I was approved for a loan of $6000?

Question

The finance company wants me to send them $800 for insurance that will be refundable after 90 days. I guess because I have really bad credit. They also told me my terms which is a 9% interest rate for 2 years. They sent me a contract and all the necessary means of getting a loan. Do you think it's legit or a scam. Yes, the company is from the U.S.

Answer 1

If you found them on the Internet, and aren't someone you're dealing with locally in their office, this SCREAMS scam. Even if they're local, you shouldn't be paying up front - if there's insurance involved they can take it out of the loan amount and send you the rest. And why would insurance be refundable after 90 days? This just doesn't sound right. You wondered why you got approved so easily with your bad credit, right? Now you're finding out.

Answer 2

Call the Better Business Burea and ask them if they have any bad reports on these people first off, because they should not be asking you for money to lend you money. Also if it does turn out to be on the level, look at the fine print on the finance charges. Most of these companies will give you a real good interest rate, but if you don't have the payment made by a certain date, like the 1st of the month and not the due date, they slap interest on the amount owed and some of them are not compounded on a monthly bases. The balance owed is compounded daily, so no matter how hard you try, you can't beat the interest down enough to get to the principle you owe. You will continue paying on the interest for most of the loan period. I've made this mistake and I thought I never would get this one company paid off. It may not be a scam, but some of these companies will take you for a ride. A good rule of thumb is to look and see if the interest rate is fixed. If it says that it is a fixed rate on the contract, that's the one to go with. If it says it's a variable rate, leave it alone. One old saying comes to mind. If it sounds too good to be true, it probably is. Good luck. If you are still not sure, go to your bank and talk to a loan officer.

Answer 3

Sounds like a scam. Ask them to include the 800 as proceeds of the loan and see what they say. $800 bucks is way too much to be legit.

Call the local better business bureau, and the state Atty general's office before you send them anything; and even then, I'd pass. Too many people here with credit problems getting burned by sharks every day.

Answer 4

That purely means that's what they're keen to lend you. It does not recommend which you would be able to borrow all of that. form of like in case you pronounced you may supply me 2 cans of pepsi, and that i pronounced I in easy terms desire a million. you does no longer deny that, you may have extra for your self. purely like which contain your loan, the fewer you borrow the happier they're, meaning they might lend the different 1500 to somebody else. And right for you, it means a decrease month-to-month cost than what became initially projected, and doubtless a decrease fee, and a decrease debt to earnings ratio. the fewer you owe human beings, the extra appropriate for you.

Answer 5

Boy that sounds bad, insurance on my mortgae was only 500$ and that was for 100 grand. Sounds fishy. Contact the local BBB and see what they have to say?

Answer 6

Never send them money I say it's a SCAM cause if it was Legel they'd take it out of your loan.Good Luck

Answer 7

don't send them any money
I daily receive few e-mails that my loan has been approved while I never told anyone for any loan. these e-mails are received with different senders

Answer 8

NEVER SEND ANY MONEY UP FRONT
Tell them to take the 800.00 out of the 6000.00 and see what they say

Answer 9

sounds like a scam to me.