If you are struggling to build a good credit score or facing some financial difficulties, cash loans may be very logical solutions. These days, getting cash loans can be very challenging. Although there are too many lenders who are willing to accommodate you, not all of them are legitimate. Loan sharks and scammers are everywhere. They use no credit check schemes and same-day loan approvals and many other attractive offerings as their baits. Because you need funds that much, you will less likely consider the risks that come along with every transaction made with these illegal cash loans lenders.
Later, you realize that you are paying towering interest rates that you can no longer afford. In addition, these cash loans lenders may be getting more money from you than what you got from them. As a result, you ended up getting multiple loans just to keep paying and thus, making your situation worse. The most devastating part would be losing all the money you have for nothing.
It is paramount that you do extensive research first about your preferred lender before you take a plunge, whether online or through your peers and yellow pages. There are some ways to detect scammers that offer bad credit cash loans.
Scammers Require Upfront Fees for Approval of Cash Loans
If you are applying for cash loans and not mortgage, paying upfront fees is unreasonable. Scammers look for some ways to get some extra cash from you by asking you to pay a “down payment” in exchange of a guarantee that your loan will be approved with no credit check. Legitimate lenders never do this as they approve cash loans depending on your submitted requirements.
Scammers Avoid Payments for Cash Loans via Direct Mail
Generally, legitimate lenders offer you different means of payment for your convenience. However, scammers always opt for wired payments rather than direct mail. This is because there are stringent laws in America pertaining to fraud mails. Scammers are worried about being traced back and be penalized.
Scammers Direct You to 1-900 Number to Call
Although scammers using the 1-900 scheme have already been busted, there are still many consumers who fall into this trap. If you encounter such requirement from cash loans provider, they are certainly fraudsters. They would make ways so you will get stuck over the phone calling the number and pay for incurring call charges after. Also, they would ask for some personal details like the social security number and other personal details. They would use these essential pieces of information for fraudulent activities that may put you in danger later on.
If you believe that the lender is a scammer, report them to the authorities right away. Contact the law enforcement agency as well as the Attorney General in your state. Doing so won’t only save you but their future victims as well.