How to Smell Personal Loan Scams from Two Miles Away
4 Ways To Avoid Personal Loan Scams
Are you in need of cash but worried about a personal loan scam? Since the beginning of the internet, loan scammers have come up with a plethora of ways to scam victims into giving them money. They often try to cover up their tactics by claiming they have the necessary insurance policies and application fees. However, the Federal Trade Commission has been hunting down these questionable companies, but many are still at large.
Getting a loan via the internet is a viable way of getting money, but you have to be smart about who you're dealing with. You'll be able to save yourself money and prevent others from falling into the same traps.
Continue reading to learn more about how to avoid loan scams.
1. Upfront Fees
A lender that charges upfront fees for its service is an instant red flag. Scammers will often try to portray these as application fees, but they truly just want to get money and run.
If you think about it, it doesn't make much sense to put up money when you're trying to get money. Real lenders will disclose their fees and typically include them within their interest rates.
2. Wire Transfers
Similar to upfront fees, wire transfers will immediately let you know that you're being scammed. If someone tries to get you to wire transfer money, it's best to stop negotiating with them.
Whenever you're dealing with a lender, you should find out what their institution's address is. You can contact the Attorney General within that state to see if it's a real business, saving you from potential losses.
3. Lack of Research into Your History
While there are some reputable lenders that offer no credit check services, you should be wary of those that insist on giving you an instant loan without any verification first. When lenders offer you a loan without looking into your history at all, be sure to do your homework and understand the terms.
Most loan institutions are interested in seeing the loan histories, income, and payment histories of their clients. They want to know that their clients will be able to repay them.
4. Negative Reviews
The internet is a place where you can find information about anything, including loan institutions. You can quickly discover personal loan fraud by looking into the institution that's trying to offer you a loan. Online loan scams are also common, so you'll be able to read stories from other people. If you see that institution that you're dealing with has negative reviews, read them to learn about their shady practices.
Save Money by Avoiding Loan Scams
If you're someone that's looking to get extra cash but is worried about someone scamming you, use the advice in this article to avoid loan scams. You'll be your money while ensuring that you're dealing with a professional.
Be sure to avoid dodgy characters that don't seem interested in learning about your financial history. If you see any red flags such as bad reviews and upfront fees, just avoid that institution and focus on those that are reputable.
Feel free to browse our financial section to read more articles that will help you control your money.