Most borrowers don't have a good impression of online loans, but they have to use them when they are short of money, especially some online loans that have super high interest rates under the guise of legal compliance, which is even more frustrating.

The editor has always had a question, why is this kind of online loan still available for credit investigation? This is obviously a loan shark!

I believe that many people have had this experience. After borrowing an online loan, they found that the final interest was almost half of the principal or even higher, not to mention the extremely high overdue fees after overdue.

Why can loan sharks get a credit report? Is this legal and compliant? Let's take a look at how these so-called formal online loans are tricky.

1. Fighting laws and regulations, pressing the red line of interest rates

Everyone knows that the annual interest rate of online loans cannot exceed 24%, and that the portion exceeding 24% and less than 36% is neither recommended nor prohibited by the state.

Therefore, many online loans, especially some online loans with credit reporting, press on the 36% annual interest rate red line, and first raise the normal interest rate to the highest point.

Then part of the credit-checking online loans will add various other fees, such as service fees, channel fees, labor costs, etc. Anyway, there are so many kinds of names, but these various names are definitely not called interest.

In fact, it is the fact that it is wiping the rules, wearing the cloak of regular online loans, and doing high-interest loans.

2. Pack yourself into a formal online loan

The online loan market is extremely chaotic, with various types of online loans emerging one after another, such as unsecured, low interest, and loan restructuring.

It is not ruled out that the market has very formal online loans with interest rates that are in line with the regulations, but this is a minority after all.

Most online loans take advantage of the chaos in the online loan market and package themselves into formal online loans. All kinds of documents are complete, a lot of financing, and sufficient strength. On the bright side, everything is compliant, including regulations. Interest, and then crazily planting advertisements on major media platforms. Over time, more people will be trusted.

3. Use credit reporting, violent collection and other methods to obtain high returns

There are actually two types of credit investigations, one is Baixing's credit investigation, and the other is the central bank's credit investigation. In fact, there is a big difference between the two.

Baixing Credit Report is a kind of market-oriented personal credit reference to regulate the loan market. Simply put, it is the reputation among major lending institutions, and it is related to whether you can borrow money on major online loan platforms in the future.

The central bank credit investigation is a record of personal credit or corporate credit, which is related to the restrictive standards of other aspects of your future social life. To put it bluntly, the online loan of the central bank credit investigation will affect your daily life after the penalty is overdue. It's huge, and it's not just limited to whether you can get a loan.

but! Many online lenders say that they have applied for credit investigation. In fact, they have applied for credit investigation by Baihang. By using the borrower's fear of applying for credit investigation, coupled with violent collection, it is easy to obtain a return that exceeds the statutory interest.

Online loans with relatively high interest rates on the central bank’s credit investigation do exist. This proves that the current chaos in the online loan market in China proves that the current online loan market supervision system is imperfect.

In terms of Internet finance, we still need to do a lot.

In the face of this kind of online loan with high interest rate, there is no other way but to negotiate the repayment and reduce the interest to within 36% of the red line.

However, the winter of online lending is coming, and many online lending giants have closed down. I believe these "regular" online lending with ghosts in their hearts will not continue to be tough.

If it is really tough, the borrower should not be persuaded. You can complain or take legal means to protect your legal rights. If you need to repay it, you don’t owe anything, and you don’t need to pay more.

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