Think You Need a Loan Shark? Read Carefully…

Looking for loan sharks online?

Tired of lenders and banks disapproving you over and over again? It may feel like a nightmare… one that you can’t wake up from. Meanwhile, your debts and bills keep piling up…

And because of this…

You might feel like your only option is turning to loan sharks. Well, we have some good news. You don’t need a loan shark.

And here’s why…

At GoLoans, we’ve put together a guide to help borrowers, just like you, get financing.

READ MORE: 5 Common Misconceptions About Car Title Loans

Keep reading, because…in this guide, you’ll learn:

Let’s start by talking about loan alternatives…

Here’s Why You (Don’t) Need Loan Sharks

Loan sharks online prey on good people, just like you, in their most desperate of times.

They make loans seem attractive, yet their goal is to rob you blind.

With interest rates soaring up to 7,000% APR, they can trap you in a never ending cycle of debt.

Only a very small portion of repayments go toward the principle.

You’ll end up paying nothing but interest for years…and years to come.

These moneylenders will threaten you…not with debt collectors, but with physical violence. Loan sharks online are considered a usurer.

There are far better options available. You only need to look in the right places.

Here’s what you need to do if you (think) you need a loan shark.

How to Find a Bad Credit Loan (Not Loan Sharks)

Has a financial emergency sprung up, leaving you stressed out..with nowhere to turn?

If so, there’s no question you need a bad credit loan.

But how do you find a guaranteed loan…without turning to an illegal and shady usurer?

Here are a few options to explore:

Forget a Loan Shark: Apply at a Local Credit Union

If you haven’t tried applying at your local credit union, start here first.

While credit unions are banks, they often work with borrowers that have bad credit.

Credit union moneylenders are local and established (and definitely not a loan shark). Which means you have a greater chance of approval…and avoiding loan usury scams.

To increase your chances of approval, do not apply online. Go to the moneylender’s physical location and speak to a loan representative.

Be honest and inform them of your situation.

This works best if you need a loan less than $1,000. And, you have verifiable employment and income.

A loan from a credit union shouldn’t cost more than 5% – 36% APR.

Pay this back as soon as you are in a better financial position. The quicker, the better.

Apply for a Secured Credit Card (Instead of a Loan Shark)

Most credit card issuers will deny you for bad credit.

But the good news is there’s an option called a “secured credit card”.

This credit card is for borrowers with bad credit.

And most people can get approved without any hassle. The best part is you don’t have to deal with an online loan shark.

Here’s how it works:

Compare credit cards for bad credit here

Apply for a card

Once approved, make a small deposit on your new card. In most cases it’s $200 or less

The secured credit card issuer will add a credit line up to $500

The secured credit card issuer will add a credit line up to $500 Enjoy your new credit card

This is only an option if you need $500 or less. There are three major benefits to this:

You get access to funds needed to pay bills, debts, etc

You don’t have to deal with a loan shark

And…you can rebuild your credit

READ MORE: Debt Consolidation Tips for Borrowers With Bad Credit

P.S. Loan sharks will not help you rebuild credit.

Compare Installment Loans vs. a Loan Shark for Bad Credit

A bad credit installment loan can also help you get out of a financial pickle. It does have higher than average interest rates, but if you compare lenders you can find a middle ground.

An installment loan lets you pay the loan back over a period of time. Compare this to a payday loan, which has to be repaid on your next paycheck cycle. Better yet, compare it to a loan from a shark!

Compare Tribal Loan Offers vs. Loan Shark Interest Rates

Tribal loans also have very high interest rates. What is a tribal loan you ask? It’s an installment loan, backed by tribal nations located on Indian reservations.

These Indian reservations have their own jurisdiction, outside of state and federal regulations.

You should know this isn’t always the best option. There are many unethical tribal lenders that charge excessive interest rates. Very similar to loan sharks.

Your best course of action is to compare native american loans.

Tip: Big Picture Loans is a reputable lender in this space with reasonable interest rates. And they have great reviews.

While bad credit installment loans have a high interest rate, it’s still much safer than a loan shark that is an illegal lender

Car Title Loans vs. a Loan From a Shark

We rarely suggest auto title loans, unless you are confident you have the funds to repay the loan. And if you are confident you can, you should repay the loan as soon as you can to avoid rollovers. This is still considered to be safer than a loan shark loan.

Rollovers are when you can’t repay the loan back within the time stated according to the terms. Most lenders give you 30 days to repay the loan. In fact, in most states, that’s the law.

But, if you have problems paying the loan back within 30 days, lenders can legally roll the loan over to the next month.

And, they can continue doing this for many months. Luckily, many states have a maximum term on rollovers.

READ MORE: Use This Handy Calculator to Know How Much a Car Title Loan Really Cost

While car title loans are legal in certain states, it’s not the best option in our opinion. Many title lenders operate as “legal” loan sharks.

Borrow From Family or Friends

Perhaps you’ve already tried this. But if not, give it a chance. Even if you think there’s no way they’ll lend you money.

It’s way better than putting your finances (and life) in danger by using loan sharks.

Sell Unwanted Goods on Amazon or eBay

Chances are, you have stuff you no longer use…stuff that is sitting around collecting dust.

Even if you think it has no value, the truth is…someone out there will see the value in it.

There’s a saying that goes like this: “One man’s junk is another’s treasure“.

You now know the alternatives to loan sharks.

But to convince you further, there’s a lot more you need to know.

I’m Still Not Sold: Where Can I Find a Loan Shark Near Me?

If you still feel a loan shark is the best decision, here are the most popular cities in the U.S. to find online loan sharks. Keep in mind moneylenders that fall under this category are illegal usurers.

Houston, TX

Brooklyn, New York

Atlanta, GA

Austin, TX

Birmingham, AL

Boston, MA

Chicago, IL

Charlotte, NC

Why People Fall Into the Loan Shark Trap

Loan sharks are not there to help you…

They want your money and will stop at nothing to get it.

Predatory lending is a multi-billion dollar business. And loan sharks know this.

They may seem friendly and helpful at first, but give it time. Their true colors will soon reveal themselves.

When a victim borrows money from a loan shark, here’s what can happen:

Most, if not all, of your payments will be in interest (not principal)

You’ll pay astronomical interest rates that could climb as high as 7,000% APR

Illegal loan sharks are not regulated. There are no contracts or documents. They may force you to continue paying even after you have settled your debt

If you can’t repay the loan on time, loan sharks won’t use traditional debt collectors…they will use force

Why Borrowers Turn to Loan Sharks

Borrowers turn to loan sharks for several reasons:

Can’t pay the mortgage or rent

To get a medical loan

To get a dental loan

To help pay debts off

Funeral expenses (death in the family)

To pay utility bills like water, electricity, etc

To buy groceries and put food on the table

Repair an issue with a vehicle

Maxed out credit cards

Pay for college/university expenses

Pay for a vacation

Get high risk business loans

The above list is only a small fraction of reasons.

But now that you know alternatives to your lending situation, you should know how to spot a loan shark.

How to Spot a Loan Shark

To avoid one, you have to know how to spot one.

They are easy to spot once you know the signs.

Here are signs that a loan company may be a loan shark:

They guarantee a loan without checking your credit history



They aren’t a registered business



You aren’t given loan documents to review before agreeing to the terms



They hide the interest rates from you



You find several negative reviews of the person or company online



The lender does not have an A or B rating with the Better Business Bureau



The loan company charges more interest rates than allowed as defined by your state laws



They harass you and try to force you to give in to their terms

A real lender will not have any of these signs.

Solutions to Get Out of Debt

If you are trying to get out of debt, we have guides that can help you do just that.

For starters, you can check out our guide on getting out of debt.

For even more resources and tips, be sure to check out these guides too:

How to Report a Loan Shark

Take these steps to report them to the authorities immediately.

Speak to local law enforcement to get help

Report them to the Consumer Credit Protection Bureau. You can file a complaint here.

Report the lender to the FBI here

If you’re already a victim, but afraid of reporting them, follow these steps.

Pay as agreed for now to avoid any harm to you or your family



Review our guide to alternative loans above to get a bad credit loan



Once you find a legal loan, pay the debt in full.



Find new employment and housing far away in another state if possible

The Bottom Line

If you aren’t a victim yet, avoid them. Review or alternatives above and report them right away. Odds are, they won’t know who reported them, so you should be safe.

If you are a victim, review our steps above to resolve the issue ASAP.

Do you have any helpful tips for people that are considering a loan shark?

Let us know in the comments.

Or you can leave a comment if you need further help with a bad credit loan.

Frequently Asked Questions