Safety
Warning Signs of Predatory Loans and Scams
Red flags that separate legitimate lenders from operations designed to trap you in expensive debt.
Predatory lenders count on urgency and confusion. Recognizing the patterns is the cheapest form of protection.
Up-front fees before approval
A real lender takes its fees out of your loan proceeds or charges them after disbursement. Anyone asking you to wire money, buy gift cards, or pay a 'processing fee' to receive your loan is running a scam.
Guaranteed approval regardless of credit
No legitimate lender approves you sight-unseen. Variations include 'no credit check required' marketing paired with triple-digit APRs.
Pressure to sign immediately
Reputable lenders give you written disclosures and time to review. Aggressive 'today only' deadlines exist to short-circuit your judgment.
APRs above state limits
Payday and title loans can exceed 300% APR. Even when legal, they are designed to be rolled over indefinitely. Treat them as last resorts and exit fast.
