It’s time to expose one of the sneakiest tricks in the loan business: prepayment penalties.
When people warn you about independent lenders, this is sort of thing they are trying to protect you from.
It’s just common sense that when you borrow money, you have to repay it. That is how the system works! But some underhanded lenders want to penalize you for paying too much on your loan! They want to charge you extra money for paying off the loan early.
You are not rewarded for being a good borrower, you are punished.
Prepayment Penalties Are a Scam
Prepayment penalties are a dirty little secret in online loans. They are always hidden away, buried so deeply in the fine print that most people never see them. Which is part of the sneaky plan.
When you are looking for a loan, you need to make sure to find one who promises up front there are no penalties for prepayment or extra payments. The bad lenders won’t advertise their tricks, but the good lenders will assure you up front that you are in good hands.
A good lender wants you to pay back the loan ASAP. It’s not only good for the lender, but it saves you, the borrower, money in extra interest. Paying that loan back quickly shows the world you are efficient, you are good with money, and that you are trustworthy client.
The mere fact that a business would punish someone for prepayment is nothing short of flabbergasting.
Avoid those debt traps. Choose a verified business, that treats people the right way, and delivers on everything it promises.
Here at NSL we accept early payments, we accept prepayment, we accept extra payments! We never penalize our customers for paying off their loan early. In fact, we encourage it. Paying off your loan faster means less interest that you have to pay.
Accept no substitutes! Don’t get hoodwinked! Make sure you are dealing with a legitimate business that doesn’t try and slip prepayment penalties past you.