3 Steps for Avoiding a Predatory Lender

There are many predatory lenders out there. For example, payday loan scams are more common today than ever before. As somebody looking to borrow money, it is imperative that you focus your time and attention on locating a reputable lender.

If you find yourself doing business with a predatory lender, it won’t be long before you realize you made a mistake. Unfortunately, it is often too late at that point. Instead, you are in too deep to do anything about it.

Rather than risk involvement with a predatory lender, here are three steps you can take:

  1. Do your homework. If a deal sounds too good to be true, it probably is. This is particularly true when it comes to lenders. The more research you complete the easier it becomes to pinpoint the wrong lenders and focus on those that have a sound reputation for providing competitive products in a fair environment.
  2. Ask questions. Do you have reason to believe a lender is trying to take advantage of you? Rather than go down the wrong path, ask question after question until you feel comfortable with where you stand. If a lender avoids your questions, there is a good chance they have something to hide. It is then time to move onto lenders that are willing to answer your questions, in full detail, to ensure your happiness.
  3. Know what is out there and what you are looking for. Many people get mixed up with a predatory lender because they don’t know what they want, what else is out there, or how to compare their options. If you keep an open mind, if you continue to research all your choices, it won’t be long before you are making a confident decision.

By taking these three steps, you will find it much easier to avoid predatory lending practices.

2 Responses

  1. […] if you have some knowledge of how to avoid a predatory lender, you may still find yourself in a bad spot at some point. If this happens, you don’t want to sit […]
  2. I need a loan right away. My credit is not all that great. Me and my family and my grandkids are homeless right now and i need HELP.
  3. Hi there I haven't bought a house so I don't know a good score to have the hiehgr the better obviously. Some good ways to repair credit are to: pay all your bills on time, keep checking accounts in good standing, pay off credit cards as soon as you possibly can and avoid the high-interest store ones, and just use common sense. I don't know what kinds of vehicles you drive, but if you can keep car payments to a minimum by driving an economy vehicle it will help to be paying a couple hundred extra on credit card bills every month. As for counseling and financial advice, I would start by talking to someone at your bank or credit union. That would keep your fees to a minimum, if they even charge you for it at all. Good luck, and be patient. Don't give up good credit doesn't come back quickly. One more thing- if you use the online free credit report services, your rating can actually go down, because that is considered an inquiry. Hope that helps! Was this answer helpful?

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