When you need money fast, scammers know it. The Federal Trade Commission lists clear warning signs of fake loan offers.¹ If you see any of these, walk away.

The red flags

• “Bad credit? No problem.” Ads that guarantee credit no matter your history are a warning sign.¹
• Guaranteed approval before they check anything. Real lenders review your credit and application first.¹
• A fee before you get the money. You’re told you’re approved, but first you must pay for “insurance,” “processing” or “paperwork.”¹
• Calls you didn’t ask for. Unsolicited calls offering loans, especially robocalls.¹
• Strange ways to pay. Requests for cryptocurrency, wire transfers or gift cards.¹
• Being told to stop talking to your creditors. The FTC flags this as a warning sign with debt relief offers.²
• Pressure to act right now. Legit lenders let you take time to read the offer.

How to protect yourself

• Look up the lender’s name plus the word “scam” or “complaints” before you apply.
• Never pay anything upfront to get a loan.
• Type the lender’s web address yourself instead of clicking links in texts or emails.
• Check your credit reports for accounts you don’t recognize.

If you’ve been targeted

Report it at ReportFraud.ftc.gov.¹ If you paid with a card or bank transfer, contact your bank right away.

Sources

1. What To Know About Advance-Fee Loans, Federal Trade Commission.
2. How To Get Out of Debt, Federal Trade Commission.