Tips for Avoiding Predatory Loans

How to Avoid Predatory Loans:

1. Pay your bills on time to ensure you have a good credit history. Make sure your credit history is accurate by reviewing your credit report every year.
2. Be an informed consumer. Make sure to shop around for the best deal. If a lender is unwilling to give you the information you need to comparison shop, you probably don’t want to do business with him or her.
3. Be careful of lenders who tell you they don’t care about your credit history or how much you earn. Many of these places charge higher interest and higher fees.
4. Don’t respond to advertisements that make lending sound cheap and easy.
5. Be careful of home improvement contractors that promise to get you a loan.
6. Most credit insurance is optional. Lenders cannot require you to purchase credit insurance from their company. There may be better alternatives to credit life insurance, such as a life insurance policy purchased separately.
7. Ask friends, family, and credit counselors for advice before applying for a loan. Take someone along with you when you talk to a lender.
8. Take your time before deciding on the best loan or lender. Don’t let lenders pressure you into a decision before you are ready.
9. Keep copies of all documents lenders give to you.