I’m sure you’ve seen it advertised; low interest payday loans approved for those with low or no credit, with even the ability to build credit when followed on the terms agreement. Sounds great right? Building credit and borrowing money to keep yourself afloat until next payday could just be to good to be true! Well, i’m sorry to say…it is.
This is What We Call ‘Predatory Lending’
Predatory lending is a sneaky practice typically targeting those of whom are in need of immediate cash. These lenders can often have a borrower agree and sign using manipulative tactics, allowing the lenders to practice abusive, unfair, and borderline unethical terms. Payday loans are apart of predatory lending, often reeling in borrowers with a 100% approval guarantee, without explaining the high interest and fee’s that are tagged on. This system in no way is designed to help the borrower, rather for the lenders to capitalize off interest and fee’s.
Legal Status of Payday Loans by State
Predatory lending is not only found in Payday loans, and has been successful in merging into mortgages, auto loans, or any type of consumer debt. These type of loans are designed to keep the borrowers in a string of debt causing financial hardships by inflation and outrages interest rates and fees.
How to Protect Yourself from Becoming the ‘Predators Prey’
- Sign up at a Credit Union: If you are interested or in need of either or a short term or even long term loan because of a financial hardship, it is best to start at a local credit union. Credit unions typically offer a interest rate and have no interest in making thousands of dollars off the borrower. Credit unions are ran by the people, for the people.
- Avoid Unlicensed Loan Officers: Also, it is important to check the credentials of a loan officer or any body you are working with involving mortgages or buying a house. Making sure that your loan officer is licensed in your state can save you thousands in the long run.
- Question High Interest Rates and Fees: Shop and compare different loans, this maybe hard understandably if you are in need of the quick cash, but it will benefit you and your money in the long run.
- Don’t Be Rushed: If you feel you are being rushed into signing for a loan, this can be an obvious sign or predatory lending. Make sure you read and understand everything you are signing, and don’t allow yourself to sign up for repayments you cannot afford.
Wan’t to learn more?
Click Here
Want to sign up for a free consultation?
