3 Instant Approval Personal Loan Warning Signs

Instant approval personal loans can be a tempting beginning to a dangerous cycle. The vast majority of borrowers who take out advance loans must take out loans to pay off their original loans, and cannot get out of the cycle of debt that begins. If you are considering an instant approval loan, that should serve as a warning. If you have any other routes of relieving your financial woes, you should try those before turning to instant approval advance loans. However, if you have decided on such a loan, then keep these three warning signs in mind:

Warning Sign #1

If you are approached by a lender, then it is likely that you have been targeted by predatory lending. Do not accept deals from any private lender who comes to you offering financial relief through a loan. If you need a loan, contact a personal loan lender only after exhausting other resources such as prime lenders (banks and credit unions), bill payment extensions, and loans from family and friends.

Warning Sign #2

If the lender makes you feel pressured, remove yourself from the situation and find a lender elsewhere. You should not be forced to make an important financial decision such as taking out an advance loan. The lender should answer your questions in a straightforward manner that educates rather than pressures you. That said, do not be fooled by lenders who take on friendly appearances to entice you to take out a loan. Instant approval lenders are not in a business that helps people get out of debt; rather, they are in a minimally restricted field that is known for its high profitability at the expense of people in desperate need of financial resources. Therefore, it is important for you to know your rights and understand the terms of your loan before ever signing any documents regarding it.

Warning Sign #3

If the loan's terms are not negotiable, then look elsewhere. Instant approval loan terms are amongst the most negotiable of all loan terms, but many borrowers are unaware of their ability to negotiate. If a lender is unwilling to negotiate terms, saying that your credit score is too low or that you are for any other reason a high-risk borrower, then you should take your business elsewhere. The extremely high profitability of the bad credit lending business is the only argument one needs to show that the high interest rates charged by these lenders are unwarranted. You can and should negotiate a lower rate, so do not accept offers that cannot be negotiated.

 


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