Protect Yourself From Predatory Lenders
- Use your financial common sense; if you can’t afford it, you shouldn’t buy it.
- Plan a realistic budget and stick to it.
- Have a savings plan so that you’ll be prepared in case of a true emergency.
- Keep your credit rating high so that you won’t be forced to go with “sub-prime” lenders, where predatory lending is common.
- Be skeptical about quick fixes and easy money.
- If it sounds too good to be true, it probably is.
- Bad credit, no credit, no problem! This is one of predatory lenders favorite lines.
- Buy here, pay here! Rent to own. No money down! You must act now! Some of their other favorite lines.
- Any loan, including your first mortgage, which uses the equity in your house as collateral should be looked at very carefully.
- Know what it is you’re signing, and never sign documents that don’t have all the terms filled in.
- If you don’t understand the contract in question, consult an attorney. Lawyer fees can be a bargain compared to the potential loss.
- Shop around for loans of any kind; never say yes to the first offer.
- Visit The Center For Responsible Lending for information about laws to protect you, or how you can get involved in the fight against predatory lending.
- Don’t let salesmen pressure you into something you aren’t sure about.
- Refuse to take out more loans to pay off already unmanageable debts.
- Beware of the temptingly low interest rates that skyrocket after you’ve had enough time to shop more than you should.
- Take responsibility for your financial well-being.
- Predatory lenders are out there taking money, but don’t let them take yours.