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Low credit score? It makes getting a loan or credit card nearly impossible. No matter how hard you work and how much you need the cash or the credit, you can’t seem to get around that score. Where can you turn when you need credit but can’t get it? Wherever you look for credit, beware of scams!

The Credit Process

You’ve probably seen ads on TV for free debt relief, debt reduction, and get-out-of-debt-now services. They claim that you can be debt-free in one year or less, or that you can reduce your debt by 50% with one phone call. They make claims that seem too good to be true – and they are.

You’re probably familiar with how a car loan works. You get cash from the bank and the bank gets a security interest in your car. There are plenty of other types of purchase money loans, but cars are the most common. You take ownership of the car and pay the loan back over time, with interest.

The National Consumer Law Center (NCLC) recently published a study evaluating state law protections for debtors and their families. It found that not a single state provided adequate protections to allow debtors to continue to work and provide for their families.

A payday loan is a short-term loan that you borrow against your next paycheck. The lenders charge sky-high interest rates and structure the loans to make repayment difficult. It’s a predatory lending practice that takes advantage of people when they’re running out of options.