Month: September 2017
A bad credit score is a like a bad smell; it lingers on and on and on. A low credit impacts virtually every sector of life. It can cause problems when it comes to renting a home, buying a new car or even getting an electricity connection. It haunts you. Sadly, life is not easy. Emergencies and bad situations arise at every corner. They require financial backup. For people who live paycheck to paycheck, this can be hard. If they have bad credit, it becomes even more challenging. One can apply now for payday loans, but there were times when the only way out was a traditional bank loan.
Before applying for a cash advance, in the event disaster strikes, there are some steps every person should take. This first is to reduce and manage debt as much as possible. Go on www.debt.org to get great tips on how to do it. The second step is to know your credit score. Assuming that your credit is bad is foolhardy. Calculation of credit is complicated. It is not based on a single factor. Therefore, a layman cannot correctly know his or her score.
The best way to find your credit score is to request a report from firms like Dun and Bradstreet, Equifax and Centrix. The application does not cost a penny. A fee needs to be paid if you only need the report immediately. Check the report once it is received, if there are any discrepancies ask them to be corrected. The chances are that the probability of you getting a conventional bank loan is higher than you thought. The third step is to make sure that a person is not “seen” as high-risk by banks.
Sometimes, inadvertently, we take some steps that mark us as high-risk individuals even though we pay our debts on time. For example, thinking that you have paid a bill in entirety when there is a balance amount left. Another instance could be continuously delaying bill payments because you are forgetful. All these things make banks and credit unions think that you will not be able to repay the loan either on time or in full.
It is past behavior that marks are credit score. It is just not enough to repay the loans on time; it is small things like paying the utility bills before the deadline that make us high-risk or low-risk borrowers. Think of it like this – if there is a friend who borrows money all the time, from everyone and is always forgetting to pay it back. Would you be comfortable lending the friend money? Banks think in the same manner.
After taking all three steps, if you are still in need of cash a payday loan is the easiest option. Cash advances are easy to get, they tide you over in case of emergency and are not contingent upon the credit score. They help you fix a situation quickly and remove the debt as fast as possible due to their short repayment period.