Does this sound like a loan scam?
Question by Baby J: Does this sound like a loan scam?
I did a internet search for loans for people with bad credit, I found a site and applied. I just recently heard from a loan specialist that says I was approved for a loan, because of my low credit score it has to be a secured loan. I have to pay the first 6 months upfront before the loan can be disbursed to me which is $ 965; and I won’t have to pay the first 6 months.. Does this sound like a scam? I’m just unsure because I’ve never really heard of anything like this.
Best answer:
Answer by Phillip J
yes it is a scam that want money first. your appling for a loan which means your NEED money why would they make you give them movie if you NEED money? loan agencies get you back on the interest nothing else. unless ur late for a payment which is late fee;s but yea stay away from that. get a loan from chevy chase, Bank of america or some place you have heard of!
Know better? Leave your own answer in the comments!
OC1999 posted: 19 Jan at 6:06 pm
100% SCAM.
Never pay for a loan up front for any reason. If you do you will never see the money you send and you will never see the loan.
darckling posted: 19 Jan at 6:19 pm
Definitely, no loan company asks for money upfront because they assume that if you had funds you wouldn’t be asking for a loan. Do not touch this. Secured loans are loans secured against your house, meaning that you’ll lose your house if you default…not that you have to make several payments to secure the loan.
maggie posted: 19 Jan at 6:25 pm
Well i do believe there gonna cause you some trouble on that .I never give people money for something they have not done and i dont think this is a very good idea either sounds kinda fish dont it!
? posted: 19 Jan at 6:35 pm
It is a ripoff if you have interest or fees deducted from the proceeds of the loan, because then you are actually receiving less, thus paying a slightly higher interest rate for what you are receiving. Another sign of a ripoff is if they will charge you interest for those six months. So if you want to borrow $ 500, but they say they can loan you $ 1000 less a $ 35 processing fee and you have to make the first 6 months payments up front, then the final six payments six months from now, then they are actually only loaning you $ 465 but charging you interest on $ 1000, so they can charge you twice the legal interest rate, and then tacking on another 3.5% in interest by calling it “fees,” both of which are typical red flags of a ripoff trying to play a shell game to mask that they are charging an illegal rate of interest (called usury). Also, although they call it a benefit, they don’t want you to make payments for 6 months so they can accrue lots of that outrageous interest to maximize their profit.
You are wise to ask about this loan scam. My suggestion is to cut your expenses, even if only temporarily, or get a second job like at a fast food place on evenings or weekends to bring in the extra money you need without adding any extra debt that you don’t need. Don’t look for secondary income the same place you found the loan scam. The internet is full of scams labelled as second jobs, mystery shopping, or surveys, which are just ways to give you a double whammy by taking some of your hard-earned money for putting you on a spammer’s database.