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Debit Card Loans: optimum funds to deal with monetary emergency
Overcoming the monetary deficiency is not possible, if you are not having the proper financial backup. In case, you are required to avail the funds through other viable alternatives, it is you who will have to choose the type of loan, you are looking for. Since you will always look for funds that can be acquired against the best of terms, the ideal option would be to go for debit card loans, provided you do own a debit card. Once you have acquired the loans, you will get to attain the funds instantly and that too, without much of any complications.
The loans, unlike other regular loans do not need any collateral to get approved. This is largely possible owing to the fact that these loans are made available for a short term period. In addition to these, the same lenders do not check the credit history, while releasing the funds. The approval without any credit check in fact makes way for those having severe credit problems to acquire the funds.
If you are employed for the past few months and do have a debit card, then you can immediately source these loans. Along with these, you must be a permanent citizen of UK and that your age should be more than 18 years. On fulfilling the desired criteria, you will get to avail the funds instantly and that too, without much of a hassle.
Under the aegis of these loans, an amount in the range of £100-£1500 is immediately released, which you an use to deal with needs such as paying medical bills, credit card payments, house repair, maintenance of car and so forth. The amount borrowed then has to be repaid over a period of 14-31 days.
In context of these loans, the interest rate charged can be a bit higher. However, by undertaking a proper research, you can come across lenders offering suitable terms. You can also avail these loans from lenders based online. Online application is convenient and do provide you access to the best offers on these loans.
Instant payday advance allow you to avail quick funds against convenient terms, so as to overcome any sudden financial urgency.
What Goes into Your Credit Score?
Credit scores can be computed using different credit scoring systems but the most widely used system today is the FICO score. Its formula was created by the Fair Isaac Corporation and is the one used today by many lenders, banks, financial organizations and the major credit bureaus (Experian, Equifax, TransUnion.
The perfect FICO score is 850 and although achieving this number may seem unrealistic, getting a score ranging from 720 and above is already considered as good to excellent. However, a FICO score below 620 will put you in the category of a “high risk borrower”. Thus, it is recommended for everyone to be aware of the factors that make up their credit score.
Factors that Determine Your Credit Score Payment history. Your payment history comprises 35% of your total credit score. Here, how timely you are in submitting your payments, how long it takes you to pay your past due bills, how many times you were late or missed with your payments, and everything that has to do with your payment habits count.
Credit line usage. How you use your credit limit makes up the 30% of your credit score. The higher the usage of your credit limit, the lower your credit score is. Ideally, borrowers should not go beyond 30% of their available credit. If you own a low interest credit card, be careful not to maximize your credit line as this can damage your overall FICO score.
Length of credit history. 15% of your total FICO score is based on how long you have had credit. A longer record of credit history is of course more impressive especially if it shows timely payments all throughout. Be careful about closing your oldest accounts. Dont close your oldest credit cards just because they have high rates. The trick is to use them only for small purchases and pay off your balance in full always to avoid the interest rate.
New credit. Opening too many different accounts at once or in short period can pull down your credit score. Why is this? This gives a negative impression to lenders on why you need to apply for too many credit in that short span of time. Having too many inquiries made by the lenders whom you submit application to will also affect your credit score. If you are in the habit of sending credit card applications just to get the free shirt or the free cap upon signing up, stop now. Youre doing damage to your credit and thats not worth the freebie youre getting. Remember, new credit makes up 10% of your total credit score.
Types of credit used. The types of credit found in your credit report make up the other last 10% of your score. Having a variation of accounts in your credit report is definitely a good thing. For instance, aside from credit card accounts, having a mortgage, an auto loan and other credit in your account shows your capability in how you handle your obligations as a borrower.