How to avoid paying upfront loan fees
If you are looking for a guarantor loan on the internet and you are worried about paying an upfront fee for a loan that doesn’t materialise then read on because we explain how you can avoid falling into the same trap as hundreds of thousands of other loan applicants.
When you apply online to a guarantor loan company there are a number of things you should be careful about. They are:
- Providing your card details.
- This applies even if the loan company asks you for your card details ‘to prove your identity or confirm you have a bank account’. There is absolutely no need for any loan company to require your debit or credit card details.
- Agreeing to join their ‘club’.
- This is where they ask you to pay a one off membership fee to join a club which gives access to money saving offers, vouchers and other ‘freebies’. This will also include searching for a loan for you (note the use of the term ‘search for a loan’ and not ‘provide you with a loan’. The fact is that you can join plenty of money saving, voucher and discount clubs at no cost whatsoever so again, there is no need to pay a fee to join such a club.
- Paying a ‘release or approval’ fee.
- This is another common reason that loan companies use to get people to pay an upfront fee. They make it appear that the loan is ready to be paid into the applicant’s bank and that all they need to do this is a ‘fee of £79’ to release the funds only to find (in many cases) that no loan is forthcoming.
The bottom line is that loan companies do not have to charge clients an upfront fee because they get paid a commission by the lender they place your case with. So the next time you apply for a loan online make sure that you do not give them your card details otherwise you may fall into the upfront fee loan trap.
