Protect yourself by looking for these five telltale signs. (iStock)
The coronavirus pandemic has had a significant impact on the economy. While it’s starting to decline, unemployment in July 2020 is at 10.2%, according to the U.S. Bureau of Labor Statistics. And more than a million people filed an initial claim for unemployment benefits during the week ending August 22, 2020, according to the Department of Labor.
Amid the current economic uncertainty, you may be investigating personal loan options to help make ends meet. An excellent place to start is by visiting Credible, where you can find reputable lenders and compare terms and rates all in one place.
But be on the lookout for warning signs of a personal loan scam. During times of uncertainty, scammers may prey on people’s fears. In 2019, consumers reported losing more than $1.9 billion due to fraud, according to the Federal Trade Commission (FTC). Common scams include student loan relief, debt consolidation, and credit repair, which cheat consumers out of money and damage their credit in the process.
As you start to explore your loan options, keep an eye out for red flags that a personal loan offer could be a scam. There are at least five loan scam warning signs:
- Guaranteed loan approvals
- The lender hides or changes its fees
- The lender isn’t registered in your state
- The lender requires an immediate commitment
- The lender demands a prepaid credit card
1. Guaranteed loan approvals
To determine the terms and amount…
