Thousands are searching for personal loans for bad credit and often they aren’t able to use standard or traditional lenders. It’s certainly becoming a problem for many and the truth is it’s not getting any easier. As with anything in life, scammers are waiting to take your money and it’s those people you really have to avoid. However, do you know how to spot a personal loan scam? Maybe, the following might help you to potentially spot a scam and avoid it. See more!
Asking For the Loan Fee Upfront
In most cases, the loan fee is added onto the payments. For example, if a lender were to set their fees at fifty eight dollars and you borrowed two thousand dollars, interest would be added onto the loan amount along with the fifty eight dollars loan fee. That amount would be collected via the loan payments rather than upfront. If a lender wants payment upfront, be very cautious as it might not be legitimate. You can find genuine loans for bad credit but you do have to be extremely careful nonetheless.
Lenders Aren’t Asking For Proof of Income or Payment History
It’s not that uncommon for some poor credit lenders not to dig deep into your credit history but they still should be asking for some assurance of payment. For example, most bad credit lenders will ask for proof of income such as a pay stub; or some form of assurance you have the means to repay the loan. If you’re choosing a traditional lender such as bank then they will definitely look at your credit so that they can be sure you’re not so much of a bad risk. Personal loans for bad credit usually require minimal checks but checks nonetheless. No proof being asked of employment or credit checks could be a sign of a scam brewing.
Dozens of Complaints within the Past Year
As most borrowers will tell you, researching the lender before you use their services is vital. If you do some light research and there are lots of complaints or negative reviews it might be a sign there’s a scam somewhere. You really have to watch out for these things so that you aren’t getting scammed. Even with loans for bad credit you have to be careful. It’s easy to get scammed so you must be careful.
Their Website Isn’t Secured
Personal loans for bad credit are useful. More people are going online to apply for a loan and there are lots of lenders online too. One thing which you should do is to go online and check out the type of website the lender has. It might look authentic and genuine but if their site is not secured, it’s a red flag. You have to be cautious of any website that isn’t secured.
No Registration with the State
Any lender should be registered as a business and have a license by the state to operate. If the lender you choose doesn’t have a license or haven’t been registered with the state it’s a major concern. You never know, the lender might be trying to scam you. Anyone not licensed by the state and offering their services as a lender should be avoided. Personal loans for bad credit can be scams too, so you must do your research. Click here for more information: https://www.wikihow.com/Avoid-Loan-Scams
Requesting a Debit Card
Prepaid debit cards are something to be careful of because in the hands of a scammer, they can do all sorts with it and you can lose a lot of money. When you are looking at lenders that offer loans for bad credit and they ask for a debit card, it’s something to be wary of. This is something which is a red flag and you should be extra cautious over what details you’re handing over.
It doesn’t matter if you have just requested more information about potentially taking a loan with the company, if they continuously harass you to go ahead with your loan application; it’s something to be wary of. It’s not an assured fact that the lender is a scammer but they really shouldn’t be putting on too much pressure on you. It’s not ideal and it’s something to be very careful of as well. Personal loans for bad credit can be great but you need to be careful which lenders you use.
Avoid the Scammer
When you are thinking about taking out a loan, you have to ensure you get the best. It’s important to get a loan that helps your finances as well as offers a competitive rate but of course, it’s easy to jump to the wrong conclusion and pick a poor loan. You absolutely have to ensure you avoid a scammer so that you don’t lose your money. It doesn’t matter if you’re looking for loans for bad credit or something else; you need to ensure you know how to spot a scammer.