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Is a reputable personal loan lender a scam?
Are advance fees a scam?
What is a loan scam?
What are the most common personal loan scams?
Sep 3, 2021 · How the scam works: You receive an email advertising a guaranteed loan. The email displays a logo and contact information for what appears to be a legitimate loan company. Before...
To prevent scams, take care of your online accounts as carefully as you would take care of your cash. Encrypt your data where possible, and do not use unprotected internet connections. Use a strong password and an authentication app.
Mar 15, 2024 · How you can spot personal loan scams and what to do if you're a victim + our top tips to help you find a legitimate personal loan.
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Jun 7, 2023 · These are some examples of common personal loan scams to watch out for: Advance-fee scam. A scammer charges an upfront fee for a loan that never materializes. Phishing. Scammers use emails or...
- 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.
Dec 4, 2023 · 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.
Mar 29, 2024 · Quick Answer. Some scammers offer fake personal loans to steal personal information or collect upfront fees from victims who apply for them. You may be able to avoid scammers if you can spot some common red flags, such as a guarantee that you’ll be approved. 1. The Lender Guarantees You'll Be Approved. 2.
