If you have bad credit, finding a loan is already difficult since you have to deal with high interest rates, unfavorable terms, and rejection from lenders. You should shop around before accepting the first offer you receive from lenders. To avoid scammers who try to take advantage of your situation, be on the lookout for red flags: Application fees and upfront fees: It is unlawful for lenders to charge a fee for simply filling out an application. Receiving unwanted solicitation: You should be the one to initiate contact with a lender rather than the other way around. Receiving constant phone calls and snail mail is a warning sign. Guarantees: No lender can promise you a loan without first looking at your credit score, income, and other important personal information. Pressure from lenders: You shouldn’t feel pressured into taking out a loan if you are not happy with your potential loan terms and lenders shouldn't push you to give out your personal information (especially if it's over the phone) or take out a loan. Questionable company names: Double check the lender’s name and physical address to make sure they are not trying to use a name that is similar to a reputable lender.