lender. You should get details of a broker i.e. phone numbers and location information from the lender in question. If you are receiving calls from unofficial numbers, beware. 

Summary

When you are in dire need of cash, it’s easy to fall to scams. The above information is bound to help you separate legitimate personal loan lenders from scammers. Loan scammers always ask for upfront fees. They also use aggressive marketing tactics and care less about your ability to repay. Loan scammers also have questionable reputations and connections to legitimate lenders so, it’s very important to be skeptical before you take out any personal loan regardless of how slick the loan promotion looks. Always remember; loan scammers work hard to disguise their scams as professional and legitimate operations. 
 
In case you fall prey to a loan scam in the UK, don’t worry. You can report loan scams in the UK to the FCA: Hotline: 0800 111 6768 or Action Fraud. Phone: 0300 123 2040, Website: http://www.actionfraud.police.uk/
 
A great alternative to personal loans when you are in dire need of cash is payday loans. Swiftmoney is one of UK’s most reputable payday loan lenders.

Is the Company Director of Swift Money Limited.
He oversees all day to day operations of the company and actively participates in providing information regarding the payday/short term loan industry.