You are in the market for a loan. You know you have options, but don’t know what to do next. And then a loan shark approaches you. What they are offering may sound too good to be true – and it is.

If you come in contact with a loan shark, it’s important that you take the right steps towards avoiding a bad situation.

Here are three things to do if a loan shark approaches you:

1. Background work. Do your best to learn more about the lender. This will help you better understand what they are offering, where you fit in, and how to move forward. If you think a lender is a loan shark, you are probably right.
2. Say no thanks. You don’t want to let the lender think you are interested. It doesn’t matter if you are contacted online or via phone, say no thanks and move on to find a lender that has a better reputation.
3. Make a mental note. What was the name of the lender? What did they say to you? What was their contact information? You should make a mental note of all these details, as to avoid doing business with the organization in the future. Furthermore, this may help you save somebody else from a bad situation down the road.

These are just a few of the many things you can do if a loan shark approaches you. Rather than consider their offer, take these steps and move on. It’s the best thing you can do for you and your money.

What other steps would you take if a loan shark approaches you with an offer? Share your thoughts in the comment section.

There is a lot of advice out there in regards to borrowing money from a loan shark. Even so, here is the best thing you will ever hear: don’t do it.

If you avoid doing business with an unlicensed lender, you never have to concern yourself with what could happen.

Could it really be that bad? The short answer is yes. It’s easy to talk yourself into thinking that borrowing from a loan shark can’t be that bad, but you may be surprised at how it turns your financial situation upside down.

If you decide to borrow from a loan shark, it could lead you to one of these situations:

• A loan that has extremely poor terms, such as a high rate of interest.
• Harassment from the “lender” if you fall behind on your payments for any reason.
• Pressure to borrow more money from them as a method of repaying one debt with another loan.

Do you really want to find yourself dealing with one or more of these situations? You may be in a crunch. You may need to secure money in the near future. Even so, it doesn’t mean you should opt to do business with a loan shark. This one bad decision could put you in a difficult financial spot for the foreseeable future.

There are enough licensed and legitimate lenders that you should never think twice about forming a relationship with a loan shark. Forget about this and contact a local lender you can trust. This will put your mind at ease, both now and in the future.

You know how the old saying goes: if it is too good to be true it probably is.

Even though these words of wisdom are dancing around your head, it doesn’t mean you always listen to them. This is particularly true when it comes to financial decisions.

If you believe a loan is too good to be true, there is a very good chance it is. Not only that, but you could find yourself closer than ever to getting into a relationship with a loan shark. Is that a risk you want to take?

Here are three ways to tell if a loan is too good to be true:

1. You are not asked to complete much paperwork. Let’s face it: traditional lenders require that you fill out quite a bit of paperwork, while providing a variety of documentation. If this is not asked of you, something is wrong.
2. The lender is willing to give you as much money as you want. This should be a red flag, as most lenders will not hand over money just because you ask for it. You need to show that you are qualified. This is based largely on your financial standing, collateral, and credit score.
3. You cannot find any information on the lender. A basic online search should help you learn more about a lender, including expert and consumer reviews. If you cannot find any of these, something is wrong. The lender is not legitimate, but may instead be considered a loan shark.

When a loan is too good to be true, it’s best to step back and understand what is going on. You may soon find that a loan shark is targeting you. Moving forward is a mistake on many levels. There are enough legitimate lenders that you don’t have to go down this path.

There is a big difference between the ability to spot a loan shark and actually avoiding this type of “lender.”

Those who are unfamiliar with the pitfalls of loan shark borrowing often find themselves considering this arrangement. Acting on this could be one of the biggest financial mistakes you ever make, either from a personal or business perspective.

Here are some of the many pitfalls associated with loan shark borrowing:

1. High interest rate. Hands down, this is one of the first things you will recognize. Loan sharks don’t care what traditional lenders are doing. They set their rates extremely high, as this puts them in position to make as much money as possible.
2. Lack of organization. Loan sharks make it easy to get a loan. This is why so many people consider this alternative to traditional lending. The problem with this is that these so-called lenders don’t have the organization and structure necessary to lend money in the appropriate manner.
3. Danger, danger, danger. That is exactly what should be going through your head as you contemplate an agreement with a loan shark. It doesn’t matter what type of loan you are seeking, you should only consider a relationship with a reputable lender. Anything else is extremely dangerous, as loan sharks have a bad reputation for using scare tactics (or worse) to get what they want.

Borrowing from a loan shark is typically easier than securing a loan from a traditional bank. Of course, this comes at a cost. The pitfalls above should be more than enough to scare you away from this financial decision.

Can you think of any other reasons to avoid loan shark borrowing at all costs?