Loan scams target people who are in dire straits and likely will do anything to get their hands on some cash. Once a loan scammer has snagged a victim, they will have the borrower fill out an “application” with sensitive and personal information. The scammer will use the victim’s information to hack their accounts.
Keeping this in view, can a loan company ask for money upfront?
A caller may ask you to pay an upfront fee in exchange for a “guaranteed” loan. They may ask you to make the payment via Amazon vouchers, iTunes vouchers, a money transfer service, or some other means of payment. A regulated lender will never ask you to do this, no matter your credit score.
Moreover, how easy is it to get approved for a loan?
While it may not be explicitly mentioned on a lender’s website, it’s typically easier for someone with a good credit score to be approved for a personal loan. … If you have good to excellent credit—with a FICO® Score☉ of 670 to 850—there are a lot of good personal loan options out there for you.
Is it normal to pay upfront for a loan?
Any up-front fee you need to pay before getting the loan is a cue to walk away. Avoid guarantees and unusual payment methods. … They will check your credit score and other documents before providing an interest rate and/or loan amount and will not ask you to pay an upfront fee.
Some scammers have been known to require prepaid debit cards or gift cards from borrowers, claiming that they need it for insurance, collateral or fees. This is a scam. Legitimate financial institutions may charge a fee for your application, appraisal or credit report, but those charges are deducted from your loan.
If you’ve been the victim of a loan scam or personal loan fraud, contact your local law enforcement as soon as possible. Notify, also, your state attorney general and the FBI (if the company was from another state or country). The Federal Trade Commission and Better Business Bureau also will be helpful allies.