Despite the fact that “doing business” with a loan shark is risky, many people feel that they have no other option.

If you’re in need of money in a hurry, it’s easy to believe that a loan shark is the right answer. And while this may be true in terms of the timeline, there are entirely too many risks to get involved.

Here are some of the top reasons why borrowers turn to a loan shark:

1. They’re in a hurry. As noted above, people who want money fast often turn to a loan shark as opposed to considering other ideas. Even though the money may come faster, you won’t be happy with the arrangement over the long run.
2. They were denied a loan by a traditional lender. If this happens, here’s the one thing you need to remember: there are more banks out there. Just because the first lender turns you down doesn’t mean this will hold true across the board.
3. They aren’t aware of other options. Let’s assume a bank has turned you down multiple times. Rather than immediately turn your attention to a loan shark, it’s better to look into other options. Why not ask a family member for a loan? Why not apply for a credit card? These ideas are better than getting into a relationship with a loan shark.

All in all, there are many reasons why people think they have to turn to a loan shark. If you find yourself thinking about this, take a step back and look at your other options before you do anything else.

Once you find a more reputable lender, you’ll feel better about what the future will bring.

I’ll never be approved for a traditional bank loan. It takes too much time to complete an application. Nobody will give me money with my credit.

Do any or all of those statements sound familiar? If so, you may have uttered them to yourself over and over again in the past.

Unfortunately, when people begin to think this way they often end up turning their attention to a loan shark. They begin to believe that this is there only option for borrowing money.

As tempting as this may appear on the surface, it will put you in a worse position in the long run.

Here are three reasons why there’s no time for a loan shark in your life:

1. A Big Risk

Sure, you may be able to receive the money you require, but you are taking a big personal and financial risk along the way.

Doing business with a loan shark can be extremely dangerous, especially if you are unable to repay the money on time.

2. High Cost of Borrowing

There’s no denying the fact that you pay interest on a loan you take from a traditional lender. However, when compared to the interest charged by a loan shark, you’ll soon realize just how fair this is.

When you take money from a loan shark you will find that the cost of borrowing is staggering.

3. No Regulations in Place

Borrowing from a reputable lender gives you peace of mind. You know that there are regulations in place to keep both parties safe and secure.

Can the same be said for a loan shark? Absolutely not. They play by their own rules, which never benefit you and your money.

Conclusion

These are just a few of the many reasons why you shouldn’t make time for a loan shark in your life.

Can you think of any others to add to the list?

There are many ways to get your hands on money, with some being better opportunities than others.

As you compare banks and loan sharks, you’ll soon find that banks win out. And here is why:

1. Reliability and reputation. When you do business with a loan shark, you never know what you are getting into. They don’t have to adhere to any regulations or laws, meaning that the relationship can be completely one-sided.

With a bank, however, you know you are getting involved with a reliable and reputable institution that has your best interests in mind.

2. Reasonable interest rate. While you may not be happy with the interest rate offered by a bank, it’s safe to assume that it’s much better than what you would get with a loan shark.

Subsequently, the actual cost of your loan is less when you turn to a bank.

3. No shady tactics. Believe it or not, a relationship with a loan shark often goes beyond a financial arrangement. If you don’t pay the money on time, for instance, you could begin to receive threatening phone calls. Is that something you want to deal with? This is not a risk you should take, as it puts you in an awkward and often dangerous personal position.

Don’t hesitate to learn more about the benefits of borrowing from a bank. Once you do this you will have a better idea of why it makes sense to avoid a loan shark at all costs.

What do you think about this? Do you have any other reasons why a bank is a better choice than a loan shark?

Is your business in search of funding? Do you require money for personal reasons? If so, you know that there are many legitimate options out there. You also know that some of these may not work for you at the present time.

At some point, you may begin to wonder if a loan shark is your only option. These “lenders” make it easy on people to borrow money, which is why so many continue to think this scenario is right for them.

Here are some of the most common reasons to believe that you need a loan shark:

1. You are in a hurry. Although you may be in a rush to secure funding, it doesn’t mean you have to opt for a loan shark who doesn’t have your best interests in mind. You can work fast by considering a variety of other options, such as a loan from a family member or friend.
2. You have been denied by a bank. Let’s face it: there are times when banks just don’t want to do business with borrowers. If you find yourself in this position, it’s not time to jump the gun and find a loan shark. Instead, you should continue to search for a lender that is willing to give you a loan. Broaden your search and you may be surprised at what you find.
3. Nobody else understands you. This is the oldest trick in the book. Loan sharks want you to believe they are the best choice. They want you to believe they understand everything about your situation. And once you agree to borrow from them, everything changes. At that point, you’ll finding yourself drowning in a high interest rate among other issues.

Although you may think there are good reasons to do business with a loan shark, this is never true. Do yourself a favor and only consider legitimate options. This will give you peace of mind, regardless of why you are borrowing money.