In 2020, there were 99,667 reports of identity theft for business and personal loans, according to the Federal Trade Commission. This represents a 127% increase from the previous year. If you don’t see the warning sign of a personal loan scam and you fall into a scammer’s trap, your identity can be stolen. In addition, the scammer may take some of your hard-earned money. In addition to taking your money, the scam artist could also hit you with identity theft, potentially leaving you with bad credit
One way to avoid falling victim to a personal loan scam is to compare offers from multiple legitimate lenders through a lender’s website or another safe method to find the best personal finance loan for your needs.
To avoid being ripped off by fraudulent lenders, learn how to identify some common warning signs of a personal loan scam. If you’re looking for a reputable lender, visit an online marketplace like Credible to explore personal loan options.
How do you avoid personal loan scams?
To avoid personal loan scams, you should be on the lookout for these five red flags:
- The lender guaranteed approval
- Upfront fees
- The lender offers you a loan by phone
- The lender isn’t registered in your state
- The lender wants you to wire money or use a prepaid credit card
1. The lender guaranteed loan…