I received a letter from Virtual Lending Source saying I'm preapproved for a loan. Is it legitimate?

Answer 1

What happens is that a lender goes to the credit bureau, and tells them something like, "We'd like a list of people that have credit scores between 600 and 650, that live in the zip codes on this list, and live in single family homes" etc... that's the demographic profile of people that are most likey going to be interested in a loan, and that would most likely qualify for the loan. It can include many more specifics than those, but that's kinda what they're looking for. The lender then sends preapproval letters to the people on the list that the credit bureau gives them.

You would qualify if your credit hasn't changed since they got your info, or if there aren't any other unexpected things show up, like if you were unemployed or something.

By the way, their check with the credit bureau will show up as a "soft inquiry" on your report - it doesn't go against your credit rating at all. If you do officially apply for this loan (or any other), and they pull your credit report, those inquiries are considered hard inquiries, and if you have too many at once, it will go against your score.

If you want to "opt out" of the bureau giving companies like this your info (means you would be less likely to get preapproved offers), you can opt out with the bureaus themselves, there's Experian, Equifax, and Trans Union.

Answer 2

Virtual Lending Source

Answer 3

If it's not a scam, it's a fishing expedition by a subprime lender. They are hoping you will buy a car you can't afford and pay them an outrageous amount of money in finance charges.

Answer 4

if you did not request a loan what do you think -- it could be very legitimate but i would look at the rates before i did back flips!!!

Answer 5

Read the fine print. If you didn't apply for a loan, its a scam or near-scam.