Money sharks are companies and individuals that mostly offer loans for people with bad credit history because it’s hard for them to access credit services from reputable financial institutions such as banks. People seek loans so that they can pay for different obligations however most of these loan seekers do not put into consideration how they are going to pay back the loans therefore they end up having bad credit records.
Money lenders that offer loans to people with bad credit records are exposed to higher risks than those that only offer secured loans, these money lenders charger higher interest rates to cushion themselves from losses. There are many people that apply for loans that are intended for people with bad records however these loan seekers have no choice but to pay high interest rates.
Financial institutions such as banks and mutual companies do not usually offer loan for people with bad credit records because they do not want to subject themselves to unnecessary risks and they want to protect the investors’ interest. There are many loan sharks that offer loans for people bad credit records however most of these loan sharks use unethical business practices and they charge high interests for their loans. A person needs to accompany a loan application with their identity book, proof of residence as well as a pay slip for their application to be processed.