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!

3 Big Threats To Avoid When Looking For An Online Loan

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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

A payday loan from Cigno

Short-term loans are our speciality at Cigno Loans. We understand that when you’re having a tough month, a quick payout loan could make all the difference. This is exactly why we’ve designed a system that allows you to apply online from wherever you want, get approved within hours, and have the funds in your account the same day.

We offer payday loans up to $500, which in most cases, is more than enough to get you to your next payday. These loans are very different to typical personal loans in a variety of ways. We don’t look at your credit score when deciding how much to offer you, so if yours is not in very good shape, you can still borrow from us.

All you need to apply for a payday loan online is your government issued ID and your most recent bank statements. With these, we will be able to assess your current level of income and offer you an amount that is perfectly appropriate for your circumstances. Even if you’re self employed, and used to being turned down by conventional loan providers, as long as we can see that you can afford to pay back the amount you’re borrowing, we’ll be happy to help you out.

Need more than $500? Then you need to contact us directly to explain your situation in more detail. We usually only offer larger amounts to customers who have borrowed from us without any issues in the past.

Emergency overdrafts

Most bank accounts will come with these solutions already active, but the amount they allow can depend greatly on your current credit score, how you’ve handled your account in the past, and the type of current account you currently use. In some cases, it’s possible to contact your bank or apply for a quick overdraft limit online. Some providers will be able to extend your limit within days, but rarely will any bank be able to process your application within hours.

Remember that if your account allows you to be overdrawn, but you don’t have an overdraft limit currently arranged, the fees for such credit can be higher than you’d expect. In most cases, the charges are applied on a daily basis. If an overdraft is your prefered route, make sure you try to have one officially arranged before using the funds, otherwise you’ll incur these far more expensive “unarranged overdraft” fees without question.

Fast delivery credit cards

These are never going to arrive the same day you apply for them, but some credit cards may arrive within days if you get them from the most efficient providers. Just like all other forms of credit, you’ll need to have a seriously good credit score to achieve cards with much larger limits. You can have starter cards or those designed to build your credit history, but these will always come with the highest interest rates in the market. You can also consider secured credit cards, but then come with an upfront security deposit cost that might not be able to cover.

You have to do your shopping around to find the best deals. Such a competitive market means there are loads of options to choose from. Getting approved for a credit card might take longer than the other options described above, but once you have one, you’ll be able to use it over and over as long as you keep up with the repayments.

Those are our picks! We hope this quick list of ideas helps you. When you need an online loan with instant approval in Australia, the fastest way to get an fast injection of funds is with a payday loan. You can try other credit options if you have more time, but if you need the funds right away, a short-term loan could be the only way to access the money within hours.

Read more about online loans with instant approval here, or in our recent blog post: Common Requirements for Fast Cash Loans