If you see a great loan opportunity, it can be tempting to grab it at once, right? But are you sure you’re dealing with a real lender? The key is to know how to prevent yourself from loans scams, before it’s too late.
The sad but true fact is that having bad credit can keep you from even applying for a loan. All those bad credit loans reviews make people, hoping to get some money to pay the bills, vulnerable. That’s where scammers come into a play.
Last year, scams sucked $905 million out of the U.S. consumers’ wallets, according to the Federal Trade Commission report. Every year scam loan companies run an elaborate scheme to target consumers who are financially vulnerable. Without a doubt, those crooks know that some consumers are down to luck so they know clever ways to trick you out of your money by offering you scam loans.
As long as you know exactly where to look for lenders with real bad credit loans, no scams can be your friends. Don’t become a fraud statistic. Read carefully these tips on how to prevent yourself from bad credit.
Tip #1: Check reviews, make sure it’s legit & safe
Who says only lenders can do a background check?
With anything you try, give yourself a lot of time to make sure you choose a legit lender. As scams go clever, you need to get smarter too. Knowing what to be on the lookout for is one of the best ways to protect yourself from personal loans scam.
According to the National Consumers League’s Fraud Center, bogus payday loan sites snag people with its completely legitimate look with fake video testimonials. Scammers are good at making their websites look authentic. Be aware, promises to ‘fix’ your credit score may be tempting, but they’re not true.
So, go ahead and make your research. Better yet, google the company & reviews to see what comes up. Get full contact details, including a street address. A good rule of thumbs, check out who registered the website. Again, if a lender is not listed in any of states, be aware, you’re dealing with a loan scam.
In order to avoid find online loans that are not scams, make sure the information you put online is encrypted. Make sure it’s safe & protected with the padlock symbol. Don’t risk your personal info. Always look for an ‘s’ after ‘http’ if you don’t want to become the next victim of scam loans operator.
If you have some hesitation, really dive in, do a little bit of research and try to determine if the website is official. As long as you can find positive bad credit loans review and ratings of a lender offering real loans, no scams can snag you.
Tip #2: Don’t trust a Lender Who Doesn’t Want to See Your Credit History
Scammers continue to become more creative in getting their hands on your hard-earned cash. It’s undeniable fact, that it’s unlikely that any credible company will lend you money no matter what your credit score is. Among the most common personal loan scams are those that do not require credit checking.
Be aware, if a lender is not interested in seeing your credit score, it could be a scam. Legitimate lenders make it clear that they will need to look at your credit score. This is true especially for legitimate lenders for bad credit loans. Once a lender does at least a soft credit check and thus knows your history, he gets some assurance that you’ll pay your bills on time and in full.
- Are there bad credit loans guaranteed approval?
- Are there long-term installment loans no credit check?
Remember, loans scam operators are interested in the opposite. They seek for high-risk borrowers who are most likely to fall behind on loan payments. As a result, exclusively high late fees and penalties come into a play.
Tip #3: It is Easy to Contact
Most legitimate lenders who offer legit emergency loans, mortgage or student loans shouldn’t shy away from providing a physical address, phone support or live chat. No robots alone are acceptable when it comes to reputable companies.
Most of the scammers use some tricks behind the scenes to actively approach you online, by phone or email. By using terms like ‘last chance’ or ‘limited offer’ they can pressure you into making a decision. Beware of developing a friendly relationship either. The more you listen to them, the faster you can go along with something they suggest.
As long as the loan company you work with has an office and customer service phone line, the bigger the chance that they are a legit loan lender. No scam loans operators are interested in real employees. With no evidence of real customer service, there’s no way for you to confirm that they are a real loan lender.
Be aware that Personal Money Service never calls its clients.
Tip #4: Be Aware of Upfront Fees or Loan Collateral
Avoiding paying upfront fees or loan collateral can prevent you from bad credit loan scams. In fact, this is one of the most common ways scam loan companies use to drain your debit card.
Typically, legitimate lenders can charge a fee to process your loan, but if a lender asks to make a fee before you’re approved, be wary, you’re dealing with a scam loan. Many of these crooks will tell you the upfront fee is for ‘insurance’, ‘processing’, or ‘paperwork’, don’t fall for that, legitimate lenders won’t require you to pay upfront for the loan.
Remember, no upfront payment will ever guarantee you get a loan, so, keep an ear to the ground.
It’s wrong to rob banks, yeah, but is it right for banks to loan people money, knowing full well they can’t pay it back?
Tip #5: Does It Sound Too Good to Be True?
When you seek out a loan, you want the best deal, but you also need to be realistic. If it sounds too good to be true, it usually is. Don’t fall into the trap of these business loan scams.
Generally, online lenders that are not scams do not promise you an outstanding deal with huge return guarantees or low risk. Above all, go with your gut. If a loan lender offers you a great deal, you would likely have heard about the deals and the company would have some press, for sure.
Tip #6: All is Fair in War
Well, it’s not easy to track down all those credit scams operators offering great deals right away. Anyway, before you agree to sign anything and let drain your money, let a lawyer look over the agreement. Remember, no scam online loans operators are interested in that. Once it objects to this, that is a huge red flag for you.
A legit lender will provide you with a transparent contract outfighting how much you need to pay, potential penalty fees if any, and your interest rate. As long as you have done all you could to prevent yourself from credit scams, chances are you will be able to avoid getting snagged.
Besides, it’s a great chance to have some fun. While many of loan scams come from outside the U.S., mistakes in grammar and misspellings will give you a flag that you’re dealing with a loan scam. So, instead of confirming your identity, better let them go.
On for You
For those with bad credit, finding the legit online lender can prevent themselves from getting trapped into loan scams. By making research, your responsible lending decisions will help you to find real bad credit loans, no scams.
Keep this tips in mind every time you are in tough spot. Remember, knowledge is your best defense against personal loan scams.