1.) There’s no credit check
Reputable lenders will verify that the borrower can, and will, repay the loan before they agree to the transaction. If a lender doesn’t bother to check your credit, you’re about to get scammed.
2.) You’re asked to pay an upfront fee
When a lender asks you to pay for a loan collateral, insurance or other fees using a prepaid debit card, it’s a scam. Back out of the deal before it’s too late.
3.) The lender isn’t registered in your state
As per the Federal Trade Commission (FTC), every lender and loan broker must be officially registered in the states where they do business. A legitimate lender will have a list of those states posted on their site. If you can’t find this information and the lender refuses to provide further details, they are likely not legitimate.
4.) The lender is not affiliated with any financial institution
Authentic lenders must operate under a bank or credit union charter. This information should be posted on the lender’s website. If it’s missing, you might be dealing with a scammer.
5.) You’re urged to act immediately
If a lender pushes you to submit your information and make an upfront payment RIGHT NOW, it’s probably a scam.
6.) The site isn’t secure
Verify the site’s security by checking for an “s” after the “http.” If it’s there, the site is secure; if it’s not, back out now! You should also check the site’s security as soon as you hit the homepage. Lots of hackers use keystroke loggers to record as you type. So, even if you don’t hit submit, they may already have the information they need to scam you.
7.) The lender has no physical address
Do a quick online search using the lender’s official name. If it’s legitimate, a search should bring up a physical address for the company. If the lender’s name doesn’t turn up anything beyond the online world, opt out immediately.