More people are shopping for loans online, and scammers know it. Some buy lists of people who have searched or applied for loans. They then reach out with offers of "guaranteed approval" or loans with no credit check. Their goal is to collect a fee or your personal information and then disappear.

Red Flags to Watch For

• An offer you didn't ask for. Be cautious with loan offers that arrive by text, email, social media, or phone, especially from a company you've never heard of.
• Approval promised before anyone reviews your credit. A legitimate lender reviews your credit history and application before making a firm offer.
• A fee to "release" your money. If you're told you're approved but must pay first for "insurance," "processing," or "paperwork," walk away.
• Pressure to decide right now. Scammers push you to act before you have time to ask questions or compare options.
• Unusual payment requests. Be wary if you're asked to pay with gift cards, wire transfers, cryptocurrency, or to send money to an individual instead of a company.
• A lender you can't verify. Legitimate lenders are licensed to do business and can be verified through your state's financial regulator.

How to Protect Yourself

• Keep your Social Security number and account details private unless you contacted the lender and know why the information is needed.
• Search the lender's name with words like "scam," "complaint," or "review" before applying.
• Read every document before signing and ask questions about any fee you don't understand.
• Know which fees are normal. Legitimate lenders may charge application or appraisal fees and will disclose them clearly. No legitimate lender will ever guarantee approval in exchange for a fee.
• Compare offers from more than one reputable lender.

Where to Turn

When you're ready to borrow, start with a source you know:

• Your bank
• A lender recommended by someone you trust
• A company you've verified through your state regulator or the Better Business Bureau