7 Warning Signs of a Personal Loan Scams

Identity theft and personal loan scams are increasing as more of our lives go online. There’s big money in the billion-dollar personal loan business and even bigger money in stealing people’s banking information.

Scammers are quick to change up their tactics but seven warning signs always seem to come out and give the fraud away.

Know the seven warning signs of personal loan scams to avoid being a victim in this growing crime.

1. No Credit Check Loans

Don’t believe any lender that says they have ‘breakthrough’ technology that can estimate your credit or the interest rate on your loan through other information like your answers to a survey or from social media. 

Related to this, don't trust lenders offering ‘no credit, no co-signer‘ loans.

2. Upfront Fees or Loan Collateral

Upfront fees or loan collateral is the most common of personal loan scams. It used to be that scam lenders would ask you to wire an origination fee from your bank account for processing the loan.

3. Unregistered Lenders in Your State

All personal loan companies and lenders must be registered in the states where they do business. Registration is usually done through the State Attorney General’s Office.

And helps the state monitor what financial promises are being made to the public. Don’t believe a lender if they say they don’t need to register because they are totally online or because they are not a U.S. company.

4. No Physical Address

This personal loan scam warning sign isn’t quite as concrete as the others but it’s a good check and could save you when in doubt. Most lenders are going to have a corporate office building or at least a physical address. 

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