When you have bad credit it is not so easy to get a loan. If your Credit score is 620 or lower you are considered a bad credit risk. So what that means is; that if you are able to get a loan, the interest rates will be sky high. It also makes you prey for Loan Predators. Loan Predators are people who play on others that have credit problems and take advantage of that. They know the person is desperate for a loan. Loan Predators will sell you a bag of rocks if they can just to get your last money out of you. Just like you wouldn’t buy a watch from a man who comes up to you and shows you one from his coat pocket; there are tell tale signs to let you know if the person offering you a loan is legitimate or not.The first thing is not to go for unsolicited market ploys.
Some of the more common one’s we all experience are:
FLYERS which are either thrown on your doorstep, slid under your door, attached to the car windshield wipers, tacked up on the telephone pole, direct mailers in your mail box and even emails; even though some may be legit there are those others that aren’t. You have to check the reputation of the source soliciting first.
Telemarketers who call and try and pressure you on the phone.
Some tell tale signs that you are dealing with a fraud:
The person is a fast talker
– They seem like a smooth operator- but their speech seems scripted , they also keep repeating the same things over and overlook
The interest rates seem unusually high
– Yes if you have bad credit the rates will be higher but if you were quoted a rate that seems extra high that’s a red flag
The lender uses high pressure tactics to try and make you sign on the spot
– Anyone who does not give you time to think has an ulterior motive
If they say your bad credit is no problem that is a big tell tale sign
– People who give credit to those with bad credit are called sub lenders. They do not give good interest rates period.
The lender encourages you to lie on a loan application
– Do not lie on any applications it will come back to bite you nor should you sign any blank documents period. IT IS AGAINST THE LAW TO DEFRUAD A LENDER!!!
You are pressured in to signing something you don’t understand or a loan you don’t want
– If in doubt do without, don’t stick yourself with a loan you can’t afford to pay back and get a lawyer or someone else to go through what you don’t understand first
Don’t believe them when they say the loan will fix your financial problems
– That’s a lie, the only thing that fixes your finances is not to spend money out and then try and pay back what you owe
Go with your Gut. If it’s telling you something doesn’t feel right then 9 times of 10 you are right. Always check the credibility of the supposed lender against public records or look up the company they are supposedly with if it exists at all. If it is a legit company; call and ask if the person in question is one of their lenders and if what they told you is their policy. If you still do not feel secure don’t do it. It’s your life and you are the only one who can safe guard yourself against loan predators.