How to Identify a Scammer When Getting a Personal Loan
Updated: Nov 18, 2021
Sometimes, life happens, and we need a little help to get by financially. Though unavoidable circumstances may put us in straits, billers won’t stop collecting, and debts continue to pile up. In these moments, it’s natural to consider personal loans as an option to move forward.
When you’re trying to get a personal loan, the last thing you want is to get scammed. Unfortunately, there are many malicious individuals out there that prey on those who need such a service. Make sure you know the signs that a ‘lender’ is actually a scammer.
The Lender Isn’t Registered in the Same State
Legally, any reputable lender is required by the Federal Trade Commission (FTC) to be registered in the same state where they do business. In general, you’ll want to verify what states your lender is registered in. While it’s possible you just reached out to a lender that does business in a different state, you should be careful about a company that isn’t listed anywhere.
Check the states where they are legally registered to make sure you aren’t becoming a victim of fraud.
They Didn’t Ask for Your Credit History
Even for lenders that specialize in helping individuals with poor credit, credit history is something that they always ask for. They need to assess your credit status and payment history from major credit bureaus. This information is how they consider what kind of loan will work best for your situation and whether or not you are likely to pay back your debts on time. At the very least, a reputable lender would ask you for income and employment information with some proof of payment history.
If they don’t care about your history, it’s usually a sign that they are trying to fish for high-risk borrowers that they can bank on with fees and penalties.
They Reach Out via Mobile or Door-To-Door
If you get a targeted ad from a lender via text or call, you may be getting solicited illegally. Even if someone visits you at your doorstep, that’s a major red flag. Lenders are not regulated to operate this way, and any offer you receive this way is likely going to ask for payment before any services are rendered.
They Lack a Secure Website
Most businesses nowadays are likely to have their own website. In fact, you’d do well to look for a lender online because this is one of the more legitimate means to seek out an offer.
Because of the nature of their operations, their platform must be secure. Check the bar where the URL of the site is and look for a padlock icon or symbol next to the bar. You can also check if their website pages load with “https” at the beginning. The ‘s’ is crucial as this shows that they are properly encrypted.
Without this, the website puts your personal information and sensitive data at risk of getting stolen by hackers.
If the ‘lender’ speaking to you hits any of these marks, they are highly likely to be scammers. It would be best to steer clear immediately and reach out to a legitimate lender. If you’re careful about who you reach out to, you should be able to find a solid loan that works for what you need.
Reach out to Central Loan & Finance Atlanta if you’re in need of legitimate personal loans in Atlanta, GA. We have served the city since 1967 and offer our help to individuals even if their credit score is low. Apply today!