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6 Personal Loan warning

How to avoid scams when looking for a personal loan

Getting a personal loan can be dangerous. The world is full of scammers, and one has to be wary of them. One can more safely get a personal loan if they are aware of the warning signs that a scam is likely.

A scammer will often seem to be willing to give the loan away too easily.

1) The lender does not ask for a credit check

A lender who is not a scammer will almost always ask for a credit check. Without asking for credit checks, a lender would lose money off of loans that are not repaid.

A legitimate lender will never let anyone borrow money without a credit check. If the lender claims that they have some sort of technology for estimating your ability to repay the loan without a proper credit check, they are likely to be trying to trick you.

More than anything else, never take a lender who claims to be willing to send you money without a credit check seriously.

The exception to this is a payday loan that must be repaid within a week or two. A very short term loan may in some cases be given away online without a credit check.

2) Don’t trust unregistered lenders

If a lender is not registered in your state, they are too likely to be a scammer to trust.

If they claim that they do not need to be registered because they operate only online or because they operate out of your country, do not trust them!

They should be registered in your state or in your country. Otherwise, they are running an illegal business and are likely to be scammers.

3) Don’t trust anyone who asks for money upfront

If they ask for money in advance before they process your loan, there is a good chance they will take your money and never talk to you again.

An online job offer that asks for money in advance is VERY likely to be a scam, and a personal loan offer is no different.

4) Don’t trust those who offer guaranteed approval

Any loan company that is making a profit and being run honestly is going to have to reject many of the people who ask for loans.

A loan company has to reject many of its applicants in order to stay in business. If an honest loan company would guarantee approval to ANYONE then they would lose money.

Therefore, a loan company offering guaranteed approval is sure to be a dishonest loan company.

5) Don’t trust anyone that contacts you through random phone calls

There are more phone scammers out there today than there ever were before. If a loan company calls you up at random to offer you a loan that you did not request, they are very likely to be scammers.

People who call, text, or e-mail strangers to offer them loans or other offers are likely to be attempting fraud.

6) Do not trust the lender if you cannot find their physical address

A lender’s personal information should be easy to find. You should know the physical address of the company involved.

If the address is merely a post office box and not a proper address, it is likely to be a scammer. Searching online to determine whether or not a business is a scam or not is a good idea as well.

Sometimes, a quick google search can reveal a scam. If the company is either hardly known to a google search or is claimed to be fraudulent you should immediately stop dealing with them.

Conclusion

So these are signs, that should be aware of for getting a personal loan, ask someone or search on Google to get a quick answer whether to take a loan from the person or not.

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