What is a "predatory lender"?

What is a "predatory lender"?

Mitchell Freedman, CPA/PFS (CEO, MFAC Financial Advisors) gives expert video advice on: How can I get a lower interest rate or APR on my current card?; What if I pay my credit card bill late?; What if my credit card is lost or stolen? and more...

Predatory lenders can even take the form of credit card issuer. They typically offer very low come-one rates because they know that individuals who are carrying balances are going to be enticed to transfer their balances to these lower balance credit cards. The credit card holder has to understand that many times there's a charge for transferring the balance. I have seen charges of as much as four percent of the amount being transferred, so if somebody is going to transfer a $1,000 balance from one credit card to the next, there could be a forty dollar charge just to transfer the balance. If you don't handle your credit responsibly, and pay late even once, then these predatory lenders can jack up your interest rate to not only the same amount as you might have been paying on your old credit card, but substantially more.