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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.
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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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