5 Signs That An Online Personal Lender is Not Legitimate

If you're looking for a lender online that can help you with a personal loan, then it's good to make sure that they aren't trying to scam you out of your money. There are some clear warning signs that you should look for when determining whether or not to submit your personal information to an online company. Here are some of the things you should look for (and things to avoid!) when searching for a legitimate lender.

 

Warning Signs to Avoid a Personal Loan Scam

 

1. Unclear rates and terms

A legitimate lender will always provide clearly stated rates and terms for any personal loan that you apply for. If the rates and terms are confusing and they can't answer any clarifying questions, then that's a clear sign to move on.

 

2. No/Poor Reviews and BBB Accreditation

Take a few minutes to look the lender up with the Better Business Bureau (BBB) and check their reputation online.  Often what you find on the first page of search results will tell you if they're legitimate or not. The BBB will typically give the company a letter grade ranging from A+ to F, with their reasoning for the rating.  If you find that the company has a poor rating, you can search for other options that are more highly rated. 

It can also be a good idea to check if a lender is registered with your state attorney general. If they are not, then the company is not legally allowed to do business in your state.

 

3. They Ask for Payment Upfront

If a lender requests that you send them money first before they process your application, then it's a scam. A legitimate lender will deduct any origination or other fees directly from your loan disbursement. Walk away if a company requests those types of fees upfront before even processing your application.

 

4. They Claim They’ll Lend to Everyone – Even with Bad Credit

In order to get the exact terms for a loan, a lender needs to check your credit. If a potential lender offers you a loan with no credit check, or their advertising targets people with poor credit, then most likely, they aren't legitimate. Every honest lender will check your credit – if they don't, don't do business with them.

 

5. You Feel Pressured to Sign

Taking out a personal loan is a big financial commitment – even if you have a good credit score.  You should be able to take the time that you need to make sure that you're confident in your decision. If you feel like your lender is rushing you into signing your loan paperwork, don't fold under pressure. You deserve a better lending experience with another company.  

 

Have Peace of Mind Applying for a Personal Loan With Credit Direct

At Credit Direct, we make getting a personal loan simple, secure, and straightforward. We work hard to get you the personal loan that you need within minutes. When you are ready to accept the terms and sign, your funds are deposited to your bank account through our secure direct deposit system.

Ready to work with a legitimate online personal lender? Submit your application for a personal loan at Credit Direct today!

 

Apply Now For A Personal Loan