When you're in a financial crisis, you become vulnerable to any solution that promises to get you out of the fix. But this is the time when you should be extra careful. So whenever you receive an email notification or land into one of those sites with a personal loan offers, with no credit check or no interest offer, be woke. Chances are that it's a scam, just like many others in today's flooded market.

Most legitimate lenders have no time to send random emails to people, that too with no interest or credit check. But with the numerous luring offers, how do you identify the main signs of personal loan scam? Find out more below.

Restricted Decision-Making Time

In most cases, emails or messages from personal loan scammers, push borrowers into making hasty decisions. For instance, they instill fear in you by telling you that you will miss out if you don't make up your mind quickly. So there's typically not enough time to conduct your research to certain their legitimacy.

What to do. Ensure you always take your time sourcing out information on the unsecured personal loans Canada and their history, before accepting any loan. No matter the urgency.

No Credit Checks

While there are few genuine no credit lenders, most of them are scammers. And they normally lure customers by telling them that they don't bother with your credit history, no matter how bad your past financial crisis was.

What to do. Carefully evaluate the terms and conditions of such companies to detect any hidden agenda. Remember. businesses are there to make profits, so genuine ones rarely loan to individuals with bad credit records. Not unless in special cases.

They Offer Long " Free-payment" Period

Most genuine loan lenders will demand that you start making your repayments as soon as possible. Therefore, if you come across one that can comfortably allow you to stay for a prolonged period, such as a year before demanding repayment, then they could be planning to scam you.

What to do. Source out for lenders with favorable repayment terms and period. The early you can start repaying, the better.

Require Fee For Loan Approval

You're already in a financial crisis and the last thing you want is to cough out more money to secure a loan. If a lending company requires you to pay a given amount in the form of fees or tax, then they aren't genuine.

What to do. Only forward your personal loan application to lending institutions with no front fees/charges. There are so many available options online. You just have to look further.

Suspicious Email Messages

This includes unprofessional emails that are full of grammatical mistakes, punctuation and even wrong use of capitalization. If a company is genuine then it must be run by experts who have successfully undergone training. And that includes polishing their language skills.

What to do. While it's okay to ignore a few mistakes here and there, do not overlook the obvious ones. If your gut feeling tells you that there's some suspicious about the kind of message sent to you, then listen. It's better to be safe than sorry.


Finding yourself in a financial crisis is frustrating and confusing at the same time. And because of this, you become vulnerable to making rushed/wrong decisions when applying for a personal loan. But not anymore. We hope you find the above points helpful in helping you avoid being scammed.