Complete guide
Answers, tradeoffs and next steps
Use the sections below to evaluate fit, not to predict approval.
Advance-fee promises are a major red flag
FTC warns about companies that promise or strongly imply a loan will be delivered if the consumer first pays a processing, insurance or application-type fee. The strongest red flag is not merely ‘a loan has a fee’; it is a promise or high-likelihood claim tied to paying money before the promised credit is delivered. FTC_ADVANCE
The checker must therefore ask what the fee is for, who is requesting it, when it is due and how the consumer is told to pay.
| Signal | What the checker asks | Action if unresolved |
|---|---|---|
| Guaranteed/high-likelihood approval | Is credit promised before underwriting? | Stop and verify |
| Upfront payment | Is payment required to unlock promised credit? | High-risk; do not pay for a promise |
| Unusual rail | Gift card, crypto, wire or person-to-person transfer? | High-risk |
| License mismatch | Does official state record match legal entity? | Stop commercial flow |
| No agreement | Can the actual creditor/terms be identified? | Do not continue |