Finding a bad credit lender isn`t always easy. What makes it worse is the sheer amount of scams and cons that surround this portion of the banking industry. So many times things seem legitimate but once money or personal information has been exchanged, the game is up and you are left with less than you had before. Before you agree to anything, it is important to check and make sure a company is truly legitimate. Here are a few tips for how to spot a fraud.
Commercials, radio advertisements and even flyers around the neighborhood mention a company that can guarantee you a loan, despite your credit history. In fact, they may even tell you that they aren`t going to check your credit score or your credit history. This is a red flag. Every legitimate lender wants to know your credit score. They need to determine how much of a risk this loan will be and how much interest they will charge. When someone guarantees that you will be approved no matter what, something just isn`t right.
These same companies often ask for your social security number. If they aren`t running a credit check there is no need for them to have your social security number. This is another heads up when it comes to bad credit lender scams. This number is the key to your credit and credit history. Leaving this in the hands of someone else can end up being a costly mistake.
Up front fees are another part of bad credit lending scams. A legitimate lender may ask for an application fee or a fee to check your credit. However, they will not ask for the money up front. In most cases the amount will just be added to the loan. If fees are not disclosed up front or aren`t mentioned until the process is already completed, something isn`t right.
When someone asks you to send in money through a wire transfer or with a money order, you have found yourself in the midst of a scam. Legitimate lenders do not accept money in those forms. Some scammers will ask you to make the transfer or the money order to an individual instead of a company. Once again, rest assured that this is not a legitimate bad credit lender. Whatever stage of the “lending” process you are in, stop immediately.
Some individuals and companies do all that they can to imitate a legitimate lender. They may even use the name of a well-known lender or bank. They may have a website that looks real or even paperwork that looks real. However, it could still be a scam. Check your local phone book or online directory listing for the company`s name and phone number. If you don`t see either one, chances are that this too is a scam. Before you enter any information online, check the phone numbers, the mailing address and any other information that can be verified.
When you see a bad credit lender that seems not to be true, more often than not, it isn`t. Be a savvy consumer and be on your guard as you look for a lender that can truly help you. Even if you just need to find a mortgage calculator, be sure that you are using one from a reputable site. You should not need to enter lots of personal information, including your social security number just to get an idea of what your home loan will cost.
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