Common Personal Loan Scams You Must Know

IamCheated.com Research Team | June 08, 2018  5:59:pm

Availing personal loans from banks and financial institutions is a great way to meet emergency expenses. However, you have to be very careful while borrowing, because there are many fraudsters who cheat you in the name of giving you loans, at attractive interest rates. In this blog, we will discuss some of the tricks used by fraudsters to cheat you in the name of giving you personal loans. 

The Phishing Scam

Under the phishing scam, fraudsters collect your personal information for the purpose of conducting fraudulent activities. Fraudsters posing as well-wishers and promising you loans at very attractive rates of interest, collect all your personal details like name, bank account information, identity proof, credit card number and so on. Fraudsters misuse this personal information to conduct fraudulent activities. This means you have to be very careful of your personal information.

Advanced Fee Scam

If any bank is asking you to pay an advance fee for the disbursement of a loan, kindly stay away from them. No banks will ask you to pay an advance fee before the disbursement of a loan or loan agreement. However, you are required to pay certain fees such as processing fees, documentation verification fees and so on, but these fees are part of the loan agreement and not through word of mouth.

There’s No Credit Score Check Scam

Every bank and financial institution considers your credit score, before disbursing the loan. Your Loan application will be accepted only if you have a good credit score. Banks will not sanction a loan if your credit score is bad. If you receive a call or email saying credit score is not required for personal loan approval, then it might be a scam. When it comes to unsecured loans like personal loans, no banks will give you a personal loan without checking your credit score.

Unsolicited communication scam

You might have received calls and emails saying that you are eligible for a personal loan without any hassles of credit checks and other qualifying conditions and you will be asked to apply as soon as possible. These kinds of emails and phone calls are made by fraudsters to steal your personal information. So, you have to be very careful if you receive such calls.

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