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Sep 29, 2023 · Identifying loan scams requires vigilance and attention to detail. 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.
- Text messages and robocalls. An out-of-the-blue robocall or text message inviting you to apply for a loan should give you pause, especially if you’ve had no prior contact with the lender.
- Advertisements of ‘guaranteed’ approval. A trustworthy lender can't guarantee you'll get a loan without reviewing your credit and finances, so avoid those that promise approval before you’ve even applied, Breyault says.
- No state registration. Lenders are required by law to register in the state where they do business. So if you have doubts about a lender, check to see if it’s licensed.
- A bad online reputation. Research a lender’s online reputation to confirm (or quell) your suspicions. Enter the company’s name into the CFPB’s complaint database and the Better Business Bureau’s directory to see what others are saying about it, Martindale says.
- What Are Personal Loan Scams?
- How to Spot Personal Loan Scams
- How to Combat A Loan Scammer
- How to Search For A Legitimate Personal Loan
A personal loan scam is a way for fraudsters to obtain your Social Security number or collect fees without lending you any actual money. Some of the most common personal loan scams involve fraudulent lenders acquiring your information or funds by promising a loan without a credit check. Others make unsolicited loan offers and then collect upfront f...
Personal loan scams are pretty common, but, luckily, there are ways to spot them before you get caught up in one. Here are some warnings to look for when identifying a loan scammer.
If you suspect you’ve been exposed to a personal loan scam, it’s important to report it to authorities so others don’t fall victim to the same threat. Combat a loan scammer by following these steps: 1. Compile documentation of the scam.As soon as you suspect a loan scam, assemble copies of emails, loan documents and voicemail recordings from the su...
If you need a personal loan and don’t already have a relationship with a bank, research several lenders to find one that best suits your needs. Take these preliminary steps to ensure you are applying for a legitimate personal loan: 1. Read online reviews 2. Get recommendations from friends and family 3. Review the Better Business Bureau’s rating 4....
Oct 31, 2024 · A loan scam is a loan that’s offered under false pretenses. The scammer often hooks their target by making a big promise they can’t deliver on, or by hiding the actual cost of the loan. Loan scammers even use fake company logos, false caller ID numbers and other tricks to impersonate legitimate agencies and gain trust.
- 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.
Aug 19, 2024 · 1. Unrealistic guarantees for approval. One of the most obvious signs of a loan scam is the promise of guaranteed approval. Legitimate lenders require a thorough review of your financial details ...
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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. But certain clues, like a missing physical address, can be good ...
