Identifying Loan Scams: Are You Being Scammed in Finding a Loan?

If applying for a loan online, be careful who is accessing personal information. There are scammers who set up fake websites and create applications for loans in order to scam people out of their money on the pretence of getting a loan. The people most commonly targeted for this are those who are already having problems getting loans though conventional means.

Some of the Initial Warning Signs of Loan Scams

Ignore anything that looks like spam. It probably is and is likely a fraudulent offer. However, if the email is addressed directly to the sender and does not look like spam, still examine it carefully. Firstly, if there are any issues with the language and grammar, this is a flag. A professional (or even a serious investor) will make certain that the language is proper and formal, in most instances. There will not be grammatical or spelling errors. Also examine the response address. Anything claiming to come from a bank will use the bank’s proper email, not a Yahoo or gmail account.

Beware of links in emails. These are often disguised and misleading, and can even be deceptive by having a name very similar to an actual bank or financial institution. There is one scammer that even uses the name of a German bank in its URL, and if the name of the bank is searched, then the actual site of the bank shows up and is very obviously different. A .net extension could also be a clue, as most legitimate lenders will use either .com or a country extension, such as .de (for Germany).

Other warning signs are getting multiple copies of the same email; emails that come from known scamming places, such as Nigeria (or appear to Nigerian, but claim to come from another country, such as the UK).

How the Loan Scams Work

The idea behind these scams is to get money from the person being scammed. This is usually done under the pretence of application fees. Please be advised that no legitimate loan company will ask for the application fees up front. With a legitimate loan there will be several forms to fill out first, the conditions will be agreed upon up front, there should be review of all items by both parties, and there will also be to possibility of legal review, without complaint, by either party involved.

To avoid the chance of being scammed, always review everything as much as possible. Make certain that any agreements signed are reviewed by an impartial third party at the very least, but ideally by a legal representative who has the best interests of the party receiving the loan at heart. And never, never send any money before having the entire agreement reviewed and accepted. Especially through Western Union or similar agencies.

Motorcycle Title Loans Provide a Fast Easy Cash Advance Today

When the banks have rejected an application or a fast easy cash advance from a payday lender isn’t quite sufficient, a motorcycle title loan could provide the answer. Putting up a vehicle as collateral means that no credit checks need to be performed because the lender is always able to recover his or her money in the event of default. A history of bad credit is no obstacle to approval and the money can be used for any-purpose, such as fixing a broken car or meeting a business expense.

How to Qualify for Motorcycle Title Loans

Although credit scoring isn’t used at any stage of the application process, it is still necessary to comply with a different set of lending criteria. Lenders are more interested in ensuring that there is sufficient collateral to recover any unpaid debt and that affordability can be proven. A number of U.S. states have also introduced their own laws that specifically govern vehicle title loans. The standard eligibility criteria are as follows:

  • The customer must be a minimum of 18-years of age.
  • Two forms of identification must be provided.
  • At least 75% of any vehicle finance must have been paid-off.
  • Proof of income is needed. Although a full-time job is preferable, some lenders will accept applicants who can demonstrate that they are in a position to repay the debt.
  • An original copy of the car title.
  • A duplicate pair of car keys. Although the vehicle will remain in the possession of the borrower, failing to repay the debt will result in repossession.

The Cost of a Fast Easy Cash Advance Today

A motorcycle title loan for $5,000 will accrue $1,250 of interest in just 30-days. The rate of interest can and does vary between U.S. states. For example, the maximum APR in Iowa is 35 percent. The cost of borrowing is high on an emergency cash loan because lenders are dealing with customers who have already been rejected by the banks due to a bad credit rating.

When Will an Emergency Cash Loan Be Received?

The majority of customers will receive an easy fast cash advance today, but within 24-hours at the latest. A lot will depend upon when the application is submitted. If a motorcycle title loan is applied for early enough in the day, there is enough time for a bank transfer to reach the customer’s account. Most lenders prefer to send a bank transfer, rather than paying in cash, because it is an important part of the identification and validation process.

Pros and Cons of Bad Credit Vehicle Title Loans

A motorcycle title loan provides a way to borrow money by putting up a vehicle as collateral. When bank lenders have rejected the application or when a fast easy cash advance from a payday lender isn’t sufficient, this could provide the answer. The problem with an emergency cash loan is that the rate of interest is often usury. This not only leaves less money to pay future bills, it could lead to the loss of the motorbike. If experiencing financial difficulties, it is advisable to seek guidance from a credit counselor.