Search results
- According to the FTC, it's unlawful for telemarketers to offer you a loan and ask you to pay for it before they deliver. A lender who reaches out to you first in person or via phone may be a scammer trying to get your personal information. Ignore solicitations and only consider lenders whom you have reached out to first.
money.slickdeals.net/guides/guide-personal-loan-scams/How to Spot Personal Loan Scams & Red Flags - Slickdeals Money
Mar 15, 2024 · A loan scam is a fraudulent offer for a personal loan. This is done either to gather information like your Social Security number or to convince you to pay for a product you won’t receive. In general, loan scammers will present themselves like legitimate personal loan lenders.
- Writer
- No credit check required. If the lender is advertising that you can borrow money without undergoing a credit check, be cautious. Legitimate lenders will thoroughly assess your ability to pay the loan back by looking at your credit score, income, and employment history.
- No physical address. Search for the lender’s address online or in a directory. If you can’t find a physical location or clear contact information for the lender, consider this a red flag.
- Email address. If an email is coming from a personal email account (e.g. Gmail or Hotmail account), or the email address domain (the part after @) doesn’t match the company name or website, this is another clear warning sign of a lender looking to scam you.
- Spelling and/or grammar mistakes. While fraudulent lenders want to trick people in appearing legitimate on their website or in their emails, there will often be spelling and grammar errors in their communications.
Sep 29, 2023 · Here are 12 warning signs to look out for. 1. Phone Offers. If you receive a phone call offering you a guaranteed personal loan or unusually low interest rate, it’s most likely a scam. Reputable lenders do not cold-call potential customers. It is illegal, in fact, to make loan offers over the phone.
- Louis Denicola
- The Lender Guarantees You'll Be Approved. If you don't have the best credit history, you may get excited when you come across a personal loan that offers guaranteed approval.
- The Lender Is Not Registered in Your State. According to the Federal Trade Commission (FTC), lenders must be registered in the states where they do business.
- The Lender Pressures You to Act Immediately. One of the most common red flags of a personal loan scam is a lender that gives you a deadline to take out a loan.
- The Lender Does Not Have a Physical Address. If the lender lists a physical address on its website, look up the address on a mapping website like Google Maps.
Sep 12, 2024 · You might be dealing with a personal loan scammer if you're receiving unsolicited loan offers via email, text, phone, or conventional mail. If you need a personal loan, it's...
Dec 4, 2023 · Let’s look at red flags that can help you spot personal loan scams. 1. The lender asks for fees upfront. A reputable lender won’t ever ask you to pay an upfront fee to access personal loan funds or to review personal loan paperwork. If a lender does ask for payment before you access your loan funds, this is almost always a sign of a scam.
People also ask
What if a personal loan is a scam?
What is a loan scam?
How can I avoid a personal loan scam?
Can a personal loan scam hit you when you're down?
How do you know if a loan offer is a scam?
What should I do if I have fallen for a personal loan scam?
Sep 7, 2021 · Key Finding. Scammers impersonate bank lenders offering personal loans and debt consolidation (and even forgiveness). Key Risk. You could lose any money you give them to pay for advance or processing fees and your identity could be stolen. Sections on this page. How Personal Loan Scams Work. How To Beat Personal Loan Scams.
