Why Advance Fee Personal Loans are a Scam

There are times in today’s society when a person needs to apply for a loan; perhaps for a wedding, a holiday, an upgrade, or to simply pay off the mounting debt one accumulates over the years. For most, a bank will happily lend you the desired amount of money providing you can prove you can pay it back. However, for those who have bad credit or nowhere else to turn to, they find Advance Fee personal loans after searching the internet for a quick turnaround.

In the world of lending money one’s ability to repay the amount including the interest is what all lenders top priority in looking for possible borrowers. They won’t invest their ends in the purpose of losing them in the future. Thus, it would be suspicious enough if a certain lending institution or company admits you to a personal loan without checking your credit history and charge you a fee before the release of your loan.

Loan scams are everywhere. In fact, they invade any city targeting those borrowers desperate to find a lender. Most loan scammers will try to get your sympathy and that they feel and understand your needs. Perhaps they will defend that the fee they are collecting will be used for the processing of the release of your loan or cleaning up your record if you have a bad credit track. They sound too good to be true … they’re not.  

Advance fee is considered illegal in some states as a legitimate lender doesn’t need all those sentiments, which the fees are collected for, in order to grant you the loan that you are applying for. You want to borrow money because you’re catching up financially then an advance fee is collected from you? This is something not right indeed.

Another thing to watch out for is that if the moneylender is a company and the assigned employee asks for advanced fees with receipts not belonging to the company. Others are also making the fees to be transferred through fast money transfer transactions. Think again before engaging further for you are sure to become a victim of a scam.

Frauds will also ask for your personal information and credit card numbers. Don’t give them any access to your personal accounts for the next time you will check on them you will be left bankrupt in the middle. Hence, to find whether the lender is a scam these are the signs; advance fee, don’t have OR, asks for fee through instant money transfers and ask for your personal credit card information.

The best way to avoid them is by doing some quick research at the Better Business Bureau (www.BBB.com). This way, you can see whether they are a legitimate and trustworthy company, thus avoiding the scam artists.