Think twice about that online loan
By Greg Collier
There are few things more frustrating than when a surprise expense needs to be paid, such as an emergency car or home repair. If someone is short on cash, they might consider a loan. Then, to simplify matters, they may look online for a loan. Unfortunately, there is a veritable minefield to navigate while looking for a legitimate lender. One wrong virtual step could lead you into a scammer’s trap.
For example, a Dallas area woman was looking for a small loan to have her car repaired. She filled out an application through what she claims was a legitimate lender. Once the application was completed, she started receiving offers from several different online lenders.
One lender in particular told the woman she needed help with her credit score to get a loan. This lender supposedly had the solution. They would send the woman $1800 and by sending back the money it would improve her credit, so she could get the loan. The payment sent to the woman’s bank account was not legitimate. The scammers had contested charges with her bank to make it look like there had been an $1800 deposit. If the woman had sent the $1800 to the scammers, she would have been out $1800 of her own money. This is not unlike the fake check scam. Thankfully, the woman realized she was being scammed before sending any money.
Legitimate lenders will never have you send them money. If a lender sends you money, then wants you to pay it back immediately, they’re trying to steal from you.
If you’re looking for a loan online, you need to follow many precautions. Look for reviews, ratings, and complaints about the lender from reliable sources. Avoid sharing sensitive information such as your Social Security number, bank account details, or passwords unless you trust the lender and are confident in their legitimacy. Obtain loan quotes from multiple lenders and compare terms, interest rates, and repayment conditions. Be skeptical of significantly lower rates or overly favorable terms. And of course, if something seems too good to be true or feels suspicious, it’s better to be cautious and seek alternative lending options.
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