Pros And Cons
Loan sharks have many advantages and disadvantages. In this section we will be explaining some of the main points.
Advantages of Loan Sharks
Pros of Loan Sharks
Despite the bad name that is associated with borrowing money from a loan shark there are plenty of positives, too.
ADVANTAGES OF LOAN SHARKS
If you don’t have any high value items in your name then you don’t need to worry about not being accepted, loan sharks don’t demand high value goods as collateral.
Similarly, for many kinds of loans there is a need to offer a down payment. For mortgages and car loans you often need at least ten to twenty percent just to secure the loan in the first place – this is not the case with loan sharks
Loan sharks are quick and easy. Securing a loan from more conventional means can take time and demands an appointment for every step of the way. With a loan shark there is no need to wait.
You don’t need to have good credit. It’s difficult to secure a loan from the bank if you suffer from bad credit but a loan shark doesn’t need this at all.
cONS of Loan Sharks
Of course there are reasons that loan sharks have gotten a bad name and you do need to take these disadvantages into consideration when you consider going down this route.
DISADVANTAGES OF LOAN SHARKS
Illegal loan sharks will threat and harass people that have used them in order to get their money back.
Interest is enormous and in some cases they won’t state how much interest will be before lending the money
Most of the loan sharks will charge fees for late payments and it will add up very quickly
As many loan sharks work illegally you might find you have no financial authority to turn to if things go wrong.
Fine print in the loan agreement will favour the lenders. Hidden fees and rates will be charged in most cases. e.g Loan establishement fees etc