If you are suffering the repercussions of a bad credit report, you aren’t alone. Whether your credit score plummeted due to the recession, loss of a job or making poor financial decisions, there is hope for you in getting a loan. There are bad credit lenders out there today that can finance your car, home or personal endeavors. Even short-term payday loans can be obtained when you have bad credit. However, your goal is to find a reputable lender, because there are plenty of crooked sharks out there waiting to take a bite out of your wallet. The following tips can be used to help you find a reputable lender that you can trust.
Don’t Settle for the First Lender You Find
Due to there being so many lenders on the market today, you can find plenty of them using the Internet. With a quick web search, you can find a list of bad credit lenders that are local or national. Talk to four or five of them over the phone to get a better feel of their services and demeanor. If you feel like you are being pressured or have any gut feelings that the entity could be shady, then go with your instinct. There are more lenders in the sea.
Check the Better Business Bureau
The Better Business Bureau Web site is a great resource for finding out about various companies. Here, you will find a BBB rating, the amount of customer complaints and how many open or closed cases are present. The site is free to use and you can oftentimes get a lot of valuable information from this one source. However, not all businesses are listed here, which is likely because they are a new company. You can also browse through forums and review sites like Yelp and Angie’s List to see what customers are saying about the lenders you’re interested in.
Research the Current Interest Rates
You can sniff out the good lenders from the bad by doing a little bit of homework. With due diligence, you can definitely find a reputable lender. For example, a lot of the bad lenders out there will manipulate the interest rates to get more money out of you. If you know that the rates are one thing, then don’t accept rates that are well out of the ballpark. However, keep in mind that your bad credit will hike up the interest rate, so don’t expect to get the same quote as someone with good credit.
Don’t Pay Upfront Fees
One way to weed out the good from the bad is to eliminate those who are asking for upfront fees. You should never have to pay a lender upfront for obtaining a loan. This is a huge red flag and is most likely a scam. Depending on what type of loan you are applying for, some online lenders who say no credit check are likely to be fraudulent. A reputable lender such as a bank wants to know whom they’re working with before lending them any money. The exception to this is payday lenders or fast cash lenders. In most cases when applying for a payday loan or fast cash loan you wont be required to provide a credit check because those types of loans are secured by a personal check or direct access to your bank account.
Signs of a Bad Lender
Below, you’ll find a list of signs that point to a lender being predatory:
• Makes claims that no other lender will lend to you, but their company.
• After everything is all said and done, the charges and fees are much higher than you agreed upon.
• Pressuring you to take out a loan that seems risky or that you simply don’t want.
• You are ushered towards lying on your application because “everyone does it”.
• Pressuring you to take action now.
If you notice any of the above warning signs, pull out of the deal as quickly as possible. It’s better to be safe than sorry and it’s better to act now, rather than later, because by then it could be too late. When trying to find a reputable lender, make sure to always do research and never rush into a deal.