A loan shark is a person or company that borrows money at extremely high-interest rates. The term “loan shark” is most often applied to an individual who charges borrowers exorbitant interest rates and uses violence as a threat to obtain repayment of the debt.
A loan shark will lend money to people when banks and other institutions refuse credit for many reasons, such as bankruptcy, poor credit history, or low income/employment status.
While criminal elements may have existed in some areas since the introduction of the currency itself (for instance: Carthage circa 350 BC), modern English speakers’ use of the term originates concerning early 17th-century criminal practices in Great Britain around 1630 – 1640 AD.
Loan sharks prey on low-income individuals and the poor, making their money from exorbitant interest rates (such as requiring payment of 50% interest per week), and trapping their victims in perpetual debt.
In modern times, loan sharks exist both aboveground and underground. The term “loan sharking” also means profiting from illicit loans lacking proper licenses or vastly overpriced sums. Loan sharks often operate out of tiny storefronts to avoid attention.
Many financial institutions have a policy against loaning money to illegal immigrants since no identification is required for such loans.
However, most loan sharks require borrowers to provide an employer’s name and contact information; this allows them to find the borrower if the loan is repaid when due. If prohibited companies are placed as employers, the illegal immigrant may have his paycheck sent to an illegitimate address and thus never receive it.
A loan shark may also be called a “credit shark” or “vig.” In 2009, online payday loans increased by 20% in the UK due to many people not having access to any form of credit, and some banks have even started lending money without interest rates.
How To Find a Legitimate Loan Shark?
If you need some money and you’re looking for a way to get it quickly, then there are many ways to do so, but how do you know if the person you are talking to is working legitimately? How do you know if they are trying to take advantage of you and make some fast money?
There are ways to tell if a company is legitimate, and one of them is by checking out the Better Business Bureau (BBB).
A loan shark operates in the same manner as a bank. They will make many promises that seem too good to be accurate and offer loans that are either ridiculously low-interest rates or require little to no money upfront.
You can easily spot a loan shark online or through other local resources and direct contacts. So how do you know if they are legit or not? It comes down to how much risk they pose to you. If a company asks you for money that they don’t have, that’s a red flag.
You can find legitimate loan sharks by checking with your local banks or credit unions. Many of these places offer a debt-relief option that is similar to what is being provided by moneylenders.
The best part is that these services don’t cost a fortune, so you don’t have to worry about being left out by your friends and family. If you go to a bank, ask to speak with a loan specialist, who will tell you how to find a legitimate loan specialist.
Loan sharks aren’t always what they seem. Some companies advertise as “non-profit” and only borrow money from broke people.
When you contact them, you usually get an agreement that you sign. They then charge your credit card for the amount of money you borrowed. The only way you can stop looking for a way to find a legitimate loan shark is if you’re willing to pay upfront fees to get approved.
Another way to find a legitimate loan shark is to take advantage of online lending services. These services often work by allowing you to access their loan application process online.
You fill out an application and choose which lender you would like to accept an offer from. This process usually takes a few days to complete. Nevertheless, this is a great way to apply for money fast.
Legitimate lenders often look for clients who have a low income, but this is only sometimes the case. Most legitimate loan companies online will also consider you qualified for a higher interest rate than someone with a low income, even if you have a poor credit rating.
If you are looking for a legitimate loan shark, it will be essential to keep this in mind. These companies tend to charge high-interest rates to people with poor credit ratings, so you need to keep this in mind if you want to get approved for a legal loan company.
The final way to determine whether or not you are dealing with loan sharks or legitimate moneylenders is to research the company. Look for reviews online and read the news about how other people have had good or bad experiences with the company.
Most government benefits require at least some consumer report, so you can use this information to decide if a particular company will allow you to receive any government benefits.
Overall, there are many things that you can do to keep your stress level down while you are looking for a lender.
If you have a lot of debt, try to pay off as much of it as possible before looking for a lender. It may seem scary to look for a lender, but you need to keep calm and use these tips to stay calm.
Keep in mind that legitimate lenders are willing to help you, but you must ensure that you deal with an honest financial advisor before signing up for anything.
Talk to friends, family, or co-workers who may have used a loan shark. They can give you information about who to avoid and use.
Avoid businesses that advertise in phone books or on the Internet. Scammers may use these kinds of ads to attract customers who are desperate for cash.
Don’t give out personal information, such as your phone number or address, on the Internet or over the phone.
If you cannot repay a loan, ask for more time or consider another loan from a reputable lender.
Contact your state Attorney General’s office if you suspect a loan may be a scam.
How To Spot A Legitimate Loan Company?
When you need quick cash, taking out a loan from a company that promises easy approval and fast funding can be tempting. However, many of these companies are loan sharks that will trap you in a cycle of debt. Here are some tips for how to spot a legitimate loan company:
1. Look for reviews online; a legitimate company should have positive reviews from past customers.
2. Check the Better Business Bureau website. The BBB accredits businesses that meet specific standards, so you can be sure that a company with accreditation is legitimate.
3. Make sure the company is licensed in your state. Each state has different requirements for lending companies, so you’ll want to ensure the company you’re considering is licensed to operate in your state.
4. Ask lots of questions about the loan. If you need help understanding something, ask for clarification. It s your money, and you should know what you’re getting into.
5. Don’t be pressured to sign anything immediately. If you’re not comfortable with the loan terms, walk away. There are plenty of other options available to you.
6. Don t sign a document that you don t understand. If you can t read or understand the contract, don t sign it.
7. Be wary of high-interest rates. Interest rates on a payday loan should range from 10 percent to 30 percent.
8. Check your credit report before you apply for a payday loan. If there are any errors, dispute them as soon as possible, so they don t affect your ability to get the loan.
9. Don t get a loan from one payday lender to pay off another. Payday loans are designed for people who are between paychecks and need a small amount of cash for emergencies. Paying off another loan with a new one defeats the purpose of these types of loans.
10. Pay off the loan as soon as you can. Because of the high-interest rates, it s essential to repay your loan when you get paid again.
What are the Pros & Cons of loan sharks?
Turning to a loan shark can be tempting when you’re in a bind and need money fast. But before you do, it’s important to understand the pros and cons of this type of lending.
Pros of loan sharks:
- A payday loan can be approved in minutes without you having to jump through many hoops. If you go through a legitimate lender, you may have to provide a lot of documentation, which can take over a week to get approved.
- Loan sharks are often more willing to lend money to people with bad credit than traditional lenders. They also tend to be more flexible when it comes to repayment terms.
- A loan shark may be more willing than a bank to lend as much money as you need.
- Interest rates on a payday loan can be higher than a traditional loan, but they are still much lower than what you would pay if you borrowed from a moneylender.
- If you have no other options, a payday loan is better than turning to an illegal lender.
- Payday loans are not available for individuals who live in states where payday lending is illegal.
- A payday loan should be a last resort, and you should exhaust all other options before considering this type of loan.
Cons of loan sharks:
- Loan sharks charge extremely high-interest rates, sometimes as much as 1,000 percent.
- If you fall behind on your payments, a loan shark can be ruthless in attempting to collect the money owed.
- A loan shark’s business is illegal, and the borrower may face legal consequences if the loan shark decides to take matters into their own hands.
- Loan sharks are known for using violent tactics to collect payments, and borrowers who fall behind on their loans can risk physical harm.
- Loan sharks often require their borrowers to sign over the titles to their cars, homes, or businesses as collateral against the loans. When a borrower falls behind on their payments, the lender will seize the collateral and sell it to recover some of what is owed.
Loan sharks are often seen as shady and illegitimate, but they can be a quick fix for those who need fast cash. If you’re considering borrowing from one, research the company’s legitimacy before signing any paperwork or giving out personal information.
All legitimate loan companies should offer terms and conditions that outline how much interest rates will change over time, what payments you’ll have to make every month, etc. There are many advantages and disadvantages associated with using this lending service – we recommend weighing these carefully before making a decision! What is your take on them? Should stricter regulations govern who can borrow money through loan sharks? Leave us a comment below!