When applying for debt consolidation loans, watch for predatory lenders. A major red flag is any requirement for upfront fees before the loan is funded. Legitimate lenders typically deduct fees from the loan proceeds.
Be wary of “guaranteed approval” regardless of credit history. Always verify a lender’s credentials through the Better Business Bureau (BBB). A strategic borrower compares the Annual Percentage Rate (APR) and checks for prepayment penalties to ensure long-term savings.
“Note: This is not financial advice.”