Are There Loan Lender Scammers Around??? How Do They Money Money?

Question

I keep seeing a guy posting ads offering loans to "all categories of people, firms..." and to almost "any part of the world....bad credit OK.....at low interest rate".....

I wonder could this be a scam? I'm in bad need of money and need loans and this ad sounds appealing, but could it be a scam??

what if they're terrorists' fund or other black money and I got loans from them not knowing their illegal , but anyway I pay off the debt , will I get involved in their crime??
will I be sued??

I don't have bad credit history(actually have no credit history) but have no house to get mortgage too. that's why I resort to this kind of lenders. Could they be scammers? If so, how do they make money?? Or they may just be black money fund?

SORRY, TYPO. I meant How Do They MAKE money?

Answer 1

most of the folks want up front money and either do not delivery on the loan or their terms are so outrages that no one will accept them but they keep you up front money or they could be be trying to get information from you that will allow them to tap into your accounts -- suggest you get to know your local bank loan officer and see him for your needs!!!

Answer 2

Of course there are scammers, and most of them try to look legit. The best thing you can do is to look in your own area, the yellow pages of your city. Get the feel, and ask free questions.

The worst place is in my opinion the internet. You don't know who is asking for up front money, you personal information, like your SSN, and your credit history. Many sad stories of sending in $500 with an application, and they don't even ask you normal questions like where is the property located.

Be ware of smoke and mirror rates, too: They will advertise low rates, and then switch you to higher rates because you don't qualify---and of course never will. And for Pete's sake, don't get a loan that you NEVER actually pay down the principle: you will pay forever, until it eats you up.

How do they make money: First if they are NOT legit, they keep your application money, and you don't get anything, or ever here from them again.

If they are legit, they get commissions from the company they work for, based on closing your loan.

Hint: if you have no history, then put together $1000 in a savings account. (I know: I heard you don't have money, and need to borrow). Then borrow $1000 against that (called a secured loan). Pay that back over a years time and presto, you have a history of being on time.

Answer 3

I don't think you have to worry about funding terrorists.

Many of these "too good to be true" deals are just that. They ask for up front fees for a bond or something. You pay, and oh gee, you don't qualify. Some are just looking to collect your personal info.

Most of the actual loans are extremely high interest rates. Folks with bad credit are considered high risks. That means high interest.

Instead of trying to create more debt, look to ways of paying off your debt. Decrease your spending and increase income.

Make a strict budget. Eliminate the extras -- cell phone, eating out, premium cable and internet, etc. Put every penny you can squeeze out of that budget on the highest interest rate debt, while paying minimums on the rest. When the highest rate is paid off, move to the next, till they are all paid off.

Bring in more money by getting a second job (pizza delivery is flexible hours), have a garage sale, mow lawns, etc.

It's possible to pay off your debt in 2 or 3 years if you work at it. Plus you will built yourself a good payment history.

Answer 4

Hi,

Most of the scammers or small timers who will collect some upfront money in the name of processing fee and run away with it. You should avail of any loan through reputed lenders. You can visit http://webmoneymanager.info for some useful tips and info on obtaining a loan. Good luck!