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Personal loan scams are fraudulent loan offers that aim to collect sensitive personal information and fees from victims—with no intention of ever extending a loan. Luckily, you can avoid these scams by keeping an eye out for red flags like upfront fees and vague or nonexistent lending requirements. When shopping for a personal loan, you can also avoid scams by reading online reviews and getting lender recommendations from friends and family.
What Are Personal Loan Scams?
A personal loan scam is a way for fraudsters to obtain your Social Security number or collect fees without lending you any actual money. Some of the most common personal loan scams involve fraudulent lenders acquiring your information or funds by promising a loan without a credit check. Others make unsolicited loan offers and then collect upfront fees or collateral before disappearing.
Luckily, because many loan scams are similar, there are certain characteristics you can look for—and avoid—when shopping for a legitimate personal loan.
Red Flags: How to Spot a Personal Loan Scam
Personal loan scams are pretty common, but, luckily, there are ways to spot them before you get caught up in one. Here are some warnings to look for in identifying a loan scammer.
The Lender Contacts You Directly
Generally speaking, you won’t get…
