“Recognize and Avoid Personal Loan Scams: 8 Key Indicators”

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In this article:

• The Lender Guarantees You’ll Be Approved
• The Lender Pressures You to Act Immediately
• The Lender Demands an Upfront Payment
• The Lender Asks for a Lot of Personal Information
• The Lender Calls or Texts You First
• The Lender Isn’t Registered in Your State
• The Lender Doesn’t Have a Physical Address
• The Lender’s Website Isn’t Secure

Recognizing Personal Loan Scams

Personal loan scams can be particularly harmful, especially when you’re in urgent need of funds. Instead of receiving the loan you need, scammers may take your money or personal information, leaving you in a worse situation. If you’re seeking a personal loan, it’s crucial to be aware of these eight warning signs of a scam.

The Lender Guarantees You’ll Be Approved

Legitimate lenders will verify your identity and ability to repay a loan. If a lender guarantees approval without any checks, it’s likely a scam. Preapproval and prequalification can give you an idea of your chances, but they are not guarantees.

The Lender Pressures You to Act Immediately

Scammers often create a sense of urgency to make you act without thinking. They might threaten to withdraw the offer or promise a low interest rate only if you apply immediately. Avoid making decisions out of fear and consider other options.

The Lender Demands an Upfront Payment

Advance-fee scams involve asking for an upfront fee in exchange for loan approval. Legitimate lenders may charge application or origination fees, but be cautious if there are other red flags.

The Lender Asks for a Lot of Personal Information

Some scammers use fake loan applications to collect personal information for identity fraud. Be wary of lenders asking for unusual personal details and watch for other signs of a scam.

The Lender Calls or Texts You First

While legitimate lenders may advertise or send preapproval letters, scammers often call or text you directly. Be cautious if you receive unsolicited loan offers via phone or text.

The Lender Isn’t Registered in Your State

Legitimate lenders must be registered in the states where they operate. Verify the lender’s registration through their website or your state’s attorney general’s office.

The Lender Doesn’t Have a Physical Address

Even online-only lenders should have a physical address. Scammers often avoid listing an address to remain anonymous. Verify the address matches the state license.

The Lender’s Website Isn’t Secure

A secure website is essential for protecting your personal information. Look for “https” in the URL and avoid sites that your browser flags as unsecure.

What to Do if You’ve Been Scammed

Falling for a scam can be distressing, but you’re not alone. If you’ve been scammed, you can:

• Try to reverse the transaction if you paid with a credit card, bank transfer, or P2P app.
• Report the scam to the FTC at ReportFraud.ftc.gov.
• Report identity theft at IdentityTheft.gov and add fraud alerts to your credit reports.
• Secure your accounts by changing passwords.

Get Matched With Legitimate Personal Loans

There are many legitimate personal loan companies. Comparing options from multiple lenders can help you find the best terms. O1ne Mortgage can assist you in finding the right loan for your needs. Call us at 213-732-3074 for any mortgage service needs.

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