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How to Spot Bad Credit Loan Scams

how to avoid loan scams


You know you’re in a pickle when you need a bad credit loan. Bad credit loans do exist. Subsequently, bad credit loan scams are real, as well. A lot of persons fall into the traps of certain “companies” that promise money in as little as 24 hours from the request.

It’s not ethical, obviously, but nothing is in this day and age. The Internet, as fascinating as it would be, facilitated the appearance of hundreds of scammers. If you need a bad credit loan, you must learn how to shield yourself against bad credit loan scams. They’re everywhere, but on a more positive note: they’re easy to spot.


Signs That You’re Dealing with Bad Credit Loan Scams


  1. Upfront Payment

This is the clearest sign you’re about to get robbed. Whenever a company seems willing to help you but asks for a certain sum as an “insurance” or advance on your repayment, you should know it’s up to no good. If it’s a well-reputed institution, then it is justified to ask for upfront payment, but if it’s some obscure company that doesn’t even seem to have a physical address, it should raise some question marks in your mind.


If you do the mistake of providing them that upfront payment, you’ll never see your loan. And you will have lost some good money for nothing. In the worst cases, we’re talking about thousands of dollars. And this isn’t even all: when you pay the upfront payment, you automatically give your personal information away. They can use it to empty your other accounts, as well.


  1. They Don’t Care If You Can Pay The Loan Back

Sure, they won’t check your credit history, but a genuine company always makes sure you will be able to repay them back. If it didn’t, it could as easily make a pile of the money and set it on fire or flush it down the drain.

If you approach a company and the lender doesn’t seem interested in your ability to pay the loan back, even in the long term, you should stay away from it. This is a good sign you’re likely to end up in more debt than you were in before taking that bad credit loan.

Many people, unfortunately, fall prey to such bad credit loan scams. It’s easy to understand why: those who are indebted are moved to tears when lenders don’t impose strict rules on them. In this case, however, it’s not solidarity that drives these lenders, but the wish to accumulate money they wouldn’t get otherwise.


  1. They Ask For Personal Information

This is perfectly normal – when you can see the lender face to face! Do not ever give your social security or bank account number to such a company unless it’s a reputable one and it has everything a legitimate company has: address, physical headquarters, customer service and a phone number that actually works.



Bad credit loan scams will always pose as genuine companies, but that’s precisely what ruins their credibility. Look for reviews and testimonials on any site you might stumble across while searching for bad credit loan companies on the Internet, in order to see what other people have to say about them.

When you want to take a bad credit loan, you should try talking to a bank first. If it’s unable or unwilling to do so, you can consider private lenders. Be extremely careful if you shop for Bad Credit loans on the Internet. Don’t stray too far away from those companies that appear in the first pages of the search results. Anything beyond those is not accredited in any way, hence their low ranking.


  1. Their Websites Are Disastrous

Poor grammar, unresponsive design, discounts, pop-ups, etc. All of these are signs that you’re dealing with somebody that is after your money. Genuine companies have good websites, with good content and reviews from those whom they’ve helped. Nowadays, everything takes place on the Internet. Robberies inclusively.

Luckily, the difference between bad credit loan lenders and those who seek to relieve you with some good money is obvious. You don’t need to have majored in psychology in order to see somebody is trying to scam you.



Bad credit loan scams have picked up a lot of ground as the Internet evolved. It’s so easy for them to make illegal money from people who are in need of financial help. The trend, unfortunately, is rising, and it becomes more and more difficult to educate people on this subject.

Genuine sources of bad credit loans do exist., for instance, is one of them. Surf the website and see what it has to offer. Make sure you stay away from bad credit loan scams by checking out the aspects above carefully.