Lying on a personal loan application is a bad idea
Instead of lying to get a bigger loan, shop around for lenders that can give you the most money based on your current financial situation. We are an independent, advertising-supported comparison service. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy.
However, intentionally lying on a personal loan application is considered fraud, and it can have real consequences. Bankrate’s editorial team writes on behalf of YOU – the reader. In addition to these criminal consequences, you’ll face a long list of other repercussions that could impact your financial future.
For instance, putting an incorrect salary or falsifying documents would qualify as lying — and can impact you in serious ways. To get a loan, you also may be asked to provide pay stubs, tax returns or bank statements, but that doesn’t always happen. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. In 2014, an Ohio woman was sentenced to 14 years in prison for using other people’s identities to take out loans at LendingClub and other institutions. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
You could face serious legal consequences and make it harder to take out a loan down the road. When people do lie on their loan applications, they often use one of these untruths: While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. Knowingly providing false information on a loan application is considered lying and is a crime.
We value your trust. An example: In 2016, the Michigan attorney general’s office filed criminal charges against a state representative accusing him of producing fake income statements when he applied for a personal loan in 2010. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Our experts have been helping you master your money for over four decades. Overall, the consequences that can come with lying on a loan application — everything from a lowered credit score to jail time — aren’t worth the rewards.
We maintain a firewall between our advertisers and our editorial team. For example, online lender Prosper says that it verifies employment, income or both on about 61 percent of its loans. If an insufficient credit score is the main thing holding you back from a loan, you can also take steps to improve your credit score before applying. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy. Bankrate has answers.
This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. The information on this site does not modify any insurance policy terms in any way. Share this page But this compensation does not influence the information we publish, or the reviews that you see on this site. In those cases, the company cancels the loan before it is funded. Financial institutions have certain precautions in place to protect them from giving a loan to an underqualified borrower.
So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Prosper says that 11 percent of the applications it verifies contain false or insufficient employment or income information. If you lie on your loan, you could also lose your loan.
The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Some forms also use special embedded coding to track whether a document has been altered, modified or edited.
When you fill out a loan application, you’ll be asked to provide your salary and employer information. For many lenders, verification could be triggered: The firm cautions investors against relying on self-reported information when making investment decisions. However, while it might be tempting to lie on a personal loan application given that information is not always verified, it is strongly discouraged. Programs and software have special features in place to confirm information and flag inaccuracies. Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate.
Rep. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Any of these lies and more are subject to penalty by law.
With other companies, you may have to immediately repay loan funds you’ve received if the lender learns that you’ve misrepresented yourself.
Lying on a personal loan application is a bad idea
p> Bankrate follows a strict editorial policy, so https://cars45.co.ke/listing/bmw/x6/2010 you can trust that we’re putting your interests first. Prosecutors allege she used the money to help finance a $1.85 million home. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Our goal is to give you the best advice to help you make smart personal finance decisions. Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. It won’t take long for that uncontrollable debt to affect other areas of your life, too, like your ability to work and maintain a stable home. When you work with a specialized lender, you are more likely to gain approval on a loan that actually works for you. For example, there are some lenders that offer loans specifically for borrowers with bad credit, while other lenders may specialize in loans for students or loans for members of the military.
Therefore, this compensation may impact how, where and in what order products appear within listing categories. We do not include the universe of companies or financial offers that may be available to you. Even if you’re having trouble qualifying for a loan with one lender, you’re not out of the running for all loans.
Even if you don’t get caught lying on your application, you are still causing harm to yourself. This content is powered by HomeInsurance.com, a licensed insurance producer (NPN: 8781838) and a corporate affiliate of Bankrate.com. “Applicants supply a variety of information regarding the purpose of the loan, income, occupation, and employment status that is included in borrower listings,” the company writes in its prospectus. “We do not verify the majority of this information, which may be incomplete, inaccurate or intentionally false.” We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens.
Brian Banks was charged with two counts of uttering and publishing false information and two counts of using “a false pretense” to get the $3,000 loan from Detroit Metropolitan Credit Union. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. For example, your credit score can take a large hit, and you may not be able to take out loans going forward. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
You have money questions. There are lenders out there that offer bad-credit loans, low-interest-rate loans and personal loans that take more than just your income and credit into account. HomeInsurance.com LLC services are only available in states were it is licensed and insurance coverage through HomeInsurance.com may not be available in all states. You may pay a little more in fees or have higher interest rates, but you won’t have to risk lying on your application just to get approved. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
Paying down debt, keeping old accounts open and refraining from lots of credit card or loan applications are all ways to boost your score and help you qualify for better rates and terms. Our loans reporters and editors focus on the points consumers care about most — the different types of lending options, the best rates, the best lenders, how to pay off debt and more — so you can feel confident when investing your money. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. Below we’ll cover how lenders verify the information you submit with your personal loan application and what can happen if you intentionally falsify documents or other information. Lying on a loan application may seem harmless at first — after all, a lender may not even check your inflated income claim or current employment status.
The offers that appear on this site are from companies that compensate us. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. Bankrate.com is an independent, advertising-supported publisher and comparison service.
The most serious of the charges carries a prison term of 14 years upon conviction. These loan requirements are put in place for a reason, and if you lie on your application to get a loan, you could get stuck with a huge debt that you cannot repay. Our editorial team does not receive direct compensation from our advertisers. Your application and any supporting documentation will be checked for inconsistencies and inaccuracies, using public records and financial history to confirm the information you provided.
Here’s an explanation for how we make money . Technology helps, too. Going to prison for lying on an application is rare, but it does happen. For instance, a North Carolina woman was sentenced to 60 months in prison in 2015 after she pleaded guilty to providing false information regarding her income and assets to obtain personal loans.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
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