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Protect Yourself from Predatory Unsecured Loan Lenders - Unsecured Loans Now Articles Unsecured Loans Now Articles

Protect Yourself from Predatory Unsecured Loan Lenders

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Posted on 23rd January 2012 by Sandra Thompson in unsecured loan |unsecured loans |Unsecured Personal Loans

Acquiring a loan can be a frustrating experience to some, especially those who have bad credit history or poor credit score.  Many lending companies have very strict requirements and if you have below average rating, your loan application may get instantly rejected.  Other lenders require the submission of collateral to guaranteed repayment of the loan.  If you don’t have a valuable asset to secure your debt, you may not be able to get the loan you seek.

On the other hand, there are lenders that cater to the bad credit market.  These lenders are willing to extend financing to qualified applicants despite having bad credit or despite not being able to submit collateral.  If you have a stable job or a regular income, you can still get approved for a bad credit unsecured loan.

Nevertheless, not all unsecured bad credit loan offers in the market are legitimate.  The advertisements can be misleading and if you’re not aware of loan scams, you can easily become a victim of scammers or illegal lenders.  How can you protect yourself from predatory lenders?  Consider the following reminders:

Check the lending company’s credentials.   A legitimate lending company should have a license issued by the government and should be accredited by reputable organizations in the country.  For example, you can check the lending company’s rating and track record from the Better Business Bureau or BBB.  You will also be able to check if there were complaints or law suits filed against the company.

Check the terms and conditions.  A trusted lender should clearly present the terms of repayment in the contract.  Never sign up for an unsecured bad credit loan deal without reading and understanding the fine print.  If you have any questions or concerns regarding some statements or clauses in the contract, do not hesitate to discuss the matter with the lending company’s representative.  If you are not provided with a clear explanation or if the representative is not willing to answer your questions, you definitely look for another lender.

Check the facts.  Some lenders may try to trick you into believing that you have a lower credit score than you actually have.  A lender may say that you have an extremely low score and the only way you can get the loan you seek is for you to accept the steep interest rate.  You can avoid being a victim of predatory lenders by checking your credit report before submitting your unsecured bad credit loan application.  Bring your credit report with you when you meet a prospective lender to negotiate the repayment terms.

Avoid lenders that demand upfront payment.  Borrowers should not be required to pay a fee before the fund is released. A scammer may say that you need to pay a certain amount of money to get approved for an unsecured bad credit loan.  Keep in mind that a genuine lender will never demand an upfront payment in exchange for the loan.

About the Author

Sandra Thompson is a loan consultant with http://www.unsecuredloansnow.com and has been providing consumers and business owners with Unsecured Loan since 1989. For years she has helped people with loan and credit problems especially pertaining to Unsecured Personal Loans, Student Credit Cards and Unsecured Credit Cards. Copyright 2012.

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