Upfront fee loan scams and how to spot one

Updated November 6, 2026

An upfront fee loan scam promises you a loan, then asks you to pay a fee before the money arrives. The money never arrives. The Federal Trade Commission's advice is plain: nobody legitimate will tell you that paying a fee guarantees you a loan.

These scams aim at people who are short on money and short on time, so they work by rushing you. If you are reading this at night with a message from a "lender" open in another tab, slow down and go through the list below.

The signs to walk away from

• A fee before you get the money. It may be called processing, insurance, a deposit, paperwork or a first payment. The name changes. The request does not.
• A promise of approval before anyone has reviewed you. The FTC warns that legitimate lenders do not guarantee a loan, or say you are likely to get one, before you apply.
• No interest in your credit history. A real lender wants to assess your ability to repay, even if it does not rely on a traditional score.
• Pressure to decide now. A limited time offer, a deadline tonight, or a caller who will not let you hang up and think.
• An odd way to pay. Gift cards, wire transfers and payment apps are hard to reverse, which is why scammers like them.
• A message that says you were approved for something you never asked for.
• A company that is hard to pin down. No physical address you can check, a name close to a well known lender, or a contact who only uses a personal email or a messaging app.

Fees that are normal, and the difference

Real loans can carry fees, including origination fees. The difference is how they are charged and when you learn about them. A real fee is written into the loan agreement, shown in the lender's disclosures, and usually taken out of the loan or added to what you repay. It does not arrive as a request to buy a gift card before you have signed anything.

Four checks that take a few minutes

1. Look up the license. Many states require lenders to register. Your state's financial regulator can usually tell you whether a company is registered there.
2. Search the company name with the word "scam" or "complaint". Also compare the web address with the company's real site, letter by letter.
3. Ask for the agreement in writing. A real lender will show you the rate, the fees and the payment schedule before you commit.
4. Call back on a number you found yourself, not the one in the message.

If you already paid

Act quickly, and do not send more money to "release" the loan. That second request is part of the same scam.

• Contact your bank, card issuer or payment service straight away and ask whether the payment can be stopped or reversed. If you used a gift card, contact the card company and keep the receipt.
• Report it to the FTC at ReportFraud.ftc.gov, and to your state attorney general or financial regulator.
• If you shared your Social Security number or bank login, watch your accounts, change your passwords, and consider a fraud alert or credit freeze with the credit bureaus.

How this applies to StarlineLend

StarlineLend is not a lender. Sending a request through our form is free, and we will never ask you for a fee, a gift card or a wire transfer to get a loan. If someone claims to be us and asks for money, do not pay. Forward the message to info@starlinelend.com and report it.

When a real offer does arrive, our guide on working out the total you repay shows how to check it. If repayment is what worries you, read about extended payment plans.

Short answers

Can a lender charge an application fee?

Some loans do carry fees, and rules vary by state. A fee should appear in writing in the lender's disclosures. Be very wary of any fee that must be paid before you see an agreement, and check the company with your state regulator.

Is a promise of certain approval always a scam?

Treat it as a warning sign. The FTC says that legitimate lenders do not promise a loan before you apply.

Go to the request form