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3 Clear Signs of a Bad Loan

There are good and bad lenders. There will also be times when they will offer loans, rather unscrupulously, to the elderly or those with low income or even those with credit problems.

Unfortunately, if the loan is too good to be true, then it probably is and there are signs that can tell you whether or not you’re about to duped into accepting a bad loan.

That said, here are 3 clear signs of a bad loan:

#1: Wants you to put false information on your application form

Unfortunately, there isn’t such a thing as a little white lie on your application form. Sooner or later, this leads to a fine or jail time. In some cases, you might have to pay the loan back in full. Worst case scenario – you might find yourself on the street.

#2: Insists that you borrow more money than you need

The reason why a lender might want you to borrow more money is only to increase his commission. Unfortunately, you’ll have to shell out more of your money if you do give in to their persistence. Hence, it is advisable that you stick to just as much as you need.

#3: Makes you accept monthly payments than you can afford

When placed in this situation, think about whether or not how much you make can easily accommodate a new or larger mortgage with a little bit of money kept aside for emergencies. Simply put, if you are spending more than you earn, you’ll be in trouble sooner or later.