Month: November 2019

When it comes to borrowing money, terms like fixed rate and variable rate often pop up, especially when discussing loans like payday loans. But what do these terms mean, and how do they apply to a payday loan? Let’s break it down in simple terms.

Understanding Fixed and Variable Rates

A fixed rate means the interest rate on your loan doesn’t change. Once you agree to borrow the money, the interest rate you get stays the same for the entire time you’re paying back the loan. Think of it like buying a ticket with a locked-in price for a concert far in advance.

On the other hand, a variable rate can change. It’s like the price of your concert ticket could go up or down before the event, depending on how popular the artist becomes or how the economy is doing. For loans, this means the interest rate might increase or decrease over time based on market conditions.

Payday Loans: Fixed or Variable?

Now, what about payday loans? Are they fixed or variable? Typically, payday loans have fixed interest rates. When you take out a any kind of cash loan like this, you know exactly how much interest you’ll pay because the rate doesn’t change. This can make budgeting easier since your repayment amount won’t fluctuate.

However, there’s a catch. While the interest rate might be fixed, the fees associated with payday loans can sometimes feel like they’re variable. If you can’t pay back the loan when it’s due, you might end up rolling over the loan, which means you pay an additional fee to extend the repayment date. This isn’t changing the interest rate but adds to the overall cost, making it feel like a variable rate in terms of total repayment.

Pros and Cons of Fixed vs. Variable Rates

Let’s dive into why someone might choose one over the other:

• Fixed Rates:
  • Pros: Predictability. You know exactly what you’ll pay each month, which can be a huge relief when budgeting.
  • Cons: If interest rates drop, you won’t benefit from lower payments. Also, fixed rates might be higher initially to protect against potential future rate hikes.
• Variable Rates:
  • Pros: If interest rates fall, your payments could decrease, saving you money. They often start lower than fixed rates as an incentive.
  • Cons: If rates rise, your payments could become unaffordable. This unpredictability can make budgeting challenging.

When considering a payday loan, if stability is what you’re after, a fixed rate might be your best bet. But remember, payday loans are known for high fees and interest rates, so they’re best used sparingly and only when absolutely necessary.

Before deciding, think about your financial situation carefully. If you’re worried about making ends meet, perhaps look into other options like no credit check loan alternatives or even discussing with friends or family for a loan, which might come with more flexibility and less interest.

In conclusion, while payday loans generally offer fixed rates, understanding what that means for your wallet is key. Always weigh the pros and cons, consider if there’s a less costly way to borrow, and make sure you can definitely repay on time to avoid extra costs. Borrowing should be a thoughtful decision, not a hasty one.

At some point in your life, you might’ve wondered how your credit report impacts all your loan applications. When you are applying for a loan, it is essential to fully understand how your credit report works. And what can you do to use it to your advantage when anticipating for loan approval. Generally, lenders look at every angle in your credit report and what they find out will impact the result of your application.

Credit Report

In the simplest sense, a credit report is a person’s creditor history gathered in a single report. It facilitates your credit score and it is designed in a way that allows creditors and lenders to instantly determine your creditworthiness. If you ever applied for a home loan, credit card, personal finance, electricity, gas, or mobile phone contract, you already have an existing credit report on one of the many credit reporting agencies.

Credit Reporting Agency

A credit reporting agency is considered a company that gathers and keeps a person’s credit details. Creditors and lenders utilize these details to examine someone’s credit history. The vision of credit reporting agencies is to make sure that they have sufficient information to assist the lenders in making intelligent decisions.

Loan Application and Credit Check

If you apply for a cash loan from a lender, multiple consent forms and different information will be collected during the application process. The lender will ask for your complete name, birth date, gender, residential address, driver’s license, and employer information. All of these will guarantee that they have sufficient information to precisely examine your credit report. It is very important that you provide the appropriate information when applying for loans or credit since this will greatly help make application procedure seamless and fast.

The Information Lenders Examine on Your Credit Report

When a lender asks for a credit report from the credit reporting agency of their choice, there are different information that they examine to help them decide the outcome of your application. The first two things that they look at are your credit report and credit score. These are the two most important information on your report. You score will tell them your repayment capacity. In the lender’s point of view, the higher the score, the more likely you can repay the loan. The age of your credit report is another vital information that will make the lender trust you. For them, the older the credit report without any major problems, the better it is. Other than these two, the lenders will also examine other aspects of your credit report like past addresses, enquiries, defaults, court actions, bankruptcy, and business transactions. This information will impact your credit score and allow the lender to clearly see your financial history.

Improving Your Credit Score: Things to Avoid

If you badly wanted to increase your credit score, you should know what things to avoid and stop doing. The thing about your credit score is more does not necessarily mean better. Information such as the amount you plan to borrow and enquiries impact your credit score. When you know how much money you need, stick to it and don’t take more than that. When you apply for a bigger amount than what you need, it will affect your credit score – and not in a good way. Moreover, if unforeseen expense appears and you have no other resort than to apply for unexpected bills loan or emergency cash loans, avoid applying from numerous lenders simultaneously. Multiple enquires over a short amount of time will negatively impact your credit report and give the lenders the impression that you are desperate for money.

To take care of your credit score, limit your loan application to one lender and wait for the outcome first before you apply from a different lender. In addition, you should also prevent default listings to show up on your credit report. The best way to do it is to completely avoid it. If you happen to default on a certain lender, electricity companies or telco company, they can record a default listing on your credit report. The majority of these companies will hire a hardships team to help customers look for manageable solutions to repay what they owe to the company before recording it on your credit report. Reach out to your lenders and find a good solution to avoid default listing.

Free Credit Report

If you are a consumer, you are eligible for one free credit report every year. But if you want an instant credit check, you might be asked to pay. But, if you don’t mind waiting for 10 days, you can access your credit score check online. All you need to do is to reach out to any of the major credit reporting agencies. They will ask you to give your complete name, residential address, birth date, driver’s license number, and past address.

Many people, when they consider a payday loan, are afraid to do so thinking they will not qualify for a loan because of a bad prior history of borrowing. If you have a bad credit history, we encourage you to apply for a no credit check loan from us today.

Why It Pays to Check your Credit Report

It pays to know the information record on your credit report. There’s nothing wrong with knowing and it will enable you to change your borrowing habits – if there’s something that’s needed to be changed. Examining your credit report will also inform you of any inaccurate listings that might be due to identity theft. All in all, here are several things that you should watch out for in your credit report:

• A debt that’s been recorded twice
• Incorrect name or birth date
• Old address
• Inaccurate debt amount

Basically, checking your credit report will help you determine if you have weak credit and what kind of loan you may be qualified for. Once you find inaccurate information on your credit report, make sure you fix it as soon as possible. So, how do you fix it? You can contact the information provider and credit reporting agency since it’s both their responsibility to fix any incorrect details. However, you also needed to inform them of the wrong info. Tell them the facts and collect any documentation that will support your claims and mail or email it to the two providers.

Pawn is the amount of money given to you that corresponds to the value of your property. In the case that your default on your loan, the item will not be returned to you. Once you agree to pawn a particular item, this means that you are also transferring the asset to the pawnbroker once you fail to meet the contract terms. The reason why many people choose to pawn their personal items, such as a car, is because it could give them quick and accessible cash. However, pawnbrokers don’t have to follow any code of responsible lending that lenders do.

Pawned My Car, Can I Still Use It?

Based on our firsthand experience, there are many pawnbrokers out there and they don’t have the same criteria of operating their business. However, most of them will let you use your car even if you pawned it against a loan. There are even some that will allow you to lend some money as compensation for the car parts – in the case that it’s too expensive. It is still best to check their individualized terms and conditions to determine what you are entitled to.

Secured Loan

Based on our observations, when borrowers use their assets to serve as collateral for the loan, they are taking a cash loan. Most lending companies will do everything to offer other avenues like rebuilding your loan so it suits your current financial capacity before they will finally take your asset – which can be in a form of car, house, and etc. Typically, a secured loan is a much better and safer resort compared to a pawn loan – though the money might take a little while to process. If you find pawn loan way too risky, taking out a secured loan is your best option to get the money that you need.

Secured loan lenders are not pawnbrokers. They will not offer immediate cash for your car, but they do have same-day approval – depending on your financial circumstances. The great thing about secured loan lenders is they follow responsible lending. Their primary goal is to provide convenience and ease to the borrowers. This means that you could take out a secured loan of as much as $10, 000, without the need to leave your home. In fact, you can even fill up the application form on your smartphone!

Moreover, you can utilize your car as collateral when applying for a secured loan without worrying that it will be taken from you. This is because the lenders will not allow you to take out cash that’s way beyond your repayment capacity. A payday loan also has a realistic assessment and the lenders are accommodating and understanding.

Can I Use My Car Against Secured Loan?

We have found from using this product that, if you are wondering if you can still use your car even if it is considered as collateral against the secured loan that you took – the answer is yes. Though there are various kinds of lenders that offer secured loans with numerous sets of terms, the majority of them will allow you to drive your vehicle. But, it is still best if you check out the terms and conditions of your lender – just to be sure.

Can I Use My Car As Collateral For A Personal Loan?

You can use your car as collateral for a personal loan when you apply for a secured loan from an online lending entity. Unlike an unsecured car loan, using your used car as collateral can help you take a bigger loan no matter what your credit score is.

A borrower uses their vehicle as collateral in hope of acquiring bigger loans with more favorable terms.

Are You Qualified to Apply for a Secured Loan?

A secured loan has a very flexible criterion that sets them apart from other loan schemes. Borrowers need to meet the following in order to qualify for the loan.

• All applicants must be at least 18 years old
• All applicants must have a stable income into their personal bank account for the past 3 months
• All applicants must have an active phone number and email address
• The application will require 100 points of ID
• Online banking information must be presented during the application procedure

Approval Times of Secured Loan

Lending companies that offer secured loans do their best to update you with the result of your application as soon as possible. If you happen to apply during your normal AEST business hours, some lenders can get back to you in as fast as 60 minutes. If the entire application goes smoothly, you can have the money by the end of the day. Take note that inter-bank transfer times might have a tendency to bottleneck the speed at which the money enters your account. If you are planning to apply for a secured loan, make sure you prepare all of your personal documents in advance since this will accelerate your application procedure.

Perks of Applying for Secured Loan

When you apply for a secured loan, you can see to it that lenders will treat you with utmost customer service. This is because they abide by the standards of responsible lending, thus you can guarantee that they won’t take advantage of your financial incapacity. In fact, they will help you get back on your feet, so you can enjoy financial freedom.

How to Apply for Secured Loan

Once you made the decision that you will apply for a loan and use your car as collateral, here are the steps that you should undertake:

Step 1:

Scroll up to find the loan calculator. Choose the amount you want to borrow and the repayment period that you desire. Click ‘apply now’ and start your online application form.

Step 2:

Fill up the application form. Once you are done, the lenders will process everything and all you have to do is wait. They’ll get back to you with the result of the application after a few hours.

Step 3:

If your loan application is approved, the lending company will contact you. They will send you an agreement and you need to carefully review it before you sign. It is very important to familiarize yourself with any additional charges that you need to pay when you fail to repay the loan on time.

Step 4:

Once the lending company has your signed contract, they will transfer the money to your bank account. Take note that inter-bank transfer times might take a little longer compared to regular transactions.

When you’re looking at getting a loan, one of the numbers that lenders look at closely is your credit score. This score helps decide how much of a risk you might be when it comes to paying back the money you borrow. If you have a credit score of 600, you might wonder what kind of loans you can get and how they affect your score.

A good credit score is generally considered to be 670 or higher, by the way lenders and credit experts see it. But what if your score is around 600? You’re not alone. Many people find themselves in this spot, looking for options.

Loans for a 600 Credit Score

If your credit score is around 600, there are still loans available for you. These might not be the best rates, but they can help in a pinch. For example, personal loans can be a good option. They help you borrow money for almost any reason, like paying off debt or making a big purchase.

When you’re in need of quick cash, instant cash loans might catch your eye. They can provide the funds you need without a long wait, which can be super helpful in emergencies.

If you’re worried about your credit score being too low to even consider, there’s no credit check loans which might seem like a solution. However, remember, these often come with higher interest rates because they’re seen as riskier for lenders.

Impact of Loans on Your Credit Score

Now, let’s talk about how taking out loans affects your credit score. Getting a personal loan, for instance, might dip your score slightly because of the hard inquiry when you apply. But, if you make your payments on time, it can actually help improve your score over time by showing you can manage credit responsibly.

Payday loans, though, are a bit different. They can affect your credit score if you fail to pay them back, or if they’re reported to credit bureaus. These loans usually have very high interest rates, which can lead to a cycle of debt if not managed well.

When you’re in a rush and need funds fast, when applying for same day loans, consider how quickly you can pay them back to avoid this issue.

Remember, a great credit score (think 800 and above) is like gold in the lending world. You get the best rates and terms. But if you’re not there yet, don’t worry. Even with a 600 score, you can still secure loans. Just be aware of the terms, and always aim to improve your score by paying bills on time, reducing debt, and not applying for too much credit at once.

In summary, while a credit score of 600 might limit your loan options, it doesn’t shut the door. With careful management and understanding of how loans impact your credit, you can navigate this landscape and move towards financial stability. Always consider the long-term effects of any loan, especially how it might help or hinder your journey towards a better credit score.