Getting a $4000 Dollar Loan With Bad Credit

When you’re trying to get a $4000 dollar loan with bad credit, you’re undoubtedly going to run into a ton of obstacles. The most obvious obstacle you’ll encounter is not being able to secure a loan through typical means — your local bank and other lending offices will probably turn you down flat after you apply. It’s going to be very tempting for you to turn to shady bad credit lenders when this happens because they’ll say yes when everyone else says no. Unfortunately, most of these lenders offering terrible credit personal loans will ultimately land you in more financial trouble than you were ever in to start with.

Recognizing Loan Scams

So, how can you tell when a lender is a fraud? It’s not always easy to spot. Things that should put you on alert are requests for cash upfront to secure your loan. This might be described as a “loan processing fee” and it is something you should never have to pay. The Federal Trade Commission warns consumers against advance fee loan scams, and any lender who tries to make you pay an advance fee to get your money should be reported to the FTC promptly. Once you pay that fee, you probably won’t ever see the money you asked to borrow, nor will you get your fee refunded.

Research Absurdly High Interest Rates

You probably already know that your interest rates will be high if you’re approved for a $4000 loan with bad credit, but how high is too high? The majority of states in the U.S. have limits in place regarding how much interest can legally be charged. Find out the laws in your state on interest and read the fine print before you sign off on any documents to be sure the rate you’ve been charged isn’t illegal. Payday loans are particularly bad for charging illegal interest, and payday loans in Georgia and other states have since been banned as a result of misleading lending practices.