If you are ready to buy yourself a horse trailer, financing it through a reputable lender can be a smart way to make it affordable.
However, although horse trailer loans can be a game changer, not all lenders play fair. Some of them use underhanded tactics to lock you into deals that cost far more than they should.
That’s why it is so important to apply for horse trailer finance through a reputable and transparent lender like iCREDIT, so that you know exactly what you are in for.
Here are some common tricks that unscrupulous lenders sometimes use so you can protect yourself from them.
Bait-And-Switch Interest Rates
One of the most common dirty tricks in the world of horse trailer loans is advertising a low “from” interest rate that almost no one actually qualifies for. Some lenders will hook you in with rates as low as 3% to 4%, but by the time your application has been processed, you are suddenly looking at something closer to 10% to 15%.
In many cases, these lenders rely on vague wording or fine print that lets them shift the interest rate based on a variety of arbitrary factors, even if you have a decent credit score. In the end, over the life of the loan, these few percentage point differences can add thousands to your total repayment.
Hidden Fees And Penalties
Another classic trick that unscrupulous lenders may try is hiding fees in the loan structure. Some lenders will bury administrative fees, account-keeping charges or sneaky add-ons like insurance inclusions that you never asked for.
Even worse, some will charge hefty penalties if you want to pay off your loan early.
This matters because hidden fees can quickly turn affordable horse trailer loans into budget-breaking ones. If you are doing well and want to clear your debt early, you shouldn’t be punished for it.
Make sure you get a full fee breakdown before signing anything. Always ask specifically about early repayment penalties and read the fine print (twice).
Pushy Sales Tactics
Another underhanded tactic that some lenders use is high-pressure sales tactics to push you into signing fast, before you have had time to fully understand the terms. They might tell you that the rate is only available for a limited time or that there are other buyers waiting in line.
These are classic scare tactics designed to stop you from shopping around or digging into the fine print. When you sign horse trailer loans under pressure, you are more likely to overlook something that could cost you down the line.
Apply for horse trailer loans online with iCREDIT today and experience transparent lending, competitive rates and no nasty surprises.