Protect Yourself from Advance Fee Loan Scams

If you find yourself in this position of being a potential target for one of these advance fee loan scams there are several things to look out for before you become a victim of one. The most important thing you can do is to learn what some of the early signs of a potential scam is and stay away from them.

If you are ever asked to pay a fee upfront prior to getting approved or in order to receive you loan or card then you probably want to walk away. Fees that are legitimately part of a loan process are taken out of what you are borrowing and are disclosed upfront. If you here the fees are for insurance, processing or just paperwork, then you should walk away. All fees should be disclosed upfront and there should be no requirement to pay prior to approval or to receive the loan or credit card.

If the lender is not interested in your credit history, then that should be a red flag. All legit financial institutions will run a credit history before approving you for a loan or credit card.

It is illegal for any company doing business in the US to promise you a loan over the phone and then turn around and ask you to pay for it before they deliver you your loan. It is best not to do apply for a loan or credit card over the phone without knowing exactly who you are talking to and that they are a legit financial organization.

Those who run the advance fee loan scams often have a slick website and they sometimes use a name that sound like a well-known respected organization. This makes them seem legit.

Check out any company you are considering doing financial business with. Look their phone number up in a phone directory. Make sure the person you are dealing with has a direct line and be wary of that person is never there when you call and always returns your call later.

Advance fee loan scams often work out of a post office boxes or mail drop boxes. Once you know you have been scammed they are gone. Get a street address for the company which will help you in checking out that they are a legit company.

Check with your state's Attorney General Office or your state's Department of Banking or Financial Regulation to see if the company is registered in your state. Financial organizations must register in every state they do business in.

By all means never wire money or make payment out to an individual for a loan or a credit card. Also never send a money order. These are common practices involved in advance fee loan scams.

If you are in the position that your credit is not what you would like it to be and not good enough to get a loan or credit card, then the last thing you need to do is waste money by becoming a victim of an advance fee loan scam. You would be better off using the money they try to get out of you to apply to any debt you have and work on repairing your credit so you can become eligible to obtain a real loan or credit card for a financial organization that you know is for real.