Some payday loan lenders intentionally try to deceive you. The truth behind payday loan sharks and how they use sneaky tactics to trap you into an agreement that is designed to prolong your financial nightmare instead of relieve it.
At times we all fall into a predicament where we need extra money because of an unexpected emergency. Kids get sick and cars break down at the worst possible time. Sometimes, you don’t want to ask friends or family members to borrow money because it is too embarrassing. Others may have less than perfect credit which then limits the outside options available to solve their financial crisis. What do you do? Looking at the option of obtaining a payday loan may seem simple. Some payday loan lenders oversimplify the process of getting a cash advance. And there are some lenders that flat out want to take advantage of you. Here are some signs you can look for when trying to determine if you’ve encountered a payday loan shark.1. The Lender Wants to Make the Deal Quick.Some payday loan lenders really don’t want to help you out of your situation. They do not want you to get out of debt because it’s to their benefit that you stay in your situation so you keep using their services. If the payday loan lender you’ve found is trying to “fast talk” you or they don’t allow you to take your time with your decision – beware. These lenders get worried you might change your mind if you have time to think the lender.2. The Lender is Too Vague in Answering Your Questions.You should be able to ask questions and gain a better understanding of how the loan process will work. Some lenders don’t like to answer questions or they’ll “beat around the bush” when they provide your answers. With these payday loan lenders, you may find yourself more confused than when you first arrived. 3. The Lender is Too Pushy or Too Aggressive.Entering into any loan agreement should include careful consideration. Some unscrupulous payday loan lenders will make you believe that a payday loan is the ONLY answer to your financial problems. They will also usually encourage you to borrow the highest amount they can qualify you for instead of only the amount you really need. Some practically shove the pen down your throat to sign the papers and make it final.4. They Charge a High Interest Rate and Additional Fees.The bottom line is that this is how payday loan lenders make their money. They do, however, have a choice of what fee rate to attach to the loans they provide. Some unsavory lenders will charge the maximum loan rate allowed by law. They also tend to “nickel and dime” you with application fees, deposit fees, and/or processing fees.5. The Lender is a Private Lender.Many people have been scammed into getting payday loans through private lenders. These lenders often make it appear more attractive by telling you they can do things other lenders cannot. Certain types of loans are governed by different laws, so it’s important to find out the type of loan these private lenders are actually offering and what rules apply in terms of fees, repayment, and default.There are many payday loan lenders out there that provide a valuable honest service and sincerely want to help you out of an urgent financial situation. Some lenders, however, are only trying to take advantage of your financial distress and they want you to stay in debt because that will enable them to make more money. Make sure you carefully research your payday loan lender options before entering into an agreement so that you make the right decision.
Michael Tagnani is an SEO expert, Internet marketing enthusiast, and an integral part of the Spotya team. Spotya is challenging the negative image payday loans have received in recent years by empowering their customers with valuable information, useful resources, and the lowest fees! Find out why we're different than other online payday loan companies - visit http://www.spotya.com