With loan rates bottoming out, borrowers may feel hurried to get out there and snag a low rate for a mortgage refinancing or debt consolidation as quickly as possible. But thanks to con artists out to take advantage of borrowers, a blind rush at the most appealing numbers could lead to disaster.
Credit.com offers the following advice to steer clear of illegitimate lenders:
* Make sure you’re using a secure site. Look out for the “https” prefix on the URL.
* See if the lender has any complaints lodged against it by searching online for the company name along with the word “complaint.”
* Try to find a company’s physical address. If a lender operates from a P.O. Box, that’s a red flag.
* Don’t pay upfront for a loan. If a company asks for fees in advance, and especially if it demands you wire it money, it’s quite possibly securing a no-interest loan from you that it will never pay back.
Protect Your Identity: Watch Out for Online Loan Scams [Credit.com]