Protect Yourself: Detect and Avoid Loan Scams

LoansTo prevent being a victim of loan scams, it is important to know the signs that what you are agreeing to is potentially fraudulent. People fall prey to such schemes due to lack of awareness. When people need money quickly, some often overlook the warning signs that someone is going to take money from them.

Be Vigilant

You may need a loan for mortgage, business, education or debt consolidation and you need it immediately. You may not even be thinking about it, but read about or receive via email offers for incredible loan packages. Even when getting the right loan for bad credit, industry professional notes that you have to verify all information provided by the lending company.

It is always best to check the reputation of the company or lender making the offer. Remember, if you think it is too good to be true, it probably is and you will need to do due diligence. Better safe than sorry.

Here some strategies to avoid becoming a victim of a scam:

  1. Never fall for loans requiring advance fee payment. This is how the con artists make their killing. After receiving the money, they conveniently disappear and the victim get empty-handed apart from the amount already shelled out.
  2. Never talk to third party consultants. When responding to ads or emails regarding loans, you might encounter the call consultants who will get your personal information and likely end the conversation with your loan being approved.
  3. Be wary if the lending company told you qualify for a loan even when you are aware of your poor credit history. The scammer will always say this involves paying a fee, which will make it easier to get your application approved.
  4. When you received some offers for loans via email, never provide personal information especially social security numbers, credit card, or bank account details. Sometimes, the company soliciting may be familiar to you but it is best to check if such an offer is valid.

Loans involve money. People usually need to know who is borrowing and if they are capable of paying back the amount borrowed. Paying fees in advance defeats the purpose why you need to take out a loan. Be very wary because the gullible are often the victims of loan scams.