Having an impeccably untainted is what will always help you get approved for any kind of loan, or so they think. Therefore, the first thing people in search of a fast cash influx are how diligent they will look in the eyes of a potential lender. If the credit history is subpar (or non-existent, which is also a ground enough for rejection), many will consider searching the required sum of money elsewhere. However, few know that there is no need to place oneself in an embarrassing and often awkward situation of asking friends or relatives for financial help. The term “bad credit payday loans” has been circulating around since the very notion of cash advance was legalized back in the early 90s.
But how much of a “free cheese” this kind of lending tool really is? And what affects the odds of qualifying for a loan when your previous history has been anything but perfect? As is the case with most anything that concerns financing of individuals, there is no one-size-fits-all kind of answer to these questions. It is essential that a borrower understands the pros and cons of applying for a payday loan, as well as a basic understanding of how to avoid usury fees and predatory activities of unscrupulous lenders.
Customers in need of an urgent cash advance have severely reduced opportunities, and thus their choice of lenders is dramatically limited. It is then understandable that under such circumstances, people tend to grasp at whichever opportunity that presents itself first, with little regard of underwater currents. The consequences of applying for a bad credit loan from an unscrupulous lender can be outlined as follows:
Let’s briefly focus on every item above. The rates that one can find oneself being constricted to pay as a fee for using the loan are controlled by the legislature of state, and though varying from one part of the country to another, they should normally be kept at curb. But when an unfortunate coincidence of several factors like a tainted credit history of a borrower, limited amount of lenders likely to issue an advance, and a state with payday loan legislature that give lenders more rope, this is when credit rates tend to spin out of control.
An advance fee is almost always a sure sign of a scam or in the very least a shady lending company. The risk of paying an advance fee and never receiving any loan is high; you should steer clear of companies demanding that any such fee is payable upfront.
When a company is not interested in studying the possible ways and realistic terms of credit repayment of the borrower, it only means one thing: they are not concerned about how this latter is going to return the money, and they are very seldom scrupulous and sensible about the methods of collecting it. Given access to customer’s electronic account, they will not take into account other payments due and the rest in the borrower’s balance after transaction. This is an illegal practice which unfortunately is still poorly controlled by the state.
Whatever you do, you should not agree to leaving your vehicle as a way of providing a deposit. The disadvantages and future costs of such decision are incommensurable with the benefits at hand. Besides, no good faith lender would make it a condition to have a borrower’s car as a deposit.
While it is impossible to avoid credit check history as such, one should bounce off sites of lenders that perform the so-called “hard credit check” – a type of inquiry that leaves a rejection trace in its documentary wake and further compromises the borrower’s credit history.
Everyone is familiar with the “fine print” phenomenon and the dangers it entails. This is all too applicable to the matters of signing a money lending agreement. According to the legislature, a lender must inform the borrower about terms and conditions in a clear and unambiguous way.
Even those who have access to a personal line of credit by being a credit card holder choose to apply for a payday loan rather than borrow money from their bank. Why is that so? There are several reasons for that:
This said, the choice between a credit card line of personal crediting and a payday loan should be based upon understanding how these two work. And while a lot has been said about personal loans, there are some basics to be brought into light that will help you understand while a personal advance is better than credit card.
A credit card allows you to make payments online and at all merchants affiliated and equipped with POS terminals (Point of Sale), as well as withdraw cash from ATMs (Automated Teller Machine) by entering the PIN issued by the bank and consists of four digits. Commissions are charged when cash is taken from a credit card. Payments and withdrawals are debited to the holder’s current account at a later time: generally on the 15th of the following month from the day of the transaction and in any case no later than 30 days from the transaction. The credit cards provide a monthly expense ceiling (plafond) that varies according to the type (some cards may have no limit) and that works as a credit facility made available by the bank. Standard cards usually have a monthly spending limit of around $1500.
In this regard, especially when traveling, attention must be paid to the type of payments that are made. For example, suppose you rent a car for 5 days for the price of $500. When the car is withdrawn, the rental company usually asks for a guarantee, for example equal to $500. From the monthly amount, therefore, are raised $1,000, a figure that is deducted from the ceiling (albeit only half virtually) for the whole month in question. In order not to run the risk of being without or with limited spending availability, you can go to the bank and temporarily raise the ceiling.
One of the merits of the credit card, that is, the postponed debit, can be a double-edged sword because, if you do not keep your expenses under control, you risk getting into debt, undermining your creditworthiness. If you take cash from an ATM, moreover, you pay the commissions of all respect: lower if you are in the United States, higher if you are abroad. Finally, although security systems are increasingly sophisticated, the credit card can be cloned and used for fraudulent transactions.
The bottom line is as follows: while credit cards have their legitimate advantages, they are more of a solution that is up one’s sleeve, which goes to say that they require a certain degree of planning. Credit card lacks this obvious benefit of a payday loan swiftness and efficacy when you need money fast. It takes several minutes to get approved for a personal loan, with a credit history check not being anything as thorough and lengthy as in case with a credit card.
There are many differences that distinguish these two types of funding, the first and fundamental concerns the category of applicants. In fact, while the personal loan can be requested by any person with income (pensioner, employee, self-employed), credit card can be used only by those who have an open line of credit with the bank. Self-employed workers who do not have a paycheck can only apply for a personal loan.
Moreover, while personal loan can sometimes be granted to rejected or bad payers, which is not the case with a credit card: once rejected by the bank, it is nigh impossible to start using the credit card when the credit history is daunted by a late payment of fees or the debt itself.
Both forms of loan have advantages, but it is advisable that the applicant always pay attention to choose the one best suited to their needs and characteristics, in order to obtain the most liquidity at the most advantageous conditions.
Applying for a personal loan, even with a bad credit, is easier than most think. You will need to:
If approved, a personal loan is granted within the ensuing 24 hours. You will receive up to $1,000 the next day in any way that is convenient for you, but with the advance of online services lending money to individuals a direct bank account deposition ousted somewhat outdated forms of receiving money through a check sent by regular mail or cash collected at the loan store.
To make sure that you deal with a reliable and scrupulous lender, we suggest that you let a professional service pick one up for you from a range of reputable payday loan businesses that are on top of that ready to issue a loan with relatively low fees for bad credit history customers. The sum of loan might be lesser than required in some cases, but resorting to help of a payday loan platform will guarantee that at least several of lenders will be ready to grant you the required amount of money.
When taking steps in order to sort out your financial matters, it is important to accurately assess your current pecuniary situation. Take a close look at the following aspects before you apply for a loan:
You need to be certain that you will be able to repay your loan in a way that will not undermine your personal budget. It is for this reason that we strongly recommend you use an expert service specializing in lending payday loans with the best rates and terms available for every individual borrower. Such service will automatically calculate which lender suits your needs best and will make an offer based on the lenders ready to approve your candidacy. Another upside of this method is that the choice will only be made from honest law-abiding lenders.
After using up your payday loan, the following steps will help you repay it:
• Round up each payment so that you end up with paying slightly more than needed; those insignificant, at the first glance, extras, will soon accumulate to significantly relieving odds.
• Make extra payments when possible – with an unpaid loan, it is always a good idea to steer any extra money you have towards the financial freedom.
• Consider loan consolidation: rather than accumulating unpaid debt and connected fees, make use of loan restructuring tool available with lending companies.
• Opt for paperless statements. Moving from paper mill to clicks helps save considerably, while automatic fee collection helps to avoid late payment penalties.
• Be consistent with payments! This is very important to avoid overpaying in late fee charges.