The Shocking Truth About Loans for Single Moms

Ever search the phrase “single mom loans” on google? You’re most likely to see listings promising legit, no hidden fee loans for single mothers. 

Others promise loans for single mothers with bad credit and little income. Does this sound to good to be true? Probably because it is.

Now there are some reputable loan companies out there and I’ll cover them for you. Firstly, we should go over the bad ones and the scams that play on your emotions during a time in need.

Single Mom Loans on the Internet

The Internet is filled with all type of shady people and businesses. Everyone is looking or a quick buck. I want to share warning signs you need to look at while choosing an internet-based loan company.

These signs will also apply to other types of loan companies. 

Single Mom LoansFake Accreditation

1. Accreditation

Many of these internet companies that promise single mom loans have some bogus accreditations at the top of their webpages.

I just seen one while writing this article. If it’s not the Better Business Bureau (BBB)  or one you’re familiar with, then stay away from this company.

Usually you can click on the accreditation logo for more info on that company. If you can’t click it then be suspicious.

2. Email

If a company sends you an email and asks for any private/personal information don’t give it out. Unless you did something to initiate the action, or it’s from a company you know and trust.

3. Payment

If you need to pay money upfront to secure a loan or credit card, don’t do it. Also, if you have to send the money through western union or money-gram, it’s more than likely a scam.

4. Collateral

Never, I mean never use anything to secure a loan. I know of some single mothers that have lost their car over something like this.

Think about it like this; would you sign a piece of paper agreeing to let your cousin have your car if you miss a payment on the $500 they loaned you?

I didn't think so. For people to do this with a complete stranger is beyond me. 

How To Protect Yourself

You can make it harder for yourself for these companies to scam you by doing some simple things.

  • Read the fine print- At least some of it. A 45% interest rate is never a good thing.
  • Verify the Company-The BBB should be your first stop.
  • Google is your friend-google the name of the company and then put review behind it. This will provide things others have said, good or bad.
  • Common Sense-There is no such thing as a guaranteed loan. 
  • Ask Family-Somebody in your family has probably gotten burned before. Learn from them.

Personal Story

The absolute worse situation was going through this ordeal with my mother. The internet loan company she used would continue to take money out of her account, even after she paid them everything.

After doing some research I’ve learned that even the banks can be in on it. They know that it sometimes causes your account to overdraft so they allow it.

However, they tell you they stopped the payments and let it ride a couple of more months.

Just be careful. I know single mothers can have an immediate need for cash flow, but getting a loan can set you back further than before. There are some reputable companies out there and I will now go over the ones I’m familiar with.

Some Fair Loan Companies

Single Mom LoansHow LendingClub Works

1. Prosper- If memory serves me correctly, the guy that started paypal started this company.

Other regular people provide the loans as an investment. The better your credit score, the quicker you obtain the loan and receive lower rates.

2. Lending Club- Works the same as Prosper. Innovation has led this company to be able to provide lower rates and fees than traditional banks. 

This is a cool thing because investors are always looking for a way to earn money outside of the stock market. 

3. LightStream- Great part about this company is you can get a loan for just about anything, provided you have the necessary credentials. 

4. AvantCredit- Caters to the personal loan market. Easy online process that checks what you qualify for. Also, apply will not hurt your FICO credit score. 

Happy Ending

It is my hope that this writing helped you. I definitely hope you came across this before you ended up as a victim.

It's about sharing and caring. So if you've had an bad experience, or know some other solid companies, please let us know about it.

Thanks for reading.