Archive | January 2016

Things to Consider Before You Apply for a Personal Loan With Bad Credit

download (75)At some point many people experience financial set backs. When you find you are unable to pay a bill, credit card or loan you end up with bad credit. Your credit report is checked every time you apply for anything, even a mobile phone contract.

Your poor credit history can have a significantly negative effect on your financial future, making it difficult to secure a personal loan and even open a banking account. These days there are lenders that are willing to take a chance and enable you to apply for a personal loan with bad credit. These agencies are taking a great risk, so chances are the interest will be slightly higher than if you had the perfect credit score, but at the same time you are able to get the funding you need without being pushed out the bank and made to feel embarrassed.

The first step before you head online and complete your application for a personal loan with bad credit is to work out what repayments you can afford. It’s all well knowing how much money you need, whether it’s to buy a new car or to make emergency repairs on your home, but it’s a completely different thing to know how much you can afford to repay each month. When choosing any loan, you need to work out the repayment amount and then see how it fits into your monthly budget, ensuring you leave enough money to live on and the ability to make regular payments each month without default.

Determine if you really need the loan. Sometimes you need that added boost of cash for emergencies. You may not have planned it this way, but without having the cash at hand you may be left in serious trouble. Unexpected car repairs, home repairs or even paying for school can be paid for using a personal loan with bad credit. You need to weigh up how important it is for you to get the loan and then proceed with your application.

Have you been turned down for credit in the past? One of the hardest things is walking into your bank and speaking to your bank manager who turns you down flat because of your credit history. It’s embarrassing and can leave you feeling deflated. The majority of people these days will apply for a personal loan with bad credit on the internet. This way if you are turned down it’s not as embarrassing.

Further these companies work with a number of reputable lenders, so you complete one application which is then sent to multiple lenders, increasing the chances of you being awarded the loan you need.

Get a copy of your credit report before you make any applications. Having your credit report can help you identify problem areas you need to work on. Even if you are successful when you apply for a personal loan with bad credit, you will want to clean up your credit report making it easier to secure credit, even a mobile phone contract, in the future.

Ensure you are realistic in your desire to get a loan. Consider the full impact of what it means to borrow money. You will be responsible for making regular payments for up to sixty months, depending on the loan agreement you choose. This means that you need to sit down, work out your budget and ensure that you can accommodate this payment each and every month for months, if not years in the future.

 

This entry was posted on January 27, 2016.

Where to Get a Personal Loan

download (76)Finding a personal loan when you don’t have the best credit report can be frustrating, daunting and plain embarrassing. There is nothing worse than being laughed at by your bank manager when you desperately need cash for those unexpected emergencies.

There are a number of ways to secure the personal loan you need from various sources. The first step is to determine how much you need and how much you can afford to repay each month. Remember that any lender is going to put interest over and above the amount you choose, which means you can expect to pay a higher amount in the end. Knowing what you can realistically afford to repay each month can help you identify the best options and ensure you don’t dig yourself deep into debt on a monthly basis.

The first place you can try and get a personal loan is your everyday bank. Bear in mind that banking institutions are making it harder to borrow cash. This means that you need to tick certain boxes, one of these is to have a stellar credit report. Some banks even require you have some cash in your bank account. While this may not make sense and you probably wouldn’t be requesting a loan if you had funds available, it’s important to be aware of what to expect.

Because of the difficulty associated with securing a personal loan through your bank, most people turn to online sources. There are a wide number of lenders that operate online. Some offer an added service where you complete your application and they submit it to a number of lenders to increase your chances of getting the funds you need.

The advantage to using online lenders is that they are more likely to give you the personal loan you need even with bad credit. Many of them will make an offer and it’s up to you on whether to accept or not. These are a great option if you have already been declined by your regular bank and don’t know where else to turn.

You can consider a home equity if all else fails. Home equity is a secure type of loan where you use your home as security against the loan. This reduces the risk to the lender, but increases the risk to you. If for any reason you are unable to meet your repayments, you could end up losing your home to pay for the amount you borrowed. Home equity is ideal if you want to carry out home renovations and need a higher loan amount.

Some people turn to credit unions. Credit unions offer supply loans, these are privately owned institutions that get their funding from their members. When dealing with credit unions, ensure you do your homework and find a deal that meets your budget and requirements.

One of the things you may want to consider is to approach your family and friends. In some cases a family member may be able to provide you with a personal loan. If you choose this option ensure you write up a contract and pay interest. The easiest way to ruin a friendship or destroy a family is to borrow money, so you may want to look online first and keep this as your final choice.

In the event that you are turned down at every direction you turn in order to get a personal loan, you may want to consider getting someone to co-sign with you. Getting someone to co-sign means that you provide the lender with some form of security. The problem is that should you be unable to pay for any reason, the person who co-signed the loan will be held responsible.

This entry was posted on January 23, 2016.

When Should You Go for a Personal Loan

download (74)The most advantageous factor of a personal loan is that it is very easily available. This is because the lender of a personal loan does not have many compliances to follow. The lender asks no questions and there is no criteria that has to be met by the borrower. However, there is a downside. This is very much unlike the loans taken for education and housing. The downside is that personal loans come with a very high rate of interest. Thus most of the financial experts advise against taking of these loans.

When to go for a personal loan?

There are a few circumstances in which you can easily go for this kind of loan. However these circumstances can also be termed as rare. These are as follows.

– You should not take a loan to purchase any expense that is consumption based. This includes buying a TV or a car. You should also not even think of funding a holiday by taking a personal loan.

– You can opt for this type of loan only during cases of emergency. You must however do this only if you are sure that you will be able to pay back the loan in time.

– In case you are buying a new house and the purchase price of the house is very much higher compared to the home loan, you can bridge this gap by taking a loan. This is an exceptional case and there is nothing much you can do. It can also be a safe investment decision if the value of your home appreciates.

– This loan is a very good choice if it can result in a significant amount of savings or if it is able to help you gain possession of any appreciating asset.

If you are going through a situation in which you are repaying a loan that has an extremely higher interest rate and while the interest rate of your loan is lower, it will be very much better for you to opt for the loan. This is because the latter can be used to settle or close out the higher interest debt.

Thus it must be understood that a personal loan can be a very easy way to go through in the short term, but in the long run it can have a significantly negative impact on your financial status. It is one of the important things to remember.

 

This entry was posted on January 12, 2016 and tagged .

Personal Cash Advance: How to Avail of This Service

download (73)When unexpected emergencies or expenses arise, we may sometimes find it difficult to obtain the cash we need. This is particularly true for people living under a stringent budget every month. Some people are also highly dependent on their salary for survival. So when emergencies strike, they tend to loan money from friends and family members. The problem is – there is no guarantee that someone would lend them the money every time it’s needed. So what can be the next option? You can opt to apply for cash advances.

Personal Cash Advances

This is one form of short-term loan which aims to offer loanable cash to people who are in dire need of it. It can be in the form of a payday loan which makes it payable within a short period of 14 days or up to the next payday. Some cash advance providers may offer longer repayment cycle especially for the non- first timers. The amount of cash you can borrow may vary depending on consumer practices of the state.

Advantages of Using Cash Advance Services

• Money can be obtained within 24-48 hours.

• No need to worry about stringent credit and background checking. As long as you can prove that you are employed or you have a steady income, then you can apply for it.

• Inquiries can be made via the web, on the phone or through e-mail. Most businesses offering this service accept initial inquiries online.

• No need to show or provide any collateral. You just have to ensure that you can pay the loaned amount on time.

• Even those without a bank account can avail. They can have their money through prepaid cards instead.

• For people who remain to be in good payment standing, applying loans for the second or third time would essentially be a breeze.

• Most companies also offer referral bonuses to people who can convince others to apply for a loan. Referral bonuses can be up to $500.

• These services are also linked to other money services. Being a good payor can automatically help you avail of other forms of loans.

Requirements

So, if you have finally made up your mind and plan to apply for cash advance soon, you need to fulfill the following basic requirements to qualify:

• Are you at least 21 years old? Some companies also offer short-term loans to those who are 18 years old. This will highly depend on your proof of income.

• Do you have a job? Submit your proof of income and make sure that the documents are authentic.

• Having a bank account can be an advantage, too. However, there are now establishments that use this as a secondary requirement.

How to Avail of Cash Advance

There are typically two ways to avail this service:

1. By directly going to money service establishments. These businesses are designed to offer quick cash loan through various means – cash advances, check encashing, payday loans, collateral-based loans, etc. There also those that encash digital money such as PayPal or Bitcoins. As they provide hassle-free loan application with minimal requirements, you may expect to pay staggering APRs or interest on your loan. Most of these services will also require borrowers to have an active or existing bank account.

2. Another option is with the use of charge card or credit card. Credit cards authorize owners or card users to withdraw cash directly from ATMs. Note that there is always a limit when it comes to withdrawing cash from credit cards. Most of cash advance providers impose an interest of 3-5% and will require users to pay the amount within 30 days. The advantage of using this method is that it is possible to withdraw cash in any state. On the other hand, cash advance services are only available in certain states.

Important Factors to Consider before Applying for Any Type of Loan

Cash advances, just like all other types of loans, are not ‘free money.’ They are accessible, but they need to be repaid, too. Before applying, you must understand the financial responsibilities you have. You need to understand that cash advances require massive interest and fee which must be paid within a very short period of two weeks. Note that both federal and state laws are applied in terms of requirements and of sanctions.

Each state has its own law concerning unpaid debts, bounced checks, or returned checks. Most establishments will initially contact you in case of insufficient funds in your account. If you still fail to pay for your loan, a collection agency may take over. This will also immensely hurt your chances of renewing your loan. Moreover, it can tarnish your credit score which will have an impact on your capacity to loan directly from a bank, purchase a home, etc.