Loan Scammer - 6 Warning Signs of Personal Loan Scams

There are many reasons why you need a personal loan. A Personal Loan can be quite handy when you’re looking for some quick cash in cases of emergency or even it can be for non-emergencies like home renovation or marriage. These days, you can easily apply for personal loans online because they are very convenient and you can get quick approvals for this. 

However, a Personal Loan is also one of the most common ways for fraudulent lenders to trap you in their loan scams. Being aware of the most common signs of a personal loan scam,from this you can 

protect yourself and your money.

6 warning signs of Personal Loan scams 

1. Loan offered with no credit check

You can be sure this is a personal loan scam if a lender offers you a personal loan and says there will be no credit check required, or approves your loan too easily and quickly without asking for your previous financial papers. They assure you to get the best source for getting a loan at the time you have bad credit also. If a lender specifies these things then you may be dealing with a scam. Just stay away from such lenders.

2. Asking For an advance fee

If your lender asks for an advance fee for processing or document verification, in cash or to be transferred to them before your loan has been approved, then it is highly likely that they might be scamming you. It is correct that such a fee is usually required but genuinely banks mention this in the loan agreement and never ask for it on the basis of a verbal agreement.

3. Lender has no physical address

Marketplace lenders are conducting their business online; besides they still have a physical address where their employees work. If the lender claims to be online only, then you are facing a personal loan scam. Even if the lender displays a physical address, you should still check it out on Google and be sure about that address. Sometimes a money lender insists on coming to your home to discuss the loan details and does not have a physical address, so beware, it might be a loan scam.

4. Uses Odd means of communication

Mostly reputed banks and third party lenders advertise their loan schemes through print ads in newspapers and on television. They would occasionally call you or come knocking on your door asking whether you require a Personal Loan. If this happens, then it is most likely a scam.

5. Lenders offers limited time or urgent applications

If a lender induces you with rewarding Personal Loan offers and pressures you to apply for loan within a time limit or the offer might expire or give deadlines to sign on loan, then it might very well be a loan scam. Lenders that use such high-pressure tactics. This is a well-known technique used by scamsters so that you have no time to do a background check on them. It may be a plan to get you to make a rash decision.

6. The Website is not secure

Before communicating with any personal loan lender. You first visit the lender website and look at their website address, there you will find this at the top of your browser. Look for the “https” and a padlock symbol next to the website address wherever your personal bank details are required. This ensures that the web page is secure and no one can steal your data. If the padlock is not present, then it is likely that the lender is scamming you.

Thus, keep in mind these seven warning signs that can protect you from Personal Loans scam and always approach reputed companies for your financial needs.