Things to Watch Out For
First off, never hand over any money on verbal promises. Advance-fee loans are illegal. Fees for borrowing should be incorporated in the loan process itself and never paid ahead of time. Anybody saying otherwise is more than likely angling to get your funds commitment-free and then walk off with them.
Second, never deal with anyone asking you to wire funds. This is a red-flag signal of a scam. You ultimately have no idea where a wire is going, and no lender worth their salt needs wiring services. Normal business is handled via checks or cashier checks.
Research, research, research. Legitimate have plenty of information available about their business on the Internet. They should be able to provide you full disclosure and records on how they operate. Additionally, many websites track complaints against particular businesses, which is a great warning of whom to stay away from when looking for a bad credit consolidation loan.
You should also make yourself familiar with how basic financial fraud can occur. There are plenty of resources available describing methods and case examples. If you find yourself experiencing these scenarios, knowing ahead of time can what to look for save you a lot of trouble and money.
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