3 Warning Signs of a Bad Loan

Just like anything in Life that is too good to be true, and which should be viewed with suspicion, the same goes for loans as well.

Almost always, you will certainly come across a lender that might offer you a loan that is not in your best interests and there are certain signs that will tell you whether going for the loan is a good idea or not.

So here are 3 signs of a bad loan:

#1: Requires the falsification of information on the application

Don’t assume that providing incorrect information are just little ‘white lies’. When it comes to borrowing money, falsifying information on your application can result in being fined or being jailed. Worse still, you might be compelled to pay the entire loan or find yourself homeless in no time.

#2: Put pressure on you to borrow more than you need

Lenders, in more cases than not, are concerned about the commission and which is why they might pressure you to borrow more than you need. Also, the more you borrow, the more you’ll have to pay back in interest. So it bodes well that you only borrow what you need and nothing more.

#3: Doesn’t keep you informed of the required loan disclosures

Some lenders either won’t furnish the required loan disclosures or will tell you that it’s not important to read them. Actually, it is mandatory for lenders to tell you what the annual percentage rate of the loan is while also having to provide an itemized list of closing costs within three from the date of applying.