Scam Alert: 3 Ways You Can Avoid a Loan Scammer
Personal loan scams are common when it comes to stealing personal information from people inquiring about personal loans. Presenting themselves as financial institutions, loan scammers may often contact you under the false pretense of qualifying for a loan you never applied for.
Once they collect your sensitive information and fees, they’ll disappear without a trace and without having extended the loan afterward. The good news is there are three ways you can avoid a loan scammer and remain on high scam alert!
Continue reading to learn more about the best preventative measures you can take to avoid these fraudulent lenders.
Disconnect From Unsolicited Calls
A legitimate lender may only reach out after you first inquire about a credit. A major warning sign in loan scams is that scammers will make unsolicited calls to people they believe would be good targets.
Fraudulent parties will request information up front and create urgency to collect information they believe can help them access your accounts. If you have yet to apply for a loan, take any inquiries with a grain of salt and report all suspicious activity to your local authorities.
Do Your Research on the Company
Before applying for a loan with any company, you want to ensure that the business is genuine and engages in legal financial practices. Inquire about the lender beforehand and gather details on loan options, rates, and associated charges and fees so you don’t run into any surprises later on.
Sometimes, lenders won’t maintain transparency with borrowers, resulting in misunderstood terms and inconsistent contract details.
Never Pay Up Front for Fees
Another classic tactic scammers may use is offering you a loan that requires an up-front payment to access. These individuals will also promise to extend the credit once they receive the first payment.
Reputable and genuine financial institutions will never coerce you into sending funds in order to release funds at a later date.
The sad truth is that scammers exist and are always hunting for someone vulnerable who will believe in their illegitimate practices. Fortunately, you can use these ways to avoid loan scammers and protect yourself from detrimental consequences to your financial health.