Fixing the Problem-- Part 3: Warning— Watch out for Scams!

If you are trying to get a real estate loan, consolidation loan or fix your credit, beware of advance-fee loan scams. They prey on people who need money and credit by guaranteeing you will get a loan or credit, but you must pay before you apply.

According to the FTC (United States Federal Trade Commission):

“…if someone guarantees or suggests that there is a strong chance they can get or arrange a loan or other form of credit for you, it's against the law to ask you to pay - or accept payment - for their service until you get your loan or credit.

Here are some points to keep in mind before you respond to ads that promise easy credit, regardless of your credit history:

• Legitimate lenders never "guarantee" or say that you are likely to get a loan or a credit card before you apply, especially if you have bad credit, no credit, or a bankruptcy.

• If you apply for a real estate loan, it is accepted and common practice for lenders to request payment for a credit report or appraisal. However, legitimate lenders never ask you to pay for processing your application.

• Never give your credit card account number, bank account information, or Social Security Number over the telephone or Internet unless you are familiar with the company and know why the information is necessary.

• If you don't have the offer in hand or confirmed in writing and you are asked to pay, don't do it. It's fraud and it's against the law.”


For more information see The Truth About Advance-Fee Loan Scams on the FTC website at: http://www.ftc.gov/bcp/conline/pubs/tmarkg/loans.htm.




From the book "Buying a Home When You Have Bad Credit-- 12 Ways to Purchase a House When You Can't Get a Home Loan" by Alexis Dey. © 2005 Mohave Publishing. All rights reserved. http://i-can-buy.com