I applied for a personal loan of $5,000 which was approved. They are in the process of sending me the loan documents to sign off on but they also want me to send $750.00. When I asked why I had to send in $750.00, they stated because of my credit. Here is what they also stated to me by phone. The loan is for $5000, at 6% interest rate, 2 years to pay them back at $203.67 per month. Has anyone ever applied for a personal loan and had to send in money prior to receiving their loan? Do you think this may be a scam. Please answer.
2006-09-30 01:57:30 · 7 answers · asked by Anonymous in Business & Finance ➔ Credit
generally speaking it sounds like you should proceed with caution. first, you should make sure you are dealing with a real bank or credit union. you should also check with the banking dept in your state to check to see if there are any pending complaints against the lender you are dealing with. also banks that charge fees should disclose them to you in advance of making your loan and they will usually deduct it from the money they give you. you don't normally send them money first and they send it back to you.
be careful and good luck
2006-09-30 02:07:44 · answer #1 · answered by Anonymous · 0⤊ 0⤋
"Be aware of alligator bearing fruit".....this sounds a little like a "processing" or acquisition" fee....either way i would not send it in.....this will count as prepaid interest and needs to be added to the 6% interest to come up with a true APR......how good is your credit? why are you paying any fees is my question?.....ok lets assume that you are between a rock and a hard place and this is the only way you can borrow it......tell them to send the paperwork and then "net" out the $750 that they are charging you......DO NOT SEND ANY MONEY!....never heard of this except maybe in a "high risk" loan.....but I really feel it is a scam!!
2006-09-30 04:58:11 · answer #2 · answered by Mickey Mantle 5 · 1⤊ 0⤋
It does seem a tad odd. But then, I am used to dealing with mortgages which are usually for far larger amounts and usually involve up-front fees for appraisal etc. only in amounts of $200 to $400. So to me $750 sounds a bit strange, especially for such a small loan. You'd think they would just adance you a principal amount of $4,250.
2006-09-30 02:14:58 · answer #3 · answered by Kokopelli 7 · 0⤊ 0⤋
If you have $750 then you really only need a loan for $4250. It's a scam. Don't do it.
If you have a car then go to one of those local 3 day loan places and let them hold your title as collateral.
2006-09-30 11:54:28 · answer #4 · answered by Not Laughing w/ U 3 · 0⤊ 1⤋
yes,i think this is a scam because they wouldn't ask you for money they would make your payments higher and at a higher interest rate.
2006-09-30 05:02:07 · answer #5 · answered by sherilyn t 1 · 0⤊ 0⤋
here you'll find a few sites that explain how it all works.
http://credit-cards.ebookorama.com
http://finance.ebookorama.com
http://credit.ebookorama.com
http://credit-repair.ebookorama.com
2006-09-30 14:44:40 · answer #6 · answered by ken_voss12345 4 · 1⤊ 0⤋
seems very suspicious...
2006-09-30 20:20:23 · answer #7 · answered by Anonymous · 0⤊ 0⤋