Bad Credit and Personal Loan Scams. How Can You Avoid Them?

Even if they say that desperate times ask for desperate measures, it is no less true that people should pay attention to what’s coming to them in terms of cons and scams. Specifically, if somebody is going through rough times, has credit bills shooting through the roof, has emergency payments that can’t be easily covered, faces the embarrassing situation of being called by creditors or service companies and, above all, bears the burden of a bad credit, probably the only way out of such financial disaster is applying for a quick 2000 dollars loan, or a bigger one for that matter.

No matter how strict are the rules and the laws nowadays, there are still con artists and scammers out there who take advantage of peoples’ desperation, naivety or lack of proper information and manage to push them to the verge of bankruptcy, while they make easy money on the side. In the business of quick personal loans granted even to people with bad credit, there are some ways borrowers can verify the legitimacy o f the lender and the reliability of the business and today we will sum – up the most common warning signs that you are dealing with personal loan scams.

1. Paying an upfront fee to get a loan

Many loan scams begin with asking a potential borrower to send some fee to an individual account, representing perhaps application fee, evaluation fee and so on. While it is absurd to pay money to get money, this is not how things work in a legitimate business. Reliable companies, if fees are necessary, will roll the fee into the loan. Moreover, you should be worried about such personal loan scams if somebody tells you to wire the money in exchange for a guaranteed loan, even if the lender knows nothing about your credit, employment status and didn’t check up on you.

2. Mind-blowing small interest rates are guaranteed

As we said before, a quick 2000 dollars loan comes with some costs that are not negligible. Whoever promises you payback rates that are so small you wonder how banks still survive, there is something fishy about the whole deal. Legitimate companies do try to practice low rates and that’s perfectly legal if we’re talking about the quick unsecure loans average. You know how they say, if it sounds too good to be true, it probably is.

3. You start feeling pressured and pushed

Personal loan scams, just like stock scams, come with a hint of pressure. Somebody might call you or e-mail you telling you have to take their offer as nobody else will give it to you, will harass you with pompous looking and sounding e-mail, deadlines and “special offers” will be shoved down your throat until you crack and go on with the show. Legitimate companies don’t push clients, don’t give them ultimatums, don’t offer prizes, gifts, special treatment and certainly aren’t hunting down clients. There are legit marketing campaigns, granted, even banks develop some sort of stimulation campaigns, but don’t think for a second that somebody will give you money for free, the chance to “win” a car and almost inexistent loan interest rates  without knowing if you are employed or not.

How can you make sure you’re not falling for a scam?

Personal loan scams can be easily checked if you don’t succumb to the desperation and take some time to make a wise decision. The Federal Trade Commission is a good starting point to begin your search, you can check a lender with your local financial authorities, you can phone call the Better Business Bureau, you can check the USPTO infringements section and see if a company doesn’t use a copycat name to misguide you into trusting it and so on. Indeed, there are few personal loans scams left, as there is an increased awareness at the population level regarding the side effects and risks determined by these scams, but you can’t be too sure, can you, and scammer always find a way. Proper verification will give you your peace of mind and a no fuss 2000 dollars loan from a legitimate company, even if you have a bad credit and need help.

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