Advance-Fee Loan Scams

Advance-fee loan scams target those who are having a hard time getting approved for a loan and/or credit card because of their less-than-optimal credit score. Scammers will post advertisements online promising to give you a loan or credit card– no matter how bad your credit score is. Avoid phrases like, “No credit? No problem!” or anything insinuating that they will give you a loan or credit card, regardless of your credit score or past.

A legitimate lender needs your credit score to determine your creditworthiness and is required to disclose the interest rate and any fees upfront. You can expect to fill out an application and some financial institutions may charge an appraisal fee before considering loan applications. It should raise some questions if you’ve been approved for a loan but haven’t heard what the interest rates or fees are.

Protecting yourself from an advance-fee loan scam can be done by checking to see if the lender is registered in your state, searching their name or company online for previous scam reports, and hanging up on recorded sales pitches. If you find yourself victimized by an advance-fee loan scam, report it to the Federal Trade Commission and contact law enforcement immediately.

If you’re in debt, Member One Federal Credit Union wants to help. We offer free financial literacy classes at our Learning and Development Center. Check out our upcoming courses by visiting https://yourmoneymatters.corsi....