Are you thinking of getting a personal loan? Hopefully you have a high credit score, as this will give you a better chance of getting the loan through a legitimate company. But even if your credit is excellent, you need to be aware of the personal loan scams out there.

Not Respecting Your Limit

  • You don’t want to do business with a lender that pressures you into borrowing more than you can handle

Upfront Payment

  • You should never have to pay any fees for the application process. If you’re requested to do this, move on.

Pumped up Interest Rate

  • Know what the going interest rate is. A good lender will quote you near this average rate.
  • A bad lender will recognize the desperation of the applicant with bad credit and try to sock them with an abnormally high interest rate.

Us and Only Us

  • Be suspicious of lenders that don’t like the idea of you shopping around for better rates.
  • This is a red flag that they have questionable loan practices.

Location, Location

  • An honest, legitimate lender or bank has a verifiable physical address. Get this confirmed with Google maps.
  • If you can’t, move on. But know that even a predatory lender may have a very solid physical address.

Solicitations

  • As in ones you didn’t request. Watch out for banks that send you unsolicited invitations for a personal loan application.

Don’t Be Intimidated

  • Because a seedy outfit may want to scare you into closing on their loan. But they can’t do anything to you, even if they use the term “legal action.”
  • If you want to reject their loan offer, then do so.

SSN

  • Does the lender want your Social Security number? This is fine if they’re wanting to do a credit check.
  • If they’re not doing a credit check but want your SSN, move on.

Signing Empty Documents

  • Do not sign anything that does not have the interest rate, terms, loan amount, monthly payment and other crucial information.
  • Before signing anything, make sure there are no blank areas that can be filled in later.
  • Run if the lender wants you to sign something that’s missing information.

Guaranteed!

  • Is a bank guaranteeing your personal loan? Sounds great, right?
  • Not so fast. They cannot do this if they have not verified your financial history or credit history.
Author's Bio: 

Robert Siciliano is an identity theft expert to BestIDTheftCompanys.com discussing identity theft prevention.