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Step 3: Verify the Lender Before You Apply

A real lender has a license or a charter you can look up, a name that matches its paperwork, and no reason to ask for money before you get a loan. Here is how to check all three in about 15 minutes.

Before you apply, by LendCedar Editorial Team Updated 7 minute read

In short

Before you send an application, confirm three things. First, the license: a non-bank lender must be licensed or registered in your state, and you can search many state licenses on NMLS Consumer Access or with your state's financial regulator. Second, the lender of record: the company named as the creditor in the paperwork should match the one you checked. Third, the fees: under the FTC's Telemarketing Sales Rule, a telemarketer who promises you a loan may not ask for payment before you get it. A request for money up front is the clearest sign of a scam.

Upfront fee by phone
Illegal with loan promise
License lookup
NMLS Consumer Access
CFPB complaint reply
Most within 15 days
Report a scam
ReportFraud.ftc.gov
Illustration: a framed engraving of a printed document under a magnifying glass, with a numbered callout

Look up the license

Lenders must register or be licensed in the states where they do business, and your state's attorney general or financial regulator can tell you whether a company is. Two places answer that question online.

NMLS Consumer Access

A free public search run by the state regulators' licensing system. It lists companies, branches and individuals licensed through NMLS, shows each license with a sign of whether the holder is authorized to do business, and lists state regulatory actions that agencies post.

Your state regulator

The banking, financial services or consumer credit agency in your state keeps the official record. Not every state uses NMLS for every license type, so if a lender is missing from NMLS, check here before you decide it is unlicensed.

  1. Open NMLS Consumer Access and search by the company's name, or by its NMLS ID if the lender's site shows one.
  2. Open the company record and find a license for your state, not only for the state where the company is based.
  3. Check the status. It should show the company as authorized to conduct business; a pending application does not appear at all.
  4. Read the regulatory actions, if any are listed, and note the license number.
  5. Cross-check with your state regulator, whose site and complaint line are listed on our state rules pages.

Banks and credit unions work under a charter instead of a state lender license. If a lender says it is a bank, the loan agreement should name that bank as the creditor, and the bank's regulator can confirm the charter.

Match the website to the lender of record

Many loans are marketed under one name and made by another. That is not a scam in itself: an online brand may work with a partner bank, and a request form, like the one on this site, passes your request to lenders and brokers who then contact you. What matters is that you know which company is lending and that you checked that one.

  • Type the address yourself or use one from the license record, rather than following a link in a text or an ad.
  • Read the domain letter by letter. A swapped letter, an extra word or an unusual ending can mark a copy of a real lender's site.
  • Compare names and addresses. The legal name, mailing address and NMLS ID on the site should match the license record.
  • Find the creditor in the Truth in Lending disclosure and the loan agreement before you sign, and confirm it is the company you looked up.

If the names do not line up, ask in writing who will make the loan and under which license or charter. A lender that cannot answer plainly is one to skip.

Red flags of an advance-fee loan scam

The advance-fee scam is simple: you are promised a loan, then asked to pay something first, and the loan never arrives. The Federal Trade Commission lists the patterns to watch for.

Warning signs and what a legitimate lender does instead
Warning signWhat a legitimate lender does
An ad that says your credit history does not matterReviews your credit or other records before it decides
A fee for insurance, processing or paperwork before you get the moneyDiscloses any fee in the loan papers; an origination fee often comes out of the loan itself
A call, text or email offering a loan you did not ask forResponds to an application you started
Fees that are not disclosed until after you applyShows its fees in the Truth in Lending disclosure before you are bound

If something already went wrong

Stop sending money or documents. If you paid a fee, contact your bank or the payment service right away and ask whether the payment can be stopped or reversed. Keep every message, receipt and web address.

  1. Report a scam to the FTC at ReportFraud.ftc.gov.
  2. File a complaint with the CFPB about a real lender's conduct online or at (855) 411-2372. The CFPB sends it to the company; most companies respond within 15 days, and some give a final answer within 60 days.
  3. Tell your state regulator or attorney general, especially if the company is unlicensed in your state.
  4. Freeze your credit files if you sent a Social Security number or ID; checking your credit explains how to lift a freeze later.

A CFPB complaint goes faster when you have the facts in order: a short account of the problem in your own words, the key dates and amounts, copies of messages and statements, and the company's full name and contact details. Filing online takes about 7 to 10 minutes; by phone, closer to half an hour.

A 15-minute check before you apply

  • License or charter found for your state, with an active status.
  • Legal name, address and NMLS ID on the site match the record.
  • Web address typed by you and checked letter by letter.
  • No request for a fee or payment of any kind before funding.
  • You know which company will be named as the creditor.

When all five check out, gather your paperwork: the documents you need is the next step. If you have not yet chosen where to apply, start with where to borrow.

Sources

  1. 16 CFR 310.4 — Abusive telemarketing acts or practices, Telemarketing Sales Rule (eCFR)
  2. What to know about advance-fee loans (Federal Trade Commission, consumer advice)
  3. Information about NMLS Consumer Access (Nationwide Multistate Licensing System)
  4. NMLS Consumer Access is free (Conference of State Bank Supervisors)
  5. Submit a complaint (Consumer Financial Protection Bureau)

We checked the facts on this page against these sources on October 27, 2026. Which license types appear on NMLS Consumer Access varies by state; your state regulator's record is the final word.

Questions people ask

Is a lender legitimate if it is not listed on NMLS Consumer Access?

Not necessarily either way. Not every state records every license type in NMLS, and banks and credit unions are chartered rather than licensed by the state. Check with your state's financial regulator, which keeps the official record.

Can a lender charge a fee before I get the loan?

A telemarketer that promises or claims a high likelihood of getting you a loan may not ask for any fee before you get it, under the Telemarketing Sales Rule. A legitimate lender discloses its fees in the loan papers; an origination fee is often taken from the loan amount, as net loan proceeds explains.

Why does the name on my loan papers differ from the website?

The website may belong to a marketer, a servicer or a brand that works with a partner bank. The creditor named in the Truth in Lending disclosure is the lender. Make sure that company holds a license or charter that covers you.

Where do I complain about a lender?

Send complaints about a real lender to the CFPB and to your state regulator. Report scams to the FTC at ReportFraud.ftc.gov. Keep copies of everything you sent and received.

Ask lenders for real offers

Describe the loan you have in mind. LendCedar passes your request to lenders and loan brokers who may contact you with offers; you compare them and decide.

  1. The loan you have in mind: amount, purpose, credit and income.
  2. Your contact details and your consent to be contacted.
  3. A lender or loan broker may contact you with an offer. Nothing is decided until you sign with a lender.

LendCedar is not a lender or a loan broker and does not make credit decisions.

Step 1 of 2

The loan you have in mind

Between $1,000 and $50,000.

Your credit, as best you know

You pay LendCedar nothing. Lenders and loan brokers pay us for requests, and they set their own rates and terms. How we make money.

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