If you remember anything from your economics class, having a good credit score leads to strong spending power such as a great financing on a new car or home. However, BBB warns there are several online loan offers from firms that aren’t concerned about your pristine credit or honest spending habits. They claim all you have to do to get a loan from them is pay them a fee in advance. A Harrison area man recently applied to one of these online lenders and received a phone call from a man who told him he was approved for a $5,000 loan.
A few days later, the lender called back to say before the money could be delivered the borrower must first get a Green Dot Money Pack and load it with $375. The lender promised he would not take any money from the card, adding he just wanted to check the card’s balance. So, the local man bought the card, loaded it with money and called the lender with the number on the card as requested. The lender called back claiming the man’s credit score was too low and now he needed another $282 to grant the loan.
The borrower did that but, after calling the lender with the new card numbers, the lender claimed there was another problem and he needed a third card loaded with $282. At that point the borrower checked, learned the money was taken off the first two cards and realized it was all a scam. When he asked the lender where the money went, the so-called lender just said, “Thank you for calling, bye bye.”
BBB says many of these advanced fee loan agencies operate outside of the United States and are illegal. The Federal Trade Commission adds legitimate lenders never “guarantee” or say applicants are likely to get a loan or a credit card before applying, especially if they have bad credit, no credit, or a bankruptcy.
Remember, legitimate lenders evaluate your creditworthiness and confirm the information on your application before granting credit. As the local man learned, if a lender wants you to pay money upfront run the other way because its probably just a scam.
Start your search for a trustworthy lender by visiting the Business Directory at bbb.org