What Is a Predatory Lender?
Predatory lenders can even take the form of credit card issuer. They typically offer very low come-one rates because they know that individuals who are carrying balances are going to be enticed to transfer their balances to these lower balance credit cards. The credit card holder has to understand that many times there’s a charge for transferring the balance. I have seen charges of as much as four percent of the amount being transferred, so if somebody is going to transfer a $1,000 balance from one credit card to the next, there could be a forty dollar charge just to transfer the balance. If you don’t handle your credit responsibly, and pay late even once, then these predatory lenders can jack up your interest rate to not only the same amount as you might have been paying on your old credit card, but substantially more.
Related Questions
- Submits the loan modification package, including any predatory lending notification, to the lender and negotiates with the lender’s legal department and loss mitigation department. How will a loan modification my credit?
- What are the requirements for a lenders funding program?
- What are the warning signs of a predatory lender?
