Finding yourself in a tricky financial position can make you desperate for help – and turning to some less trustworthy sources to find it. But this is where the saying “if it seems too good to be true, it probably is” proves itself true time and again.

Websites and companies that offer loans with the terms “blacklisted welcome” and “no credit checks” or low interest (e.g. below prime lending rate) are highly questionable.

Moreover, many loan scams offer to find you a loan. They often ask you to enter some details before they can take you to the next step in the process, but once you get to this point you find they are not a credit provider at all. Instead, you have signed up for a legal assistance service and agreed to pay a monthly fee for this. So always be sure of the exact terms and conditions of any offer you’re looking into.

It’s all about being smart and going through the right channels. Life seldom has shortcuts. So, if you are in need of financial assistance, approach reputable credit providers or registered financial advisors

Some guidelines:

• Always check that the financial provider is registered with the National Credit Regulator (NCR). Reputable credit providers will always be registered and affiliated with this regulatory body. Also check that they are registered with the Financial Services Conduct Authority (FSCA).
• Loan providers are also required by law to conduct an affordability valuation. If the credit provider you’re approaching doesn’t do this, it’s a huge red flag.
• You should never have to pay upfront fees for a loan – another huge red flag. So avoid any company that asks for an upfront fee to cover administration costs or processing.
• Do not provide any personal financial information over the phone or internet unless you are sure that you are dealing with a reputable provider.
• Avoid loan services advertised on classified websites, those advertised with only a phone number and those with contact details containing a free email address.

If something feels a bit off, or if it’s all too good to be true, rather avoid it than get yourself caught up in a scam.

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