Avoid Personal Loan Scam, Choosing Your Financial Service Provider Wisely


If you don’t like bank loan terms and you just prefer to get a loan from a financial service provider, it is – okay as long as you know how to avoid a personal loan scammer. If you are planning to take a loan, then it means you have an emergency and you are feeling stressed. However, be aware that there are scammers out there that will take advantage of you if you let them be.

When talking to someone or a company offering a financial loan, watch out for these red flags and immediately stay away from them.

They Don’t Do Credit Check

In MI, most lenders will do a credit check to determine your capability to pay a loan. If you are talking to someone who promises to release your loan by asking you to pay a minimum amount but doesn’t ask about your credit background, that is a red flag.

They Can’t Show Their Registration Number

There are a lot of installment lenders in MI and they have a registration or a license number to do so. If you are talking to someone who cannot show such, that is a red flag.

They Don’t Have an Office Address

So you saw their ads online and contacted them. You asked where you can find them and they told you to meet them at a coffee shop near you – that is a red flag. No lender will ask a client to meet at a coffee shop, because they would want to show their office to you first to make an impression that they are reliable.

They are Collecting Upfront Payment in Exchange of a Guaranteed Approval

This is a big red flag. Most loan companies won’t charge you yet or collect a fee because it will depend on the loan terms. If they keep on telling you that they can guarantee the approval of your loan once you make a payment, you should stop talking to them.

Once you found a reliable installment lender Mississippi, always go back to the list above and check for a possible red flag before giving your personal information or paying any amount such as processing fee.