The Dangers of Online Loans

June 26, 2019 11:03 pm Published by Leave your thoughts

Nearly everyone’s been there at some point or another—whether your car breaks down, you find yourself out of work or are hit with a major medical expense, you’ve likely found yourself looking for a quick, temporary infusion of cash to get you through to the end of the month.

Thanks to the internet, it’s now easier than ever before to receive an unsecured personal loan or payday loan. Unfortunately, this also means that it’s now easier than ever before to be taken advantage of, charged secret fees and have your identity stolen.

Pawn shops present a safe, local alternative to potentially shady online loans. Pawn shops lend money based on the value of items that you put up as collateral. This means that your loan is always backed by the value of the item that you’re pawning. Additionally, pawn shops are subject to stringent state and local regulations that protect consumers.

Here are just some of the warning signs that may indicate that an online loan in Barberton, OH is actually a scam:

  • No credit check required: Pawn shops are able to lend money without conducting a credit check because they hold an item as collateral. Online lenders, however, have nothing to hold if the borrower defaults on the loan, which is why the borrower’s credit score is so important. If a lender doesn’t ask for a credit score or collateral, it’s likely a scam.
  • Unregistered lenders: All lenders need to be registered in the states in which they’re conducting business. If a company says that it doesn’t need to register, they’re either lying or doing business illegally. You can usually find a list of lenders registered in your state through the state’s attorney general.
  • Lack of physical address: Before accepting an online loan in Barberton, OH, you should check for a physical address for the company issuing the loan. If you can’t identify a physical address, there’s a good chance that the company isn’t legitimate. Be wary of foreign loans, as well.
  • Misspellings and poor grammar: Real lenders should present themselves professionally. If you’re struggling to get through the poor grammar and spelling of communications sent to you by an online lender, that’s usually a red flag that something isn’t quite right. Run their communications through an online grammar checker if you’re not certain.

Since 1949, Sydmor’s Jewelry and Pawn Shop has been the premier source of loans in Barberton, OH. We’re proud to provide fair rates and terms to our customers. All of our operations are consistent with state and local laws. If you’re looking for a trusted local lender to help you through your time of need, look no further than Sydmor’s Jewelry and Pawn Shop.

Our pawn store is also a great place to shop if you’re looking to save a few bucks! We buy and sell guns, jewelry, power tools and more. Reach out to us today to learn about our loan terms, or to find a great deal on an item that you need.

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