Bad Credit Car Financing Scam: How It Works
Car loans for people with bad credit and fake lenders. Beware of fraudulent practices. The newest scam around is the Bad Credit Car Financing aka the Car Loans Bad Credit scam. It comes in two variations. Let’s take a look at an example.
You may be looking for a new vehicle and wonder how to get approved for a car loan. The popularity of online shopping has exploded and is now expanding into areas as diverse as financing a car through an online lender. There are benefits to receiving your loan this way, as you have a vast array of lenders from which to choose. However, there are some things to watch out for, as scammers have found this niche to be very lucrative.
The two most common scams are the Up-front fee scam and the Guaranteed loan scam. How do they work?
**Before we get into the signs of a bad loan lender, if you are looking for legitimate loan offering platforms you can check out the Scam Detector’s verified partners: Lending For Bad Credit, Life Loans and LoanMax. Try them and let us know if they are still awesome and trustworthy.
Watch the video below to see in action the sneaky Car Loan Up-front Fee scam exposed:
The Up-front fees scam asks the purchaser to deposit fees upfront to obtain the loan. Requesting any up-front funding – with the exception of a modest application fee – is never something you should have to pay to obtain a loan, whether online or in a bank.
The Guaranteed loan scam makes people with less than stellar credit believe that they are the only lender that will give them a chance. High-pressure tactics, a lot of “guarantees” thrown around, and additional advantages are the hooks that catch the victims into the scammers’ net. Of course, their interest rates are astronomical and they usually tack on all kinds of extra hidden fees for use of their services.
Bad Credit Car Financing Scam: How To Avoid
Before completing any application online, which always contain sensitive information, make sure you are on a secure site, as referenced by the https: address. Do your homework and compare shop loan sites before making your decision.
Never make any loan payments until you are sure your loan has been approved and you have verified the bank with the FDIC.
If you are looking for online sources for a car loan use only reputable companies such as Web2Carz or Auto YES, both offering free quotes. According to online reviews, they are some of the best agencies out there, with services in the United States and Canada.
Bad Credit Car Financing Scam: How To Report
Warn your family and friends about the Bad Credit Car Financing scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
How to protect yourself more:
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