If you have poor credit and you need a loan, a legal loan shark may be your only option. But with stricter terms and higher interest rates, these are not ideal lenders. If you're intimidated by the process or you don't know where to start, follow these tips to help you learn how to find a legal loan shark.
Look beyond the name. The first step is realizing that you may not find a legal loan shark, per se. It's just not a common term used among companies who do this kind of lending. So expand your search to include high-risk lenders, companies specializing in loans for people with bad credit and independent lenders. All of these terms may help you find what you need.
Look for lenders that specialize in bad credit. The reason that you need such a lender is probably because you can't get approved for a loan anywhere else with such bad credit. Your average bank or credit union is not willing to take the risk with low credit scores. You'll need to look specifically for bad credit lenders. Search online or in the phonebook and ask friends and family for recommendations.
Do your research. After you have found a few companies, do your research before you jump at the first company willing to hand you the money. Find out about the history of the company, talk to past customers and search for any legal disputes. You absolutely must talk to several lenders before choosing a lender. It will give you the peace of mind that you've found the best deal from the best business.
Understand your credit terms. When you do find a lender, take the time to comb through your loan agreement. Know what your interest rate is, what you'll end up paying back in the end, and when your loan needs to be repaid in full. As well, since these types of lenders are willing to work with people with bad credit, you may be surprised to find out that you don't always need to put up any sort of collateral or even a downpayment in order to get the financing you need. You may want to have a second person look over your agreement so that you don't end up missing something that may cost you dearly in the end.
Sign on the dotted line. Once you agree to the terms, all you have to do is sign the document and you're one step closer to having your loan. Surprisingly, these companies are usually quick to come up with the money you need, often within 1-2 days. This is very convenient when you're desperate for the cash.
Finding a loan can be time consuming, but doing your research will place you in the best situation possible.