If you want to borrow money, but this is not possible at a bank, then you can look for a private lender. However, this loan method has a number of advantages and disadvantages. You will find the most reliable lenders in your family or among close friends. Moreover, loved ones will usually not charge you high interest. You do have to bear in mind that borrowing money from family or friends can sometimes influence mutual understanding, for example in the event of payment problems. This will be overcome by putting clear agreements on paper in advance.
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If you do not want, or cannot, take out a loan with family or friends, you may consider borrowing money from an unknown lender. Online and in newspapers you can regularly find advertisements of people who offer loans. Of course you can also go to site >> and get 100 guaranteed approval on payday loans.
Reliability of a loan
If you engage an unknown private credit provider, you naturally want someone who is reliable. Unfortunately, there are a large number of individuals who want to lend their money, but where you can get into (serious) problems. Most people who borrow money from an unknown private individual are often desperate. Unfortunately, this is a reason for abuse for a number of people. However, by paying attention to the following signals, you can partially limit any risk:
- Do not do business with someone without a telephone number or with a foreign number because this will certainly not improve reliability.
- If the loan provider asks for a lower interest rate than the average savings account, then you must ask yourself why the private individual wants to lend money.
- Never make a deposit to be able to borrow money. You often lose your down payment and you get even further into financial difficulties.
- Ask if the private lender wants to draw up a contract. This offers more certainty for both parties.
- Do not engage with loan providers who send a copy of their identification: this may seem reliable, but you never know whether it is about their true identity or whether there is a counterfeit.
- If something is too good to be true then you have to drop out immediately. This certainly applies if you want to borrow money from a completely unknown person.
Reliability of the borrower
It is crucial for a borrower to borrow money from a trustworthy person. But it is also important for the lender to know that you can be trusted. For this reason, determine in advance whether you are able to strictly comply with certain agreements. This is definitely recommended if you borrow money to settle bills or to get out of the money worries. By being honest with yourself and others, you can determine whether borrowing money is really the most suitable solution for your financial misery.
It will often not be easy to find a reliable private party that you want to give a loan to. Certainly if you cannot appeal to people from your immediate environment. It can sometimes take a long time before you have found a reliable person who wants to borrow your money on acceptable and fair terms. In order not to get further into the financial problems, you have to be very careful and patient.
Always try to contact the private lender by telephone, or make an appointment in person. A reliable party who wants to provide you with a loan will certainly appreciate this and has nothing to hide. Borrowing money from a stranger is serious business. If you do not feel good about a person or offer, cancel the loan.