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- Don’t pay upfront. Legitimate lenders don’t usually ask for a fee upfront. If there is an application or processing fee, it should be very small – not the hundreds or even thousands of dollars that con artists request.
- Don’t fall for promises that you’ll get a loan regardless of your credit problems. If you have poor credit or haven’t established a good credit record yet, it’s unlikely that anyone will lend you money. Your credit history is one of the main things that legitimate lenders use to decide if you are a good credit risk.
- Be cautious about emails offering to help you get a loan. Many unsolicited emails are fraudulent.
- Do business with licensed companies. Ask your state banking or finance department about the licensing requirements for lenders and loan brokers, and find out if the company has complied.
- If you can’t get a loan yourself, get a co-signer. A friend or relative may be willing to apply with you for a loan. You will both be equally responsible for the payments.
- Get all the costs and other details before you decide. Shop around for the best loan rates and fees.
- Have proof of what you were promised. Get the agreement in writing or in an electronic form that you can use to document the deal.
- If you have credit problems, get counseling. Your local Consumer Credit Counseling Service (CCCS) can provide advice about how to build a good credit record. The CCCS may also be able to make payment plans with your creditors if you’ve fallen behind. These services are offered for free or at a very low cost. To find the nearest CCCS office, call toll-free, 800-388-2227, or go to www.nfcc.org.
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If you need advice about an Internet or telemarketing solicitation, or you want to report a possible scam, use the Online Reporting Form or call the NFIC hotline at 1-800-876-7060. |
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