When you are in a financial tight spot and you need help, it is common to consider short term cash loans. This is a viable option as long as you go about things the right way. Here are a few mistakes to avoid if you want to have a positive experience.
Never apply for short term cash loans for someone else. These loans are generally available to people who are not in the best financial situation. So being unable to secure a loan on their own proves that they are not very reliable. You do not want to ruin your credit in order to help someone else – this is simply not worth it.
Always err on the side of caution and borrow the minimum. These loans tend to come with a very high rate of interest and fairly high fees. You can avoid some of this if you borrow as little as possible. It is usually nice to have extra on hand, but this does not really apply in this particular case.
Only apply for this type of loan if you are really in dire need. There are many banks and credit unions who are more than willing to offer customers loans that have more favorable terms. The downside to this is the fact that there is a waiting period that one has to endure. If you have the time to wait, you should certainly consider one of those loans instead.
It is pretty unfortunate when you are in a position where you need money rather quickly. If you are in this situation and you are thinking about getting a short term cash loan, make sure that you try your best to avoid all of the mistakes that were mentioned here.
A credit score is number between 300 and 850 that allows lenders to see how worthy you are of credit. It is a very important number that you should keep as high as possible.
Having a high credit score can make your life a lot easier. So, once you get your credit score to a good level you need to work to maintain that good score. In this article I will tell you ways to maintain a high score.
1) Do not allow yourself to receive a late payment. This is the best way to keep your credit score high because it makes up 35% of your score. Late payments can damage your credit report for 7 years!
2) Do not max out your credit cards. The more credit you have available that you are not using the better.
3) Keep old cards open, even if you no longer use them. The length of your credit history makes up 15% of your score, the longer credit history the better.
4) Do not apply for a lot of credit at the same time. Every time someone runs your credit report in order to see if your worthy of credit you get a hard inquiry on your report. Having more than one or two inquires can damage your score.
5) Maintain a good mix of credit. This means having credit cards and personal loans, but not too many of one.
If you go to :
www.annualcreditreport.com you can get three free credit reports a year from TransUnion, Experian, and Equifax but you will not get a free credit score. However, there is a website that will allow you to check credit score free. The website is www.creditkarma.com the site offers you a free credit score anytime you want it for free! The credit score comes from TransUnion. This is a great website that also shows you ways to save on credit cards and bank accounts. If you are trying to improve your credit this is a great site for you.
If you take the time to learn about credit and work to make yours the best possible you should have no problem maintain a good credit score. Go to
www.annualcreditreport.com to make sure everything on your credit report is correct. Also take advantage of the great free site www.creditkarma.com and check your free credit score. Once you understand how your credit score is made up you should have no problem keeping it high, good luck!
Online personal loans for bad credit are one of those things that everyone might need from time to time. They can be used for a thousand different things, but there are some stipulations that you should be aware of before you jump into something that you cannot repay in time or cannot afford in the first place. These loans can be used for everything from:
- Improvements Around The House
- Unexpected or Emergency Bills or Payments
- Holidays or Birthdays
- Wedding Costs and Receptions
- To pay off credit cards, or consolidate the existing credit you have.
These types of loans really can be used for everything, but one thing that they shouldn’t be used for is things like the purchase of a home or a vehicle. It’s best in those cases to actually improve on your credit score so that you can get a loan that has a lower interest rate and the opportunity to actually refinance. With online personal loans for bad credit you will have usually between one to three months to pay back the money that you’ve drawn out.
Make Sure You Shop Around for a Good Deal
One of the best ways to get the best deals on online personal loans for bad credit is by shopping around online to find the most trusted place. You want to be able to feel comfortable giving things like your bank account information and your social security number and you won’t be able to do that if it’s not a place which is well known. Like with anything if it sounds too good to be true it usually is and the same applies here.
You Can’t Improve Your Credit Score With a Payday Loan
Getting online personal loans for bad credit doesn’t mean that you will improve your credit score at all. Most of them don’t even report on your credit which means that even if you make perfect payments it isn’t going to improve your credit score. These loans also have a very high interest rate as well which means the worse your credit score is the more you are going to pay in interest. Someone should only get one of these types of loans if they for sure can pay it back on time and if they can afford how much money on top of the loan that they take out in interest.
Trusting Who You Are Working With
You want to trust who you are going through as well, and that means even if you are going through an online company that they have available staff that can actually speak with you on the phone, or even a brick and mortar building in your city so that you can meet them face to face. It’s much easier to be able to give your information to someone who is standing right in front of you rather than typing it into a computer screen. To get online personal loans for bad credit, the trust comes with research and making sure that you pick the right place for you. It’s not just about the money, but also the friendly people you will be able to work together with.
The Internet is a great place to find virtually anything that you need, whether this is a product, service or information. It is a fantastic way to locate payday loan businesses that will be willing to work with you, providing you with the money that you desire. The amount of money that you get will depend on the company that you choose to work with, and the maximum amount that they will lend. All of them work in a very similar fashion, basing their approval of your request upon the next paycheck that you will receive, but there are other ways to evaluate these quick cash loans companies.
Choosing A Company That Can Help You
The business that is able to help you will be one that will not require you to submit any information about your credit. It will also be a business that is willing to deposit the money, usually in as soon as 24 hours. The approval process will take several hours after your application has been submitted, and you will receive some type of notification once it has been approved or denied. Most people experience getting approved, and the money can be deposited into their account shortly after the approval has gone through, allowing them to pay their bills.
Understanding The Higher Interest Rate
Just as with any company that is providing a unique service that cannot be obtained anywhere else, payday loan businesses charge a higher than normal interest rate on the money that they are going to lend you. This protects them in case you are actually a bad risk, and they are not able to recover the money that they have provided you. It is also a way that they make money, providing the lender with his cut, and the payday loan business with their commission, making this a win-win scenario for everyone involved.
After you have the money, you need to make sure that you use it for the bills that you are behind on, not for some leisurely product or activity. You need to pay the loan off before the due date, and that will protect your credit. It will also ensure that if you ever need to use this company again, they will be there to help you the next time that you are behind on your bills. You can submit your information to a couple different businesses, and one of these quick cash loans providers will be there to help you resolve your financial difficulties.