Personal loan scams seem to be hitting headlines in the Canadian media every now and then. With millions of people going for these types of loans on a monthly basis, it is imperative for each applicant to take necessary precautions to avoid getting scammed either by lenders, or by losing their identities to fraudsters online.
Here are some of the strong pointers you should watch out for to avoid getting scammed when considering personal loans:
The first warning that you are dealing with personal loan scammers, is when you are asked for upfront fees or some sort of processing fee. You may also be asked for your credit or debit card information as loan collateral. They will promise to not touch your money, but that they just need to ensure that you have some money before they give you the loan. You will regret it if you let them have your credit card information.
It is a legal requirement that all personal loan lenders be registered in the areas or regions where they offer the loans. If it happens that the lenders promising to give you money are registered in another state or region, take your time to do due diligence and find out more about their legitimacy.
They may argue that they operate fully online, so there is no need for them to have a physical office. Legitimate personal loan lenders will have offices somewhere, and if you can’t tell where their offices are or if they simply don’t have a physical address, know that there is a good chance that you are dealing with a scammer.
It is not possible that a lender will agree to give you money without ascertaining whether or not you will be in a position to repay them. It is therefore not true when a personal lender tells you that they won’t check your credit. They will always want to do two checks on your credit score: a soft inquiry and a hard inquiry. You should be worried if they promise not to check your credit score.
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