Three Variables To Consider To Avoid Auto Loan Scam
With the advent of auto loans, driving your own car is now as easy as ABC
. Depending on your financial capability, you could either buy a brand new car or a used car. However, with auto loan financing available online, you can get to own a car of your desire. Just a word of advice, though, choose a car that would fit your purchasing power. Although, auto loans online have made buying a car easier, the monthly payment could be overwhelming sometimes, making you run out of the budget.Certainly, auto loans are there to help people fulfill your dream of owning a car. But, with the fact that the transactions are done online, you should take several safety measures into consideration in dealing with auto lenders online so that you can avoid the claws of the fraudulent dealers.
Spotting an auto loan scam is easy. All you have to do is take the following in mind when shopping for auto loans online.
Identity Theft
When applying for a loan may it be online or in a physical world, it is a standard operating procedure that you will provide your personal identification such as social security number, birth date, phone number, address and name. Knowing that all these information are hot in the eyes of identity thieves, you should be cautious in filling in the online application forms. To ensure the safety of your personal data, double check the legitimacy of the institution by either double checking with your local consumer protection program or Better Business Bureau. If any of these organizations, give out a negative feedback about the business, then don't continue with your application.
Assured Loan Approval
Unlike payday loans, auto loan approval is quite difficult to get. Auto lenders will check your credit rating history and your current financial status. Hence, if you will come across with auto loans that advertise a guaranteed approval of your loan despite your negative credit feedback and below the minimum financial status, then run away from that lender for that could be a scam.
The last time I checked, scam auto loan lenders advertise guaranteed loan approval to lure those people with bad credit history who are likely are not legible for auto loans into their den.
Advance Fee Fraud
If you meet auto loan lenders online who are asking for upfront payment then think twice before giving the money. If you will pay the advance fee, most likely you will not see your money again nor do you obtain the loan you are applying for. A legitimate lender will not require upfront fees, but only loan application fees. If the company requires you to wire a percentage of the total amount of the loan to an escrow account, the company is most likely is not a legit lender; therefore, you should not send the money.
The Internet is indeed an easy place where you can get your auto loan. However, you should be extra cautious when shopping for lenders. Do not give your personal information without verifying the identity of the company, obtain the loan that guarantees approval nor give an upfront payment.
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by: Andrew Scherer