Blog

Why You Should Get a Payday Loan

January 10, 2020 by marvin

When it comes to income, there are many times when you find yourself short of cash. Whether you have too long between paychecks or simply find yourself in a tough situation, payday loans are a great option. Why exactly should you consider them? These are a few reasons why a person might need to take one.

Problems with a Bank Loan

Although bank loans are often the way to go since they offer lower interest rates, if you have bad credit, you might not qualify for one. If you only need a small loan, a bank loan might not be worth the hassle. Payday loans are usually the better option when you simply need an advance on your upcoming paycheck.

Medical Emergency or Car Repairs

Incidental expenses are usually ones that happen due to unexpected medical or car needs. You may find that when you run into these problems, you need a little more cash than you have on hand. Taking a payday loan lets you resolve these bills with the opportunity to sort out medical expenses or take care of your car and then pay it back over time.

Emergency Money for Friends or Family

If you have a family member or friend who is in a tough spot financially, you may want to help them out. If they don't qualify for any type of loan, you can give them a boost by taking out a small payday loan yourself. You can help them out and then take care of the repayment afterwards.

These are some of the primary reasons why people take out payday loans. They aren't always your best option but they can be a good alternative to borrowing money from friends or family yourself. If you have a job and just need a little help, consider taking out a payday loan to get the cash you need without the hassle of a traditional bank loan.

Personal Loan Types for Your Personal Financial Needs

December 27, 2019 by marvin

There are several common types of personal loans, but which is right for you and your financial needs? We'll review 5 common personal loan types to help you understand which might best suit your needs.

Personal Loan Types for Your Personal Financial Needs

A personal loan is a specified amount of money borrowed at a fixed rate and repaid over a set amount of time. Each type of personal loan has a different set of repayment terms, finance charges, fees, and other terms. It's important to work with your lender to determine which type of personal loan is right for you and your financial needs. Here are 5 of the most common types of personal loans:

Unsecured Personal Loans

Most personal loans are unsecured. An unsecured personal loan is not backed by any form of collateral and approval is typically based on your credit score. This type of loan may have slightly higher annual percentage rates than some other common loan types with rates usually ranging between 5 % to 36 %. Repayment terms can range anywhere from 1 to 7 years.

Secured Personal Loans

Unlike an unsecured personal loan, a secured personal loan is backed by some form of collateral, like your home, car, etc. If the borrower defaults on the loan, the creditor can seize the collateral used on the loan. Since this loan type is considered less risky for the lender, rates are typically lower.

Payday Loans

Payday loans are short-term loans with high interest rates. A payday loan might be a good option for a borrower who needs cash fast. This loan type of unsecured loan, but it is repaid on the borrower's next payday rather than over a period of time. Typically, payday loans are for smaller amounts of cash than an unsecured or secured personal loan. For more information on payday loans, click here.

Installment Loans

Installment loans are another fast cash option for borrowers. Like a payday loan, installment loans are typically small-dollar loans. Unlike payday loans, installment loans are paid back over time in regular installments. Installment loans can be either secured or unsecured depending on the lender and borrower. For more information on installment loans, click here.

Co-Sign Loans

A co-sign loan is for borrowers with bad or no credit scores who otherwise may not qualify for a loan. For this type of loan, the lender uses your co-signers credit score to set the terms of the loan. If you have bad or no credit and are interested in learning more about how to increase your chances of getting a loan, click here.

No matter what your personal financial needs are, there's likely a type of personal loan available for you. Other types of personal loans include debt consolidation loans, personal lines of credit, fixed rate loans, variable rate loans, and more.

How to Get Your Credit Score into Better Shape

December 20, 2019 by marvin

Life can often throw some nasty curveballs your way. No matter how much you try to stay ahead financially, it doesn't always work out and you can find yourself behind on bills and with a bad credit score as a result. So here are a few tips on how to get that score in your credit report back up to where you need it to be.

1. Raise your credit limits.

Contact your credit card company and ask to get your credit limit raised without triggering a hard query. Raising your credit limit decreases your revolving balance ratio, which will improve your credit score. You lose nothing by asking, but just make absolutely certain that this can be done with a soft pull of your credit report and not a hard query.

2. Avoid opening new credit accounts.

Opening a credit account results in your existing account being hard queried and updated. Too many hard queries on your account can harm your credit score. These hard queries will stay on your credit report for two years, so try to minimize them.

3. Leave existing credit accounts open.

Don't close your existing credit accounts, unless they have fees that are contributing to your financial issues. Closing accounts means that your debts end up spread across fewer credit options, which can cause your credit score to go down due to an increase in your credit utilization ratio.

4. Pay your bills before they become overdue.

It can be tempting to let bills lapse for a bit when you are having financial difficulties, but this won't look good on your credit report. Try to put yourself in a position where you can pay all your bills on time. Consider setting up automated direct debits to pay your bills so that you don't need to do it manually.

Getting your credit score back into a healthy state is often just the beginning. Once you get your credit report score up you'll want to take a good look at your financial situation and see how you can improve it. So take a look at your options and see if there's a way to build up a savings reserve that can get you past life's frequent curveballs and give you some financial peace of mind in the process.

What is a Personal Loan?

December 13, 2019 by marvin

Borrowers often turn to personal loans to help pay down debt, when facing an unexpected emergency, or for any other type of financial need. Whatever the reason for taking out a personal loan, it is often a wiser choice than turning to credit cards for fast cash.

A personal loan is a specified amount of money borrowed at a fixed rate and repaid over a set amount of time.

Each type of personal loan has a different set of repayment terms, finance charges, fees, and other terms. Unlike credit cards, personal loans have a fixed rate, which means rates can't change over time and that your payment will be the same every month. (Most personal loans allow early payoffs should you wish to pay more than the fixed payment amount each month.)

A personal loan is either secured or unsecured.

Secured personal loans require some form of collateral, such as a car title, house, stocks, bonds, cash, etc., before lenders will agree to a loan. Collateral is simply an asset that is pledged to the lender until the loan is repaid. If the borrower defaults on the loan, the lender may seize the collateral in lieu of payment.
Unsecured personal loans do not require any collateral and are based upon other factors such as the borrower's credit score, credit history, income, etc. Unsecured personal loans are more common than secured personal loans.

It's important to work with your lender to determine which type of personal loan is right for you and your financial needs. You can apply for a personal loan at a bank, a credit union, or an online lender.

True or false: Will My Debt Go Away After 7 Years?

December 6, 2019 by marvin

Debt: nobody wants to experience it, but many people do. There are numerous understandable reasons why you may go into debt, and it's not always a bad thing. Although looked down upon, going in and out of debt can be the normality in many people's lives. There are many misconceptions surrounding debt, but in this article we will address biggest misconception surrounding the topic of debt.

True or false: Will My Debt Go Away After 7 Years

All Debt Goes Away After 7 Years…?

Like an old wives tale, the misconception that debt simply goes away after 7 years has been around for a long time and because of this, many have believed it. But it's simply not true. Debt does not have an expiry date, the only moment debt will go away is when it's paid.

The Truth About 7 Years and Debt

After 7 years, your debt will be taken off your credit report. Even if the debt has been removed from your credit report, you must still pay it. After seven years you may notice that other negative aspects on your credit report are gone, including your debt. Whilst your credit score and other aspects may have cleared, debt will not. Debt will not clear until it's paid, so no excuses, get that debt paid.

How to Get a Loan with Bad Credit

November 22, 2019 by marvin

If you have less-than-perfect credit, getting a loan may seem like a daunting challenge. But, there are some steps you can take to get the loan you need even with a bad credit score.

What is a Bad Credit Score?

Lenders look at your credit score in order to gauge whether or not you will be able to repay a loan. Credit scores range from 300 to 850. While different lenders have different ways to determine what is considered a 'good' or 'bad' score, higher credit scores are always more favorable to lenders. Typically lenders consider credit scores between 700 and 850 as good, credit scores between 620 and 679 as fair, and anything below 620 as poor. The higher your credit score, the more likely a lender is to see you as being able to repay your loan, and, thus, more probable to give you a loan.

How to Get a Loan with Bad Credit

Most financial experts agree that unless you need immediate money for an emergency, the first step to getting a loan is to improve your credit score. This will make you more favorable to lenders and lower the interest rates on any loans you may receive, which will make it easier for you to comfortably pay back the loan amount.

However, sometimes emergencies arise and we need cash now. Even with a poor credit score (or no credit score), there are some things you can do to help lenders see you as a more favorable candidate for a loan.

Request an in-person interview with your lender to convince them you will be able to repay a loan. If you can get an interview, bring documents that prove you are a good risk to them. Anything you can show them that proves stability will be looked upon favorably. Consider bringing the following: tax returns from at least the past two years, job history details, a list of your current assets, a list of your current debts proof that you have paid off loans in the past, etc.

Shop around for lenders and consider different loan types such as secured and unsecured personal loans, payday loans, title loans, and peer-to-peer lending, cash advances, home equity loans. Be sure to do your due diligence, though, and watch out for potential scams. While a lender does their research on you, you need to research your lender. Look out for the following red flags of a potential scam: the lender doesn't check your credit or income, the lender does not have a Better Business Bureau raking or customer reviews.

In order to increase your chances of getting a loan, you can ask a close friend or relative with a favorable credit score to co-sign on your loan. The lender will use your co-signers credit score to set the terms of the loan. Your co-signer will be equally responsible for repaying the loan and it will appear on both of your credit reports. As long as payments are made on time, your credit score will improve which will make it easier to secure loans in the future without a co-signer.