Monthly Archives: January 2014

How Can Borrowers with Bad Credit Avoid the Pitfalls of Short Term Loans?

Today’s loan market is much different from the past market conditions. The 21st century recession has redefined the good and bad credit scores and most people fall on the hard times. The process of obtaining traditional unsecured loans is very much the same, but the surrounding options have changed dramatically. But, for people with bad credit score, payday loans or no-credit check loans offer a solution, which was not available before.

Why Payday Loans May Be A Choice Borrowers Ultimately Consider?
If you tend to have a bad credit score then unsecured loans from traditional banks are almost impossible to get and if in case it’s approved, it will take forever to process. Hence, when you are looking for ways to get cash up to $1,500 in a fast way, the best option to opt for is to get a payday loan, also called no-credit check loan. These are the short term loans that can give you instant cash infusion and then can be promptly repaid in the most hassle-free manner. As these loans are not dependent on the credit check, a bad credit will not restrict you from getting money when you need it.

Minimum Qualification Criteria You Must Fulfill

This loan surely doesn’t depend on credit check, but it is not free money too. There are few minimum standard criteria that you must meet in order to receive a payday loan. These are just the basic criteria that should be very easy to fulfill. The qualifications include:

1) You should be 18 years old or above.
2) You should be having a job for six months along with a reliable payslip.
3) You should have access to a bank account.
4) You should have a citizenship proof or permanent residence.

As long as you fulfill all these criteria, any payday lenders will extend you a no-credit check loan.

Learn about Your Options

Short term payday loans are not the same as traditional unsecured loans in any way for two reasons: the payday loans are meant for small amounts of cash and are for shorter time period. This kind of loans lets you borrow $100 to $1,500 depending on your income level. And it has to be repaid in a time period of 14-30 days, though few payday loans can be repaid in 60 days too.

So, when you contact the payday lenders for getting a loan with no-credit check, make sure to learn about all your options and determine the best for you. Due to the nature of the payday loans, you should be ready to pay them back in a short span of time as delinquent and late payments involve huge penalties. So, it is advised to go for these loans only when you are sure that you can pay back the money before the due date.
So, to make the most of the loan and avoid the pitfalls in such short term loans, it’s crucial to have a detailed knowledge about the matter!

Where Should Consumers Who Have Too Many Loans Look To Consolidate

Those who are struggling with debt, too many loans, and bad credit are always looking for the best way to stabilize finances. Debt consolidation loans can be a good way to get out of debt, but it may be difficult to know where to look for debt consolidation. It’s important to realize that there are many choices available, regardless of what your credit looks like or what your financial situation is. Taking the time to understand what each debt relief option offers will enable you to make the best decision for loan consolidation.

Banks and credit unions are often the first place that those who are trying to consolidate their debt look to. Although it makes sense to look for debt consolidation with bank or credit union that you know and trust, you still may not be approved for a loan with them. Banks and credit unions do offer lots of traditional loans and other services, but they may not always offer debt consolidation loans. If you are approved and have bad credit, chances are that you will end up paying very high fees and interest rates than you would like. Remember that there are plenty of other options, so continue to research your options before signing any paperwork.

Debt consolidation lenders work independently and differently than credit unions and banks do. The sole focus of debt consolidation lenders is to offer consolidation loans. When you choose to get a debt consolidation loan from this lender, you are agreeing for the lender to pay off all of your current debt so that you can make one monthly payment to the lender only. The interest rate that you will pay to debt consolidation lends is based on your current credit and your demonstrated ability to pay back the loan. Reputable lenders will understand that not all loans are suitable for each situation and will typically offer multiple options to ensure that you will be able to pay off your loan.

Debt Settlement is making monthly payments to a settlement provider to deposit into an escrow account. While doing this, the provider will negotiate with your creditors to get a lower settlement on the outstanding amounts that you currently owe. Once agreements have been reached, the money in the escrow account will be payed to creditors. This is a good option for those who are unable to afford monthly payments, but want to avoid going bankrupt.

Regardless of where you choose to go for debt consolidation, remember to review your options and research the companies or lenders and what they offer. Making an informed decision about debt consolidation can make the process much more easily and smoothly.