How to Identify a Cash Advance Scam

Getting involved with a cash advance scam can potentially cause you many problems. The scams hurt thousands of consumers every year, and you need to avoid them at all costs. Here are a few ways that you can identify a cash advance scam.

Upfront Fees

One of the biggest red flags that you are dealing with a cash advance scam is when a lender asks you for an up-front fee before you can get a cash advance. Requiring a fee in order to give you a cash advance basically defeats the purpose of the cash advance. Those that are seeking a cash advance are typically down to their last dollar. Therefore, asking these people for money does not make sense. Legitimate cash advance lenders know that you do not have any money, and they will not charge you a fee until after you have received a cash advance. If you start to work with a cash advance lender, and they ask you for money up front, you should stop working with them immediately.

Not Concerned with Credit

Another way that you can be tipped off to a possible scam is when a lender does not show any interest in your credit information. While some legitimate cash advance lenders will not pull your credit file, you should still be cautious when you run into this type of lender. Many scam operations' advertisements will say, "Bad Credit OK," or use similar phrases. Most legitimate lenders are going to evaluate your credit even if they are willing to work with those that have questionable credit histories. Therefore, you should become skeptical when this comes up.

Phone Offers

Something else that you will want to look out for is when a cash advance is offered to you over the phone. Most of the time, someone soliciting customers for this type of business or conducting it over the phone is involved in a scam. If someone calls and offers you a cash advance, you need to hang up the phone immediately. There is little chance that this is a legitimate offer, and getting involved will likely end up hurting you in the long run.

Slight Name Variations

Another sign that you might be dealing with a cash advance scam is when a company has a slightly different name than a well-known brand. For example, you might come across a cash advance company that has a name that is only one letter different from a large national cash advance chain. When this happens, they are typically trying to get business off of the legitimate company and take advantage of unsuspecting customers.

Unlicensed Companies

Before doing business with a cash advance company, you will want to make sure that they are licensed in your state. Every cash advance lender has to be licensed with the state in which they do business. If they cannot prove their credentials to you, you need to walk away from the deal.


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