Scams are everywhere nowadays, in-person and online. You cannot avoid them unless you know the top red flags of online scams. Once you know these, you can choose the right personal loan for you instead of a personal loan scam that could drain your finances. Even if you find yourself dealing with the aftermath of a personal loan scam, you have legal options. Talk to one of our Tennessee bankruptcy lawyers if you are on the brink of bankruptcy because of a loan scam.
HOW TO IDENTIFY PERSONAL LOAN SCAMS
Just like any other scam, personal loan scams take many forms and are quite deceptive. It can be frustrating being turned down by loan lender after loan lender until you finally find one that not only accepts you but offers a great deal. No matter how tempting this is and how much you desperately need that loan, do not fall for this.
Knowing the top signs of a personal loan scam can help you avoid serious financial mistakes. As it turns out, all scam artists think the same. So identifying red flags for personal loan scams is not too difficult. The most common personal loan scam red flags include things like:
- Requests for your personal information at an early stage or in shady ways
- Promising you great deals with little evidence to back this up
- Telling you to wire your money to one person rather than an official loan business
- False promises in general
- Requiring you to pay any fees in advance
Beware, these red flags also come in many forms. For example, requiring a fee in advance may be termed an application fee. The reality is that no legitimate loan lender asks for an application fee, especially not an outrageously overpriced application fee.
False promises are probably the most commonly used method in these scams. No official loan lender can tell you your loan will be approved no matter what when they have not even gone through the review process yet.
AVOID THESE PERSONAL LOAN LENDERS
Personal loan lenders who use copycat names, make loan offers over the phone, and never ask for your credit history are probably personal loan scammers. For one, it is illegal to make a loan offer by phone in the United States, and two, professional loan lenders almost always consider your credit history. Your credit history is a major determining factor in the approval process for your loan.
One of the fastest ways to spot a scammer is by looking up reviews of their personal loan company. No reviews or bad reviews are red flags. If the loan lender is not registered in your state, that is another red flag. Not everyone realizes that the same thing can happen in the form of small business loan scams.
BANKRUPTCY LAWYER IN KINGSPORT, TN
Feel free to talk to us if you are stressed about your finances and find yourself slipping into bankruptcy. You can contact Tom Bible Law by dialing (423) 690-7712 to talk to us for a free consultation. Our legal team of Tennessee bankruptcy lawyers has served clients in Tennessee cities like Chattanooga, Kingsport, and Tullahoma. Let us answer your most pressing financial questions.