What You Need to Know About Legal Money Lending Options 

I Need A Loan Shark – Maybe you said it as a joke, but deep inside, you thought it was true. Having bad credit might make you an easy target for loan sharks. These sharks are people or so-called businesses that illegally lend money with very high interest rates. The lending process is either legal or under the table, but it is considered to be unethical. Reconsider the next time you say, “ I need a loan shark .” If not, you may be getting yourself into more trouble than you bargained for.

Who the Lenders Are 

You have heard about bad credit lenders and borrowers. The borrowers are people who need money to buy cars, homes or appliances; however, they cannot borrow loans because of their bad credit. The bad credit lenders are banks and financial institutions that try to help these individuals. The lenders work under government laws and regulations and help millions of people all over the country. It seems like they are doing a great service to the community by helping people with bad credit. However, many of their customers turn into victims.

Bad credit lenders charge very high interest rates to borrow money from them. Their borrowers have deadlines when they should make their payments. If the payments do not come in, the interest piles on and can easily double the debt already owed.

All financial experts and advisors know to avoid using bad credit lenders. Many suggest other alternatives to high-interest loans,  since illegal loan sharks target people in desperate financial situations. They know that it is easy to get roped into the debt system and never get back out. The lenders disguise themselves as helpful businesspeople when they are really shark predators out hunting for their prey.

I Need A Loan Shark – Where to Find Them and Who to Avoid

There are many legal loan sharks online, but they are not called loan sharks specifically. Many people think that payday lenders are the legal versions of loan sharks or acting in disguise. Before you decide if payday lenders can meet your needs, it helps to know what payday loans are first.

The process is meant to be a fast fix for and short term needs. The typical repayment period lasts for 14 days or until the next payday. Many lenders state that the loans are not long-term solutions to financial problems. That is why many of them do not check your credit or verify your employment. Also, the amount you can borrow is usually limited to $500 or $1,000.

Even though payday lending is widely legal in the U.S., opponents say legality does not mean it’s right. In the U.K, the use of payday lenders has grown significantly since 2006, according to The Guardian. There are no legal restrictions on the fees, so lenders can charge as much as 1,000% APR for a single loan. As long as they state their fees, they charge whatever they want.

The popularity of payday loans in the U.K. or anywhere may signal people are not taking great care of their personal finances. The decline in payday lenders starts with you taking full responsibility for your finances. No one can defeat predatory lenders if people continue to fall behind on their finances and run to these lenders.

Before you tell yourself – I need a loan shark –  talk to a responsible financial representative at a bank or credit union. Get a full list of the alternative options given to you, whether you have good or bad credit. Send in a report if you or someone you know has become victimized.

Car Title Lenders

Finding loan sharks online is hard because there is so much deception. You know that payday lenders spark controversy. Car title lenders are also placed in this category.

Most lenders need a down payment or some kind of collateral to allow you to borrow money. When you become a borrower, your car title works as collateral.

The laws that regulate this type of lending are not the same in all states. Like with all lenders, the terms and conditions vary widely. For the most part, though, you need a clear title and proof of ownership. Typically, the loan process is short term and the interest rates are high.

The lenders do not check your credit, so they are taking a huge risk with you and you are taking a huge risk with them. If you do not repay the loan on time, the loan goes through a “rollover” and you accumulate more debt.


Pawnbrokers are considered legal loan sharks, who use collateral in return for a loan. If you do not repay on time, they will resell your property as compensation. Pawnshops are notorious for buying products cheap and selling them at higher rates. They do this because they need to make money, whether or not you honor the terms of the cash loan.

Many pawn shops operate in poor neighborhoods where the business is high. But you can now find these legal loan sharks online. You may get your personal items returned if you repay the loan on time. Not all brokers are willing to work under the legal requirements, though. Consider if working with a pawnbroker is worth it when you say “ I need a loan shark. ”

Legal and Illegal Practices

Collection agents are similar to bounty hunters. They hunt down people who owe money on their loans. They use legal methods to contact people by phone, email or mail and inform them about debts. If the borrowers do not respond, the agents can take them to court and sue for a judgement.

If you look for loan sharks online, you will not see any mention of verbal or physical threats. They never admit to harassing their debtors, but know that it is a possibility. Unregulated loan sharks already do not follow the laws, so they are more likely to resort to violence.

In today’s world, you need to pay bills like everyone else. Like millions of people, you need to borrow a loan and pay it back later. You have considered using payday lenders, but in reality, you are actually looking for loan sharks online. Think twice before you say “I need a loan shark” because you may not. Learn more about both legal and illegal lenders and make a wise decision for your finances.