Beware of Guaranteed Approval Loans

Getting a 100% guaranteed approval loan is not only harder than it seems, legitimate lenders cannot do it. The advertisements may sound tempting but if they sound too good to be true, they probably are right? In fact, the more they say you are guaranteed to get approved, the more likely it’s a scam. Scam artists work night and day to fake their legitimacy, so it’s very important to do your research.

Consider these red flags:

  1. The phrase "guaranteed loan" should stop you right there. Banks and lending institutions offer loans to credit-worthy individuals and businesses, period.

    If you are told your credit won't be checked, why do they want your social security number?

  2. "Bad Credit. No Problem." is another common advertisement scammer's use. If lenders do not charge you higher fees and interest due to higher risk, they would go bankrupt if just a handful of borrowers decided not to pay.

    If are not careful and agree to a loan contract without completely looking over the lenders terms and conditions, you could wind up with a huge legal headache. By law, lenders must disclose all fees, interest, finance charges, APRs, repayment schedule in the loan documents

  3. "Available in all 50 states". Some states have usury laws setting caps on high-interest loans or they completely ban payday loans outright. You are being taken if any lender or representative tells you they can approve you for a loan anywhere in the United States. To report a violation, contact your state Attorney General.

    If you are dealing with a financial emergency and need quick cash, try asking your friends and family first. Otherwise, seek extensions on important bills due. If you do decide to apply for a payday loan in-store or online, make sure the lender is registered to lend money in your state.