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Legitimate offers of credit do not require an up-front payment. Although legitimate lenders may charge application, appraisal, or credit report fees, the fees generally are taken from the amount borrowed. And the fees usually are paid to the lender or broker after the loan is approved. Legitimate lenders may guarantee firm offers of credit to “credit-worthy” consumers, but first, they evaluate the consumer’s creditworthiness and confirm the information in the application. Canadian law enforcers caution that it is highly unlikely that legitimate Canadian lenders would take a risk on U.S. citizens whose credit problems preclude them from getting a loan in the U.S. You could be the victim of what's called "yo-yo financing." In this situation, a dealer permits a buyer — typically someone whose credit is shaky — to take possession of a car before the financing is actually complete. A short time later, however, the buyer is pulled back to the dealership when the financing falters. He's faced with having to pay higher interest rates and fees. Sometimes the dealer demands a larger down payment, too. How Emergency Student Aid Works
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