If a lender doesn’t care about this important step in the process, it’s likely not legit. When you apply for a personal loan, you’ll typically get two credit checks: a soft pull to confirm you exist and a hard pull to see your history. A great offer isn’t worth risking your personal info. Most lenders encrypt the information you send to it online with 128-bit or 256-bit SSL. Look for a little padlock to the left of your address bar to confirm the site is safe. The lender should also clearly display a physical location and its licence information online. When you call or email a legit lender, you should be met with decent customer support that’s ready to answer your questions. Use these tips before signing a contract to be sure you’re dealing with an upstanding business. No legitimate lender will ask you pay with a gift card, and if your lender is pressuring you to do so, you should find a new loan. Paying a lender with a gift card is the same as paying with cash - once the money has been used, it’s nearly impossible to trace or get back. Asks for payment in the form of a gift card.It’s not unusual to come across “pre-approved” loans when you agree to a soft search, but a lender will want to carry out a full, “hard” credit search before making a formal loan offer. Scammers may lure you in with guaranteed approval to discourage you from shopping around or so they can collect fraudulent upfront fees. For approval, a lender will typically check your credit and verify your information. There’s no such thing as a guaranteed loan. A lender asking for payment before it’s processed your application is a scammer looking for a quick buck.

Loans demanding “processing,” “insurance” or any fees before approval are a scam. Pressure tactics are designed to drive you to act quickly, before you’re able to spot a scam in progress. Legitimate lenders offer steady rates that depend on your credit. If you’re faced with an “urgent offer,” you’ve likely found a scam.

Your offer expires soon - and you must act now.

Scammers want to make it difficult for you to get in touch later, thus avoiding any legal action you might want to pursue against them. If a lender doesn’t provide a physical address or contact information, this may be a sign that it’s illegitimate. Unexpected credit checks could also be an indicator of potential fraud. It’s always best practice to check your credit score on a regular basis. A scammer typically doesn’t care about your creditworthiness because they’re simply after your personal information. If a lender isn’t interested in seeing your credit score, this may be a red flag. Most legitimate lenders will check your credit to determine if you’re able to repay them: A high score means you repay your debts in full and on time. To help you avoid getting ripped off, we cover the signs of a personal loan scam and what you can do to avoid them. If you don’t like your bank or credit union’s terms or have bad credit when applying, an online lender might cater to your specific needs.īut going online comes with a downside: It’s harder to tell a scam from a legitimate offer. You can get personal loans from a lot of places these days.

Late repayments can cause you serious money problems.

Google money pro scam