“Predatory lending is any lending practice that imposes unfair or abusive loan terms on a borrower.” It is also any practice that convinces a borrower to accept unfair terms through deceptive, coercive, exploitative, or unscrupulous actions for a loan that a borrower doesn\u2019t need, doesn\u2019t want, or can\u2019t afford. What you can afford however may not be what a traditional bank thinks you can afford. Choosing to use alternative lenders means taking the time to carefully understand what your loan terms are and what your capacity is to repay them. <\/p>\n\n\n\n
Be careful of what is not in the documents you sign. Have. lawyer review any contract, there are services like LegalZoom, Trust & Will, and Trademarkia that offer online legal services at reasonable rates. <\/p>\n\n\n\n
While prepayment penalties are common, even with traditional banks, be sure you know how much they are and at what point in the loan’s lifecycle they will be waived. <\/p>\n\n\n\n
Predatory loans sometimes have health insurance or other add-ons packed in. If it’s not directly related to what you are getting your loan for, make sure it is removed. <\/p>\n\n\n\n
Speed can be important but being rushed to sign is a red flag. Take the time to read what you sign to be sure you are knowledgable about your loan’s terms, fees, schedule and requirements. <\/p>\n\n\n\n
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Predatory Lending is a focus of much regulation in recent years. So how can you be sure you’re getting what you sign for? <\/p>\n","protected":false},"author":2,"featured_media":879,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20,2],"tags":[],"yoast_head":"\n