When you have bad credit, it seems almost impossible to find lenders who are willing to loan you money for that dream home you have always wanted. And scam artists know this. They create fake bad credit loans online to attract people who don’t have the best credit. However, even people with bad credit can obtain legitimate home loans, but you must first know how to look past the scams. Continue reading further to determine what you need to know before applying for a bad credit loan.
When Bad Credit Loans Have Fees or Unclear Surcharges
Lenders try to charge you a fee to process your loan. Therefore, even if you don’t get approved they still manage to make money off of you. Most often, this means the company you are dealing with is trying to scam you out of money.
The company doesn’t provide you with clear-cut information about their fees. They may call you on the telephone or send you an email demanding that you pay fees before you even have access to the money.
Tips for Dealing with Bad Credit Loan Scams
Any lender who is not interested in your credit history, is more than likely a scam artist. Why? No one will loan you money without knowing how likely it is that you will be able to pay it back. Otherwise lenders would not be able to stay in business. This is how lenders decide whether they will loan someone money or if they will deny the loan.
A lender who is not registered in your state should signal a red flag. Any legitimate lender will be listed.
To check whether the lender you are interested in doing business with is registered, check with the state Attorney General’s office or your state’s Department of Banking or Financial Regulation. You can locate the phone numbers for these businesses by looking under the Blue Pages in the telephone directory.
Legitimate Bad Credit Loans for First Time Home Buyers
There are many different federal mortgage programs that may be able to help you in your quest for obtaining a bad credit home loan. You can contact one of the HUD-funded agencies that can help you determine what your options are.
- You can also contact your local government to see if they offer any local home buying programs that you qualify for.
- Check the Blue Pages in your phone directory for your local office of housing and community development.
- You can also contact your mayor’s office or your country executive’s office for more information.
Bad credit loans are a dime a dozen, especially since the Internet makes it so easy for scam artists to target first time home buyers who are desperate for becoming homeowners. However, for each legitimate bad credit loan there are thousands of fake bad credit loans that make their way onto the World Wide Web. By following these helpful bad credit loan scam spotting tips, you will be able to obtain the help you need instead of falling victim to bad credit home loan scams and the scam artists who create them.
There are far too many bad credit loans available via the Internet that make false promises to reel in customers. These fake bad credit loans target under privileged populations and people with bad credit who are interested in obtaining home loans. Learn what to look for when spotting fake bad credit loans and where first time home buyers can seek assistance when they are interested in purchasing a home when they have bad credit.