1. No-credit-check personal loans
No-credit-check loans are appealing to borrowers with poor credit who may struggle to secure loans with legitimate companies. Some are so relieved to find a company willing to work with them without asking any questions about their past that they don’t do their due diligence before signing up. It is only after they hand over their personal information and possibly some fees to the scammer and never receive the funds they were promised that they realize their mistake.
All lenders assess your credit when you apply for a loan. Some legitimate lenders offer loans for borrowers with poor credit, but they still run a credit check and use it to determine your interest rate.
If you come across a lender offering a personal loan with no credit check, avoid it.
2. Personal loans with upfront fees or collateral requirements
Legitimate personal loan providers charge origination fees, which are a small percentage of your loan balance. But these fees are paid out of the loan amount — you don’t actually get the full amount you borrowed, but you also don’t have to write the lender a check in order to receive your funds.
Some scammers capitalize on the fact that not everyone knows this by requesting victims send in money as an origination, application, or processing fee before the “lender”…