Need a Quick Loan? 5 Scams to Watch For
In tight times, many people often need a quick loan to stretch from one payday to the next. Scammers and predators are ready to take advantage of people who are desperate for money.
5 Scams to Avoid When You Need a Quick Loan
- Most scam artists use the Internet, so be cautious. It's easy to make a website that looks legitimate but disappears overnight, with your personal information.
- Never give out your bank account information over the Internet if you don't know where it's headed.
- The typical payday loan, where you write a postdated check to get cash now, has interest rates of over 650%. If you have a credit card (even with 32% APR), use it instead and save money.
- Obtaining a short-term loan in exchange for your car title can also be a dangerous and expensive way to get cash.
- If the lender threatens you, tells you that you must make the decision now or lose the opportunity, or otherwise tries to pressure you, do NOT do business with them.
Tips to Keep in Mind When You Need a Quick Loan
Be sure you read the agreement carefully. Do not sign a contract or agree to any terms that you do not understand. Be creative and explore other options first. A family member, a friend, or even your employer may be willing to help you depending on your circumstances.