Warning Against Free Grants
In the website USA.gov, it has been stated that certain individuals or groups may be eligible for government grants.
According to the site, “grants are used to carry out a government authorized purpose, and are not provided as personal benefits from the government or assistance.”
However, there are still a number of scammers and con artists who use grants to lure unsuspecting individuals with their tempting offers, only to find out that it’s you who’ve been robbed.
Scam federal grants can easily look like they’re the real thing. Someone might call you that you qualify for a federal grant for paying your taxes promptly. The caller will go on promising you that a huge amount will deposited into your bank account as soon as you give the details. You will also be made to pay the processing fee.
For instance, if the said grant offers you $12,000 of literally free money while you only have to pay $250 in processing fee, you basically just have to shell out a small portion of the grant money you’re about to get. However, the government warns that if you are truly qualified for a grant, you wouldn’t have to spend any money. If you give in, you’d be left $250 poorer.
The website also goes to explain that loans are not the same as grants. Although the US government offers federal loans, these loans are actually for personal benefits. You’d also have to pay for them, plus the interest.
But if it’s loans that you’re looking for, you also need to check into the authenticity of the lender as well as his credibility to operate a lending business. This is particularly true for alternative lending. If there’s one thing you need to remember when borrowing, stay away from loan sharks. They might be able to provide you with the money you need, but you’re likely going to be harassed into repaying.
Don’t forget that you have options even in your most desperate moments. In fact, it’s just a matter of searching in the internet for the best and most reputable lender in your area. If you need the money right away, you can find a number of online loans, cash loans and personal loans willing to lend you the very same day you applied and got approved.
But just like grant scams, there are also loan scams so make sure to know the red flags early on. First, you should know that all fees and charges should be deducted in your loan amount. If you’re asked to provide an upfront fee, it is best to find another and better lender.
Second, you need to make sure that your personal and financial data is secured by the lender. You can ask the lender about their processing protocol and their measures against identity theft. Fortunately, legitimate and reputable lenders do operate with advanced data encryption to make sure your information is safe with them.
Lastly, you can check with the Federal Trade Commission and Better Business Bureau to know the reputation of your lender. Remember, your loan comes with a price so it just makes sense to borrow only from real and reputable lending firms.