MoneyMoments | MidFirst Bank
Loan Scams

Loan Scams

Imagine finding yourself in a financial crisis and needing a quick loan. A web search results in pages and pages of “instant loans.” Although you may feel desperate to sign on the dotted line, carefully research the lender to avoid unfavorable terms or worse — a loan scam.

Scammers often prey on consumers in financial distress or with poor credit. The guarantee of a loan regardless of your credit history is a sure sign of a scam. Legitimate lenders review your credit report and validate the information in your application before making a loan decision. Never provide personal information or wire money to an unknown lender in response to the promise of a loan. The loan will not materialize, your advance fee will be lost and your personal information may be in the hands of an identity thief.

Also, beware of companies offering to fix or erase your credit for a fee. No one can erase accurately reported negative credit information. Any actions available to a credit repair service are available to you. If you discover an error on your credit report, follow the dispute instructions provided by the three credit reporting agencies.

www.equifax.com
www.experian.com
www.transunion.com

Take these steps to help ensure you don’t fall for a loan scam.

  • Research the lender. Check with the Better Business Bureau and make sure the lender’s website is secure. The lender should be registered with the attorney general in your state.
  • Avoid lenders who guarantee approval despite credit rating and do not require a credit check.
  • Avoid lenders who require upfront fees or unusual payments.
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