Easy Credit - Is it a Trap you can't Afford?

Many times, especially when we feel we are in a financial bind, we look into those ads that promise easy credit. If you are one of those people, you wouldn't be looking into something like that unless you had a less than stellar credit score. People who have low credit scores or something like a bankruptcy on their credit records often fall prey to individuals or companies that only want to take more of their money. Easy credit is rarely ever what the name implies. Getting credit is only easy for people who have good credit scores, and reputable loan companies don't advertise that they give easy loans.

What happens when you apply for what is advertised as easy credit? One of the biggest scams is where the company doing the advertising promises a quick loan to anyone, regardless of poor credit or even unemployment. They ask you for a loan processing fee, and this is always done through the mail or through the Internet with a credit card. You never meet anyone in person, and they won't have an actual building that they work from. If you send the processing fee, you simply don't hear from them again. You can try to call them to see how things are progressing, but either you will never reach them or you will keep getting told that they are still working on it. Eventually you realize that your easy credit was just an easy scam.

Other places that advertise easy credit are car title loan establishments, or payday loan establishments. These places actually are legitimate, although they don't like to disclose how much this type of loan can really cost you. With the car title loans, you simply hand over the title to your car for a loan that is for less than what the car is worth, and if you don't keep up with your payments, they simply take your car from you. Their interest rates are extremely high.

With the payday loans, you prove that you have been employed at the same place for at least six months, show them your last couple of pay stubs, and they give you a loan for a short amount of time. Usually you give them permission to take the repayment directly from your checking account, and there will probably be only one or two payments. This is easy credit, but the fees can be steep. You are going to pay a lot more back than you borrowed, even though you only borrowed it for a short amount of time. If it's enough of an emergency, this kind of loan can come in handy, but otherwise you want to avoid it.

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Title:	Easy Credit - Is it a Trap you can't Afford?
Author:	Joy Stoyle
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Easy Credit - Is it a Trap you can't Afford?