Which Type Of Bad Credit Lenders Can Be Trusted?
November 11, 2021 | Louis Tully
If you have bad credit, it can be difficult to find a lender, let alone a trustworthy one. Many bad credit lenders exploit the fact that individuals with bad credit have fewer loan options to make more money. That is not to say that all bad credit lenders are bad.
On the contrary, there are bad credit lender types that are trustworthy and can still help you out if you are in an emergency. If you know which types of bad credit lenders can be trusted, you’ll be better off getting the cash you need, regardless of your credit score.
Loan Types Bad Credit Lenders Offer
Before diving into which bad credit lenders are trustworthy, you need to know what options are available to begin with. Most bad lenders provide 2 loan types: secured loans and unsecured loans. Both secured and unsecured loans are types of lending, with secured loans being easier to qualify for.
Secured loans are loans where something is used as collateral for the loan. Car title loans online are the most popular type of secured loans. Although title loans aren’t the only type of secured loans, they are the most common for individuals with bad credit.
Unsecured loans do not require collateral, and because of that, they are more common for individuals with bad credit. Payday loans are the most common type of unsecured loans for bad credit lenders.
Which Bad Credit Lenders Can't Be Trusted?
Both secured and unsecured loans are trustworthy when in the hands of a reliable lender. But how can you identify if a lender can be trusted? Obviously, untrustworthy lenders will not outright say that they are untrustworthy, but there are some signs to be on the lookout for.
Signs That You Might Be Dealing With An Untrustworthy Lender
1. Lender Has Mostly Bad Reviews On Google
Make sure to read any reviews. Reviews will let you know if other customers have had issues with that lender before. If there are a lot of reviews about individuals not realizing what was expected of them before signing the loan, look for another bad credit loan lender.
2. The Lender Hides Information
The biggest sign that a lender is untrustworthy is that they do not outright advertise their terms, rates, fees, etc. If a lender were trustworthy, they wouldn’t have a reason to hide any of this information. Representatives should be willing to answer questions directly, and the website should have plenty of information.
If the bad credit lender you are looking at does not outright tell you what you need to know about their loans, find a different lender instead. Lenders with pages dedicated to their terms and conditions, as well as helpful representatives, are most likely to be helpful and trustworthy.
3. Lender Poses Fees Or Charges For Low (Or No) Credit Scores
Some lenders may take advantage of bad credit holders by charging them extra fees just because of their credit history. If you run into a lender like this, you’re most likely dealing with a scammer, and it’s better to look for a better option in other places.
4. Lender Seems To Be Lying To You (Or Asking You To Lie)
If the lender doesn’t provide you with the proper loan disclosures or gives misleading information, the chances they are scammers hiding something important. Make sure to review a full loan disclosure, rates, fees, and other costs before signing any paperwork. It is required by law that lenders provide this information, and if your lender is reluctant to share it, it might be a red flag that you’re dealing with an unreliable company.
Advantages Of Idaho Title Loans, Inc.
Idaho Title Loans, Inc. has been in business for more than 20 years and committed to providing you with competitive offers even if your credit is bad. We have a team of professionals ready to support you and answer all your questions either via phone or by live chat. Besides, you’ll be dealing with live people, not bots.
We rigidly adhere to federal and state regulations requiring disclosures about interest rates, rollover limits, fees, terms, and charges. In addition, any information you share with us, stays with us – we don’t report to any credit bureaus, and you don’t have to worry about your credit being affected.
Get A Title Loan Today!
Idaho Title Loans, Inc. is one of the safest and most trustworthy bad credit lenders of title loans in the state. Begin the process of getting a title loan today by filling out our online inquiry form. In as little as 30 minutes, you can get the cash you need today! What are you waiting for?