Advance-Fee Loan Scams
ShareAdvance-fee loan scams target those who are having a hard time getting approved for a loan and/or credit card because of their less-than-optimal credit score. Scammers will post advertisements online promising to give you a loan or credit card– no matter how bad your credit score is. Avoid phrases like, “No credit? No problem!” or anything insinuating that they will give you a loan or credit card, regardless of your credit score or past.
A legitimate lender needs your credit score to determine your creditworthiness and is required to disclose the interest rate and any fees upfront. You can expect to fill out an application and some financial institutions may charge an appraisal fee before considering loan applications. It should raise some questions if you’ve been approved for a loan but haven’t heard what the interest rates or fees are.
Protecting yourself from an advance-fee loan scam can be done by checking to see if the lender is registered in your state, searching their name or company online for previous scam reports, and hanging up on recorded sales pitches. If you find yourself victimized by an advance-fee loan scam, report it to the Federal Trade Commission and contact law enforcement immediately.
If you’re in debt, Member One Federal Credit Union wants to help. We offer free financial literacy classes at our Learning and Development Center. Check out our upcoming courses by visiting https://yourmoneymatters.corsi....
You May Also Like
We use computers and mobile devices in almost every facet of our lives. Check out these suggestions for protecting yourself against these attacks.
Dating in the digital age doesn't come without dangers to be aware of.
You’re not the only person excited about your tax return—this is a prime time for scammers. Thousands of people fall victim to these sophisticated scams each year.