How To Spot A Bad Credit Loan

There comes a time in every person's life when he or she will need to take out an

emergency loan - perhaps the need arises from unexpected medical bills or the loss of employment. Whatever the case may be, emergency loans can help you to meet these unexpected needs and - if handled properly - can even help boost your credit score. However, when it comes to emergency credit loans, it's important to realize that not all lenders are going to offer you fair terms; in fact, many "lenders" are no better than scam artists who are determined to take your money from you as quickly as possible.

So how can you spot a bad credit loan lender before it's too late? Here are the best tips to keep your money - and your credit rating - safe and sound:

Don't Give In To Upfront Fees. The first sign that a lender is just after your money is that they'll ask to you pay an upfront fee in order to "process your application". It's stands to reason that as soon as you fork over your hard-earned money, that lender will disappear off of the face of the planet - and you can kiss your deposit good-bye. A genuine lender will provide you with quotes only after examining your credit score, and will never ask for an upfront fee to process your application; this fee is included in the overall loan. As soon as you hear about an upfront fee from a lender, run for the hills!

Beware Hidden Fees. Unscrupulous lenders love to slam their customers with hidden fees and charges, since this is the fastest way to make loads of money. Make sure that when you're taking out a loan to ask the lender for all terms and conditions up front, so you understand the overall price of taking out the loan. Interest rates are another fee that bad credit lenders love to raise, with some even charging up to 30%! Genuine lenders will usually charge you interest in the range of 10%-20%, depending upon your credit score.

Trust Your Gut. Never underestimate the power of instinct, especially when it comes to an emergency bad credit loan. If a lender gives you an uneasy feeling, it's best to trust your gut and take your business elsewhere. Even something as simple as the appearance of the office should tip you off as to the quality of the lender - if he's operating out of a dingy one-room apartment, don't even think about taking a loan out. Your money will disappear faster than the scam artist!

Just because you have bad credit doesn't mean that you should allow yourself to be at the mercy of scam-artist lenders and ridiculous lending fees. Stay alert when taking out a bad credit loan, and make sure you understand all of the terms and conditions before signing the contract - it's the best way to make sure that your money and credit score are protected from even more damage!

by: Phil Waterton

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