Posts tagged ‘loan scam’

Is Getting a Car Loan Approved Online Within 24 Hours a Sure Sign of a Scam?

A car loan approved within 24 hours of applying is not necessarily the sign of a scam, but there is a good chance you will be dealing with a sub-prime lender. More often than not, these types of loans are from loan companies specializing in sub-prime loans. These loans carry higher interest rates and the terms are much tighter. Be sure to read all of the documentation, especially the fine print, very carefully. The first place you should go for a car loan is your primary bank or financial institution. Loans from these lenders normally have the best rates and are these are the safest type of lenders. A dealer may be able to arrange a loan for you, as well.

The Internet is full of legitimate, as well as illegitimate lenders. Securing a loan online is fast, convenient and you may never have to step foot in a bank. Scammers, unfortunately, take advantage of borrowers looking to secure an auto loan online. It is quite simple for just about anybody to set up a legitimate-looking website. Always research the site. Make sure it is in good standing with the Better Business Bureau and other security organizations before you give out any sensitive information.

Some common online loan scams to look out for:

The Guaranteed Approval Loan Scam

When a lender claims you are absolutely guaranteed a car loan, keep in mind the old adage