Guide Loans Tips

Tips To Avoid Unlicensed Loan Sharks

Written by Robert

There are many types of global institutions out there ranging from your traditional bank loans such as mortgages, auto loans, boat loans, personal loans, payday loans, auto title loans, and loans that require you to get out of it emergency financial situation such as paying your rent or or paying your car payment which is overdue, and in fact a lot of people require these types of loans which we will call emergency financial loans, and when they do, they often look for alternative financing options because they can not qualify for traditional bank financing such as unsecured personal loans.

When someone cannot afford or qualify for traditional bank financing in their regular banking institution, they get the idea of looking for a loan shark because they have heard the term before and they believe that this type of individual or corporation will be able to get them out of the situation that they are in. However one of us to be extremely careful and tread lightly here because there are different types of loan sharks out there that you need to know which ones you deal with before you begin making a deal with them.

Loan sharks online have been around for a very long time and to be honest, they have been around most likely from the beginning of time ever since people have had a need to borrow money to get things that they need. The only difference is that there are two types of loan sharks which are in good and evil types. The one type of shark that you never want to borrow money from or even contact for that matter is an illegal loan shark that loans money to individuals or families that have the intention of creating unreasonable interest rates and in the event that the borrower does not pay back, these loan sharks will come after you, your family, or friends and possibly cause harm to you or someone in your family in order to get you to pay the loan back. These type of individuals do not play when it comes around to messing with their money, that’s why it’s ever so important that use. Clear from these types of companies and individuals that you become situated in a financial emergency and in a cash capital very quickly.

So what is a person to do if they can get regular financing to receive a personal loan which is unsecured from their traditional bank? Well, the answer today question is you must first steer clear of illegal loan sharks, and then you must find a legitimate lending institution which will loan you the money that you require without causing harm to you or someone you know, in the event that you cannot pay the loan back. These types of lending institutions are legal loan sharks online. They will often loan you the money that she require however most of these lending institutions will not loan money above $2500 because the risk is so great that they may not recoup their investment. The other thing that you have to watch out for when dealing with these lenders, is the interest rate which they charge. While it is completely legal to charge interest rates, a lot of these companies although they are legal, will charge astronomical interest rates or APR because the risk associated with lending out this kind of money to someone in your shoes is so great mostly because sometimes they never get the money back which they loan.

So now that you know the two main types of loan sharks out there on the Internet, how does one ensure that they stay away from the loan shark’s that can do them harm or in other words lenders which are operating illegally? Well, the answer to that question is that if anyone or any lender ask you to send them money and first such as for application fees or any type of fees for that matter, then you should automatically turn and run a way because it is most likely a scam. Any legitimate lender will not ask you to pay any type of application fees or any fees at all so the moment that someone ask you to pay these days you should automatically know that it is a scam.

Also if the lending institution is located outside of the United States or United Kingdom then the chances of that lending institution becoming a scam is greatly increased. Another thing that you can do is you can check with your local government agency to ensure that these groups or individuals are licensed by local laws to lend money because this will ensure that you are dealing with a reputable loan company and that they have no chances of coming after you to cause you harm and event and you cannot pay the loan back.

It is not illegal to borrow from a company or such person, but it is a crime to borrow money for commercial purposes without a consumer credit license.

Shark loans often borrow money along with other legal or illegal businesses. The methods used to borrow and collect money are very different. Get an emergency loan instead.

About the author


Robert loves the sea and dreams of getting a home with a beachfront. He used to be a Data Scientist in a multinational company but left his job to follow his passion for writing.