Car Loan Approval

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?

Watch the video below to see in action the sneaky car loan Up-front Fee scam exposed:

Car Loan Approval Scam In The News Video

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.

car loans for people with bad credit

 

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.

You can get a free quote from both HERE(Web2Carz) or HERE (Auto YES) and then compare. You can also find out more about loans and financing options on their websites.

 

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:

Report Scammers To the FTC Here

 

How to protect yourself more:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You’ll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.

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Tyson Richarh

Here is another fake testimonial I received… unsolicited. When are they gonna stop??? "Hello everyone, My name is Tyson Richarh, i live in Chicago, Illinois United States. Am here to testify on how i got a business loan of $850,000.00 dollars from Mr Mike Franklin of Wiley Knight Loan Company (wileyknightloancompany@gmail.com) a God fearing and honest lender after i applied two times from various loan lenders who claimed to be real loan lenders,i thought their lending where real, they rip me off my hard earned money, i lost $4,520.00 dollars until my lawyer introduce me to Mr Mike Franklin the… Read more »

Kate Lisa Credit

This scammer is hilarious. She wants to be a reputable business, but has a hotmail email address lol Watch out! "Welcome To KATE LISA CREDIT SOLUTION Email : kate——@hotmail.com Mobile : +234705——- Contact : Mrs Kate Lisa Do you need a loan? Are you in a financial crisis or needs money to start your own business? Do you need loan to settle your debt or pay your bills or start a nice business? You have a low credit score and you are finding it hard to obtain capital loan from local banks and other financial institutions? Here is your chance… Read more »

Mr Frank

How do we stop all this spammers sending messages?! Beware of this other crook, below: "Do you need an urgent loan from us, we render all kinds of loan to individuals, according to the way that you need the loan, we have different kind of loan, such as business loan company loan student loan and any types of loans? email address is (banned). We can help you with the loan, If your information is cleared and you need to send us your national ID card before the loan can be approve by this company. If you’re looking for car loans… Read more »

Mr Richard Brown

Watch out for this scammer, too: "FINANCIAL EMPOWERMENT AVAILABLE NOW, APPLY FOR LOAN WITH 2% INTEREST RATE Here comes an Affordable loan that will change your life for ever, I am Mr Richard Brown a certified loan lender, I offer loan to individual and public sector that are in need of financial Assistance in a low interest rate of 2%. Bad credit acceptable,The Terms and Conditions are very simple and considerate.You will never regret anything in this loan transaction because i will make you smile. Our company has recorded a lot of breakthroughs in the provision of first class financial… Read more »

Loyd Breanna

Watch out for this scammer too: "I have just taken out my first personal loan and i must say i am extremely impressed as to how straightforward the services is. All i had to do was applied and filled out the application form and submit it! I was then told in about 10 minutes that i was accepted and that the funds has been approved and on the way to my bank after submitting the required information’s and i received a loan of $35,000 USD! Extremely impressive. Now i have my own car and also have my own business thanks… Read more »

xlcatlin loan firm

Watch out for this scammer too: "Hello, You need a comfortable loan to your satisfaction? Rate loan offer @ 3% interest rate available for local affordable and international borrowers. We are certified, trustworthy, reliable, efficient, fast dynamic and we cooperate with our customers. If you’re looking for car loans for people with bad credit or at how to get pre approved for a car loan, we can help out. We long-term credit fifty years maximum contact us at (Xlcatlinloanfirm@GMAIL.COM) LOAN APPLICATION FIRST NAME: ………………………….. GENDER: ……………………. CIVIL STATUS: ……………………… CONTACT ADDRESS: ………………………….. CITY / ZIP: …………….. COUNTRY: …………….. AGE: …………… Read more »

Banda Tibor

These scammers have no shame. Here is another fake testimonial about a shady lender…. "Good day To Every One, I am Banda Tibor and am 49years old, You Know there are so many of us that are in dire need of financial help and it just doesn’t seem that people understand our lives and financial situations what ever each of ours are! Do they? they don’t I guess !! I was in very chronic financial and terminal health situation some few months ago after all my search for assistance from friends and neighbors proved abortive and due to this I… Read more »

Susan Ramirez

Add another scammer to the list of fake testimonials. Here she is: "I am Mrs Susan Ramirez from North Carolina, USA I am here to testify of a good Loan Lender who showed light to me after been scammed 3 different times on the Internet by some kinda loan lender who are nothing but fake, they all promise to give me loan after making me pay a lot to them as charges which yielded nothing and amounted to no positive result. i lost my hard earn money a total sum of $6,500.00USD and it was so frustrating. One day when… Read more »

Wells Fargo

Another scammer, below. Beware! "I am Mr. Alex Gordon, a private money lender. I give out loans with an interest rate of 3% per annual and within the amount of $1000.00 to $500,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients,… Read more »

hanna johnson

All these scammers are making me laugh. Here is a fake testimonial below. In case you were thinking of applying for a loan: "Hello Everyone, My name is Hanna Johnson, I’m from Alaska USA, i will like to talk about the goodness of God in my life after so many months of trying to get a loan on the internet and was been scammed so i became desperate in getting a loan from a legit lender online. But as God would have it, i saw a comment from a friend Denali Elan and he talked about this legit loan company… Read more »

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