You are short on cash and your payday is still a week away. You need to borrow money to pay your bills. You are thinking of pawning your car to get the money. If you answered YES to any of these, then you need to beware of predatory lenders. Whether you need a home improvement loan, a mortgage, or fast cash to tide you over until payday, there are unscrupulous lenders out there ready, willing, and able to provide you with money - but at the cost of losing your home, equity, or car.
Some lenders offer sub-prime loans and mortgages to individuals with less than perfect credit.
These loans often come with exorbitant interest rates, high fees and closing costs, and numerous points. In many instances, consumers who obtained these loans could have received a loan with a lower interest rate, lower fees, and costs, if they had only shopped around. There are also lenders who purport to help consumers with their financial troubles, only to place them further in debt. Payday lenders allow consumers to write personal checks for an amount they wish to borrow, plus a fee. Often, borrowers roll-over the loan and pay additional fees.