One consequence of bad credit is that it is difficult to borrow money. Lenders consider you a risky lender, which is likely to involve lending, so many will reject your application.
They can range from at least $ 50 or up to several thousand dollars depending on the amount you are borrowing
Because of this, bad credit borrowers are often targeted by “companies” that offer bad credit loans. Unfortunately, these loans are often scams with the intention of tricking you into giving up some funds. In a bad credit loan arrangement, the “lender” often promises to send you the loan, but only after you first send the loan repayment fee.
A “lender” can call this a loan origination fee, a loan security fee, or even securing a loan. You send money and wait for a bad credit, but never receive it. Unfortunately, by the time you realize what is happening, your money is long gone and the lender has not been found
It is against the law that a company promises to lend you money in exchange for a fee – this is called “advance loans.” Not only do legitimate lenders not require payment to lend you a bad credit loan, it does not make good financial sense to pay money to borrow money.
Signs of Bad Credit Loan Scam
The most obvious sign of a bad credit loan is a scam is a prepayment request. (Please note that a mortgage or auto loan will charge a mortgage or auto loan or closing costs.)
Advance fees and other bad credit scams usually guarantee that you will get a loan, even before you check your loan. They promise to provide you with bad credit regardless of your credit history, income or previous bankruptcy. However, no legitimate lender will give you a loan without some guarantee that you will repay the loan.
One sign you are dealing with is threatening is that the company requires / requires you to send a prepayment in some way other than U.S. mail and a personal check. Because there are strict mail fraud laws in the United States, scammers do not usually receive mail payments. Instead, they often require that you pay them a payment. Scammers are increasingly asking victims to send money through Green Money MoneyPack, which is another method that is difficult to track once funds have been sent.
Look out for lenders in foreign countries like Canada or the Caribbean. These are the two most common places where bad credit origins appear to originate. Just because a loan comes from somewhere else than these two places does not mean it is legitimate. Carefully compare credit with other criteria to confirm bad credit.
Beware of companies seeking your Social Security number, bank account number, or credit card number without written loan documentation. Avoid giving sensitive information over the phone unless you have made a call to one of the jobs you know and trust.
If you were fooled
If you have been the victim of a bad credit loan fraud, contact your local police as soon as possible.
You should also notify the Attorney General, the FBI, if the company is from another state or country, and the Federal Trade Commission. It is also a good idea to get the Better Business Bureau informed about fraud to alert other consumers about the trap.