7 Personal Loan Scams Signs To Avoid Being Scammed

Personal loan scams

A personal loan can help you sort out, pay off emergency debts or upgrade some items of choice, sometimes it might be tempting to go for it because of scams from fake companies that are out, they are ready to steal from you or steal your identity, instead of lending you funds to cover your expenses, they take away. It is then important to know some personal loan scams signs to keep you safe from being scammed.

It will be very bad to run into a fraudulent personal loan company, it hurts and you will get more hurt, it is very important to take your time when looking out to take some personal loan to avoid personal loan scams runs most times on the internet by businesses with no physical address.

Not all online financial services businesses giving loans are scammers, you shouldn’t misquote our view, you only need to be careful as the borrower, and here are the things to look out for before you borrow.

What are personal loan scams?

Personal loan scams are done to those who are looking to acquire a loan to pay of debt or solve pressing financial problems,  in a quest to get financial help through loan get scammed by financial Internet-based fake money lenders.

7 possible Signs Of A Personal Loan Scam To Know

1. The Loan Is Sure

Any good financial company will likely look into your financial history, if you are told that the loan you are about to get is risk-free then you need to think twice, lending money has its associated risks, so often lenders will want to know if you will be able to pay back the loan.

In a nutshell, don’t secure a personal loan from a lender who guarantees that you will get the loan under any circumstances.

2. Good Lender Check Your Credit Report

A serious-minded lender will surely look at your credit reports before deciding whether to give the loan or not.

Your credit report says a lot to the lenders whether you are going to be able to pay if you are provided the personal loan.

If any lender who wants to give you a loan is not ready to check through your credit reports, stay away from such lenders.

3. The Lender Is Registered To Conduct Business In Your Locality.

Business registration at the state or federal level is compulsory before the commencement of business operations, lenders who know what they are doing make sure every one of their dealings is legal.

Check if the lender is duly registered with the appropriate bodies or you can go through the office of the attorney general of your state to know if the lender is legit or if it should be avoided.

Also, check if the personal address given to you by the lender is valid, you can do that using Google maps, this will help avoid being scammed.

4. Legit Lender Don’t Give Offers Over Phone, Mail or In-person

Avoid any lender who calls, send an email,l or come directly to your doorstep to offer you a personal loan, legit lenders don’t do this, and if you are not careful you may fall into the wrong hand if you fail to recognize these things.

Real lenders use online resources like media advertisements to reach prospective people who may need a personal loan.

5. An Unsecured Lender Website

Every serious lender who has a website must be secured and these are the two things to check to know

  1. A padlock symbol next to the lender URL and
  2. HTTPS instead of HTTP,

 if these two things are not found then the lender website is not secured and this may be a scammer portal that is looking to steal credit card information from you.

6. Avoid Deal or Pressure from Lenders 

If any lender pressure you when trying to give you a personal loan, like give you an automated to secure the loan or having to do with deals and expiration of the deal just walk away.

They should not be any form of urgency in securing a personal loan, any legitimate lender won’t do this, you should know you are stepping to be scammed.

7. The Lender Ask For Upfront Payment 

No legit lenders will ask you to make an upfront payment before the loan can be given to you.

If any lender asks you for this, stay off immediately, it is a great sign of a money scam.

Most real lenders will only take out necessary fees from the total loan amount before disbursing to you.

You will never be asked for an upfront payment from true lenders.

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