A bad credit loan seems like an opportunity sent from the heavens for those who have a less than stellar credit score. The reason was that no bank would generally give you a loan if you had the tendency to conveniently skip on your payments. This is how bad credit loans came into the mix. In exchange for higher interest rates, they would conveniently ignore your credit score and offer you a loan. However, sharks also know where to look for prey – and what better place than amidst a group of desperate people? Especially the ones that get rejected at every point possible. Still, by paying a little bit of attention, you can still spot a scammer by some obvious (or sometimes, not-so-obvious) signs. Here are only some of those signs, along with some tips on how to watch out for these bad boys.
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They Completely Ignore Your Payment History
Indeed, the beauty of a bad credit loan is that you do not rely on your credit history to get acceptance. However, by not considering it, it doesn’t mean that lenders have to completely ignore it as well. They should at least have a look at it. Every respectable lending institution will want to know if you have the intention of paying your bills – regardless of how late you are. They will also want to make sure that you are not some ghost with no credit history. For all they know, you could have gotten a fake ID, fake documents, fled the country, and are now trying to rip them off before fleeing the country again. A bad credit loan creditor may not put much consideration on your credit score – but they will at least want to look at it.
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The Creditor is not Registered in your State
There are several places where you could check if a lender is doing legal business in your state or not. Mostly, you can find it on the lender’s website; so if you don’t see your state listed on the page that is supposedly trying to give you a loan, then you can be completely sure that it’s a scam. An authentic lender will also have to operate as bank affiliates, where they can get lender information and prospective borrowers. If you see no such ties, then you may want to just smile and wave as you search for another lender.
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They Ask for a Debit Card
You’re getting a bad credit loan simply because you’re low on money – so you shouldn’t have to pay in order to be paid. A scammer will ask the borrowers to come up with a debit card as “insurance” or “collateral,” as they call it. If the card gets in their hands, it can no longer be traced if they make a run for it. Therefore, if they ask for your card, just politely refuse them and get out the door.
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They Don’t have a Secure Website
A bad credit loan website that does not have a padlock icon is definitely bad news. If you get a warning saying that the security certificate has expired, don’t override it. Also, if you see anything else other than “https” at the beginning of the link, go back. The “s” at the end stands for “secure” – and while its absence may not be a sure-fire sign of a scam, it’s definitely a high possibility. If a website is not secure, then its owner is definitely up to no good.
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The Lender doesn’t have a Physical Address
Every lender – or official business, for the matter – should provide a physical location for their business – even if most of the transactions are done online. They should have an office where they can deal with customers that may not be lucky enough to have Internet. Be careful; even though they may have an address listed, it can also be fake. One good way to ascertain that they are not using some empty lot is to use Google Maps. No matter if you are going for a street or satellite view, you should be able to see if there’s an official business situated there.
Final Thoughts
A bad credit loan is definitely a good way to get out of trouble when the situation really asks for it. Going past the high interest rates, there are still many legitimate companies out there that only want to help you. Get in touch with Bad Credit Loans, where we offer fairly attractive rates for people who have bad credit. When in doubt, you should try us out! When something seems too good to be true, remember this: most of the time, it is. This is exactly why you need to be extra careful so that you don’t become a victim of bad credit loan scams.
