Avoiding Advance-Fee Loan Scams
Has a lender guaranteed you will get a loan or credit card?
Has a lender said it does not matter if you have bad credit or no credit?
Rip-off lenders often use come-on lines like these. Then, they usually ask you to pay a fee to "process your application." You end up with no deal or a bad deal - and you pay out what can be a big fee.
If you apply for a home loan, you usually have to pay for a credit report or an appraisal. However, you should not have to pay any other charges in advance. Only rip-off lenders ever ask you to pay for processing your application. Don't do it!
You should also avoid giving your credit card account number, bank account information, or Social Security Number over the telephone or Internet.
If you don't have the offer in hand - or confirmed in writing - and you're asked to pay, don't do it. It could be fraud. And it could end up costing you a lot of money and hassle.
Reviewed July 2003
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