The term loan shark sounds scary for good reason. The best advice anyone can give you regarding dealing with predatory lenders is to avoid them at all costs–and instead, follow the tips on this website to find bad credit lenders who are licensed, regulated, and offer manageable interest rates and fees. A loan shark is a sole person, a corporate entity, or a combination of the two. They prey on the financially weak, and offer loans with astronomical interest rates to individuals or businesses, which usually results in the entrapment of this person in a vicious debt cycle. Also called usury, this type of lending is unregulated, illegal and should be reported immediately. Payday lenders, on the other hand, are regulated (to a certain degree) and there are only a handful of lenders worth wasting one’s time on. A person experiencing financial hardship should only consider a payday loan as a last option.