Advance Fee Loan Scam

A "guaranteed approval" loan offer, often targeting people with poor credit, requires an upfront fee for insurance, processing, or collateral before the loan is disbursed — but the loan never actually arrives.

A lender advertises loans with guaranteed approval regardless of credit history, appealing to people who have been turned down elsewhere. After the victim applies, they're told an upfront payment is required for insurance, processing, or as refundable collateral before the loan can be disbursed, and after that fee is paid the "lender" either invents another fee or disappears entirely, with the promised loan never materializing.

• Guaranteed loan approval with no credit check.
• A required upfront fee before the loan is disbursed.
• Pressure to pay via gift card, wire transfer, or prepaid card.
• The lender isn't licensed in your state or has no verifiable physical address.

• Legitimate lenders deduct fees from the loan amount — they don't require payment upfront.
• Be suspicious of any lender who guarantees approval without checking your credit.
• Verify a lender is licensed to operate in your state.
• Never wire money or use gift cards to pay a loan "fee."