Tag Archives: loan
Guaranteed Finance For People With Bad Credit
If asked, a lender would state that bad credit history equals to an illness and thats the reason why they seem to run away from bad credit applicants. Loan applications filled by people with a bad credit score or history are usually declined without much thought. However, not all the lenders make this kind of mistakes.
Past, Present, Future
The truth is that many lenders are aware that people who currently have bad credit used to have good credit or even excellent credit and for unexpected situations their ability to obtain finance was heavily compromised. Past financial mistakes should not determine once financial future as long as people learn from those mistakes and thats what more and more lenders are beginning to understand.
Secured Or Unsecured Loans
There are many online lenders dealing with bad credit personal loans. This kind of loans can be secured or unsecured. Unsecured loans do not require collateral but often carry higher interest rates due to the high risk involved. Secured loans carry lower interest rates and require collateral. Thus, you should only request a secured loan if you are certain that you will be able to afford the monthly payments. Since the collateral guarantees the loan, you are risking the asset and the lender can claim his money by use of the legal action of repossession.
Uses And Benefits
The uses of bad credit personal loans are variable, ranging from going on vacations, buying a car, and most commonly debt consolidation. Specially when used for eliminating debt by paying off bills and credit card balances, Bad Credit Personal loans will contribute to raise your credit score and improve your credit history. The timely monthly payments will be recorded into your credit report, enhancing your credit situation till you can acquire a good credit tag.
Co-signer
A way to make sure a lender will approve your Bad Credit Personal Loan is applying with a cosigner, especially if he or she has a better credit score and history. This way, the lender will take into account the co-signer credit report when deciding whether to approve your loan or not. The risk involved for the lender will be significantly lower because the co-signer will also be responsible for paying the monthly installments if you fail to repay on time.
Interest Rates
Interest rates are usually higher when it comes to bad credit personal loans, however they are usually lower that credit cards interest rate, which makes them a better source of finance. Also, there are many options available out there, so do not settle for the first proposal and ponder what each lender has to offer you. Be aware that variable interest rate, though it is usually lower than fixed interest rate, can vary according to market conditions changes and you may end up having to pay higher monthly installments if the market situation worsens significantly.
Online Lenders
The wisest thing to do is to search online, there are many online lenders offering very reasonable interest rates and you will be able to get quotes from them and compare rates and fees before making a decision.
4 Top reasons why you should prefer 3 month loans over payday loans?
The concept of 3 month loans is slowly substituting payday loans. This article lists four prime reasons why one should prefer 3 month loans over payday loans for the knowledge of readers of this article.
Urgency of cash always drives people to the walls. In such times, normal tendency suggest that one should go for payday loans. However, opting for payday loans in such situations might not be the right decision in such situations. Hence, what to do then? In such cases, if better sense prevails, focus should be on finding a deal that gives ample chance to repay the loan but not without putting much stress on sources of income of the borrower. Obviously, finding a short-term alternative of this type isn’t that easy but then as the popular adage goes, ‘Where there is a Will there is a Way’.
3 months loans are known to be the best alternative to modern-day payday loans. Reason: There are plenty but few have been listed here.
Point No.1 – Longer Repayment Tenure
Yes! 3 month loans become an obvious choice for people who need an instant credit help but are not in shape to repay it back almost the same way. As the name suggests, the time-period offered is sufficient to repay any sort of short-term debt. Clearly, longer repayment tenure makes them the most sought-after loan product in the industry today.
Point No. 2 – Comparatively Low APR
Another place where 3 month loans earn brownie points is on APR front (also known as Annual Percentage Rate). Normally, as everyone knows, payday loans are secured against next month’s paycheck of the borrower. But even then the APR is on the higher side. However, in case of 3 month loans, APR is far more relaxed then its payday loan counterpart because of the time duration.
Point No. 3 – Larger amount can be quoted!
Under 3 month loans banner, one can quote a comparatively higher sum as loan amount than in case of payday loans.
Point No. 4 – Room for negotiation with lender!
In case if you have missed the deadline or you are set to miss the deadline of payment of instalment. 3 month loan give you an option to talk to your lender and explain things to him/her and ask for an extension. But remember, the decision to extend the deadlines or granting such favours rests with the lender only. Although the same chance is also available to lenders under payday loans but then you don’t have much time at your disposal to ask such things.
Meanwhile, the fourth point is applicable if the borrower wishes to seek waiver for certain fraction of interest or amount.
If one will gave a close look to these differences, he/she will surely be able to figure out why one should prefer 3 month loans over payday loans.