Avoiding Scams When Looking for a Loan with Bad Credit

There are many offers that offer to give a loan to people with bad credit.

Are they genuine? Some are, while many are scams. Usually you are asked to send a fee that can be called various things like service fee, originating fee etc. You send in the fee and wait to get your loan which does not come through, no surprises there. So the agency that offered to give you a loan disappears and there is nothing that you can do about it. These kinds of scams are common on the internet, where there is no physical address to the company that is professing to give you the bad credit loan. You are expected to pay the fee upfront using your credit card.

How do you determine that the bad credit loan offer is a scam?

There are typical signs to a bad credit loan scam.

A bad credit loan scam usually offers to approve you for the loan in spite of of the information present on your credit report. They promise you a loan a matter what negative information is there on your credit file and matter how bad your credit rating is. To anyone who takes time to think about this clause that he carefully will realise that this is not quite possible. Any lender who is willing to lend money to someone wants that money to be paid back. A lender who this is not to be concerned with the information on the credit report and the creditworthiness of the lender has something else going on apart from being a legitimate creditor. Is

the next obvious sign of a bad credit loan scam is a request for some type of upfront payment. It is illegal for a lender to demand money upfront before approving the loan application of a borrower. There are exceptions however such as when you’re applying for a mawkish long. When applying for a mortgage loan lender might request a small payment for the credit check fee. But even in this case the fee is requested for a purpose and does not accompany a guarantee of the loan.

Another common bad credit loan scam is when the scammer asks you to call of one — 900 number. Once you call upon this number you’re asked to choose your loan and are kept on the phone for a long time so you incur charges on the 900 number.

A bad credit loan may also ask you not to send money or correspondence through U.S. Postal Service. This is because the US has stringent and strict Postal Service laws against fraud. Which is why they will either ask you to make the payment online through your credit card or send them money through a wire transfer. The commonest places where a bad credit loan scam which makes from his Canada or the Caribbean. However, just because the loan originates from the place is on need that it is legitimate. Do not part with sensitive information such as your Social Security number, bank account number or credit card number without first verifying the credibility of the company who is asking for this was the information. Do not provide any personal information without first receiving some form of written documentation on the bad credit loan and the service that the company provides.

If you have been a victim of a bad credit loan scam contact your local law enforcement as soon as possible. You should also notify your state Atty Gen and the Federal bureau of investigation if the company is from another state or country. You should also lodged a complaint with the better business bureau as there are lots of consumers who check the reports present with the better business bureau before doing the transaction with an organisation. Filing a complaint with the better business bureau will help want others and avoid the trap set by the bad credit loan scammer.