If you are looking to apply for an RV loan online, you need to be extremely careful about which lender you choose. RV loan scams may not be the norm today, but they still happen and easily, so when you are dealing with someone you haven’t met before.
At first glance, it can be hard to tell the difference between a legitimate lender and a scammer from their offers. However, the following red flags should help you spot a loan scam more easily.
1. The lender is pressuring you to sign an agreement
The end goal of a scammer is to defraud you of your money, so they usually will employ all sorts of gimmicks to pressure you into accepting their loan offer. The most common gimmicks include:
- Branding their loan offers as “one-of-a-kind” deals that you won’t find elsewhere.
- Offering you lower interest rates if you sign an agreement with them immediately.
- Urging you to start sorting the paperwork when you haven’t discussed the loan terms and rates yet.
If you notice an online lender is bent on getting you to close a deal with them, you should always be on the lookout. Chances are that you might be walking into an RV scam.
2. The lender doesn’t need your credit
The odds of your getting approved for an RV loan will largely depend on your credit score and credit history, which is why you should be wary of lenders who promise to approve your loan application without first reviewing your credit history.
Do not let having a poor credit score excite you into signing a deal with such lenders. Instead, search for legitimate lenders who will offer you the best loan rates you can get with your credit score.
3. The lender requests sensitive, unnecessary information
If a lender ignores your credit history and asks for your personal or banking information instead, this is a major red flag.
Such information is usually irrelevant to the RV financing process, so regardless of whatever excuse a lender gives you, never make the mistake of providing them with any sensitive information about yourself, especially when it can be used to defraud you.
4. The lender requests an unsecured payment form
Be especially wary of lenders who request unusual forms of payment, such as gift cards, for your loan transactions. Unlike most other payment channels, gift cards can’t be traced or refunded, which is what makes it a popular option among scammers.
If the lender you are shopping at offers you several payment channels, all of which don’t allow or guarantee refunds, avoid such lenders and seek others who offer more secure options.
Falling victim to an RV scam can take years to recover from. If you plan on applying for an RV loan online, ensure you do thorough research on the lender to ascertain if they or legitimate or fraudulent. With sufficient research and the tips above, you will easily avoid the deceptive RV scams online today.