Loan sharks have always been around. The book, Merchants of Venice, by William Shakespeare is about sharks that existed in Venice. Today, loan sharks come in various ways and forms. The so-called payday loan providers operate behind the scenes to provide financing to millions of people. Technology has enabled this trend to continue. Tales have been written about online loan providers that charge ridiculous interest rates. In this report, we will look at a number of ways that you can use to stay away from online loan sharks.
Read Online Reviews
Technology has been a great enabler of the loan shark industry. This is simply because of the scale of technology. Today, billions of people use smartphones. At the same time, backend technology like artificial intelligence has enabled development of sophisticated mobile applications. A good thing is that it is possible to write reviews of a company that you have used. Google and Apple allow people to do this. Therefore, you should time to read these reviews. Be careful about companies that have just a handful of reviews. In most cases, companies have been known for hiring online reviewers. Trust a company like Tunaiku that has hundreds of thousands of reviews. This is because no company can pay all those people to leave reviews.
Read Terms and Conditions
All online loan companies have terms and conditions. These are usually long and boring documents that most of us never consider reading. We just tick the acceptance checkbox. This is wrong, especially when money is involved. We recommend that you take time to read these terms. In these terms, the company will explain its policies and the rates it charges. Always use a company that charges reasonable rates.
Create a Relationship
Online loans are about relationships. This is because these loans are based on trust. They are usually unsecured loans, which means that the company will have no major solution if you don’t pay the loan. The much they can do is to blacklist you. Therefore, the best way to get a good interest rate is to create a relationship between you and the lender. You can achieve this by borrowing money and paying it on time. When you do this, the lender will keep on extending money to you at better rates.
Financial Planner
Another way of avoiding these loans is to talk to a financial planner. This is a financial expert who knows how to budget and how to spend money. Unfortunately, most people in the emerging market don’t hire planners. They assume that they know too much or enough. This is wrong. A good financial planner will look at your financial background and recommend a better way to borrow.
Final Thoughts
Loan sharks are brutal. They will lend you $100 and expect you to pay them $200 within a few weeks. This is not right. By using such a shark, you will find yourself in a lose-lose situation. Using these tips will help you use a company that is friendly, and one that charges good rates.