Money lending is the act of lending money to people in need. However, it is not a charity project. It is transactional in nature. The money lender gives you money in return of interest on it. Any sum that you borrow for interest is called a loan. There are many ways to get a loan in the market. You can approach a bank but it will look at your credit score and history before lending you the money. Another option is borrowing money from a money lender such as money lender ang mo kio.
Borrowing money from a money lender can be dangerous for various reasons. First of all, these loans are not from formal institutions. So they have their own rules. Secondly, they are private and can charge high interest on simple sums. But not all money lenders are seeking exploitation, some are really good to borrow from. Nevertheless, we should beware such lenders that are scammers and dangerous. Here are some ways to know whether the money lender is safe to deal with.
Credit Score & History
The money lender is safe to work with if he or she checks your credit score and history. Credit score and credit history are important markers that tell a lot about a person. These markers are in existence to identify ability and inability. Lenders that take credit score into account are safe to work with as they take safety of their money first and also your safety indirectly.
The lender should have an office or some kind a connection to your location
Another important marker. It is better if a lender has an office or some sort of connection with your location. If a lender is outside your state or location, then it is best to stay away from such people. Most of it reeks of scams.
Do not trust lenders that try to push loan down your throat
Many lenders resort to this. Safe and professional lenders do not approach lending by calling, texting or by having a salesperson knock at your door. They will rather advertise their service or work through references. Stay away from lenders who try to push money down your throat.
Therefore, borrow money from such lenders that take your credit history and score into account before lending the money. Also, stay away from lenders that do not belong to your location or the ones that push loans on your face.