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How to Protect Yourself from Personal Loan Scams

Taking out a personal loan is a popular option for people looking to raise their credit scores and help pay off bills with lower interest rates. However, choosing the right lender can be intimidating - especially with so many fraudulent lenders looking to take advantage of you.
Learn how to protect yourself from personal loan scams by familiarizing yourself with some of the most common warning signs.

They Don’t Require A Credit Check
Legitimate lenders will often run a credit check because they want to know that you’ll be able to repay them. However, a scammer is only interested in obtaining your personal information and will not care if you have a low credit score.

They Pressure You to Make Quick Decisions
Legitimate lenders understand the significance of taking out a loan and want to give you the time you need to feel confident in your decision. If you feel pressured to act quickly, you’re likely being scammed.

They’re an Unregistered Lender
It’s required that lenders register for a license in the state that they conduct business in. Do not trust any loans offered to you by unregistered lenders as they‘re in violation of the law. We suggest checking with your state’s Attorney General’s website for additional information on a lender before you pursue obtaining a loan from them.

They Make Incomplete Loan Offers
It’s required by the Truth in Lending Act that lenders provide you with all the terms of a loan. Before you commit to a loan, make sure that you know the final cost of the principal plus interest. If you notice that your offer is lacking in detail or contains spelling and grammar mistakes, we recommend looking for a different provider.

They Guarantee They’ll Approve You
Despite the allure of a loan with guaranteed approval, these simply don’t exist. Lenders know the risk of extending a personal loan and will always conduct a credit check and verify your information before approving your loan.

They Don’t Have A Physical Address
Scammers want to make it as difficult as possible for you to get in touch with them after they obtain your personal information. As such, it’s unlikely they’ll provide a physical address or any additional contact information.

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