Pay Money to Get a Loan

Should a person pay money to be assured a loan approval?
Readers Question
Denise asks:
My mother has very bad credit and is looking for a personal loan. She has spoken
with three companies that have offered to help her. They each advised her that
she would have to pay to insure the loan. She is attempting to borrow $15,000
and the three companies are asking for around $1,300 dollars to insure the
loan. I have heard of companies requesting insurance on a morgage loan, however
I have never heard of making such a payment up front for a personal loan. The
three companies that she is speaking with are:
American Investments, First National Credit Corporation, Mitchell Brokers, EZ Loan Institution

Has anyone ever heard of these companies? Are they legit? Has anyone ever paid
insurance for a loan up front, and if so are the amounts being asked for
reasonable?

Answer:

The Quick answer – Don’t DO IT!
Readers Answer
Best Answer by Studly:
You gotta pay 8.5% up front to get a loan? And probably a high interest rate on top of that! Are you crazy to even be thinging of doing that?

There has to be someone who will loan you money for less than that. Keep looking!