Payday Loans Congress | Chosen articles from the main event

Tips for Obtaining Secured Loans with Poor Credit

Posted on June 26, 2020May 28, 2020 by congres2020

Everyone knows that obtaining secured loans with poor credit is harder than if you have a good credit history.

While it is best to clear derogatory credit and take steps to improve FICO scores, there are times when obtaining a loan is an absolute necessity.

With a little research and determination, borrowers can locate bad credit lenders willing to give them another chance.

Secured loans utilize some type of collateral to secure the debt. Collateral can include houses, vacant land, automobiles, watercraft, or business assets such as physical buildings or business equipment.

Some bad credit lenders will require borrowers to obtain a co-signer, while others will use the asset as financial security.

Before applying for any type of loan, borrowers should review their credit reports from each of the three major credit reporting bureaus.

These include: Trans Union, Equifax, and Experian. In addition to reviewing credit scores, lenders also look at borrowers’ income to debt ratio, past due payments, delinquent accounts, written-off accounts, bankruptcy filings, and the number of hard inquiries.

Every time debtors apply for credit a hard inquiry is reported and remains on credit reports for two years. The higher number of hard inquiries, the less likely a lender will approve a loan application. Debtors should strive to keep hard inquiries to a maximum of three per year.

Individual borrowers can obtain a free copy of their credit report each year through AnnualCreditReport.com. This company does not require individuals to subscribe to a monthly monitoring service or pay fees to access their credit reports.

Debtors with bad credit typically have a better chance of obtaining approval for secured loans than unsecured loans. Since secured loans are backed with collateral, creditors can repossess assets if borrowers default on the loan. Assets are sold to pay off the outstanding balance and obtain a judgment or creditor lien if selling the asset does not cover the full amount.

Individuals who have filed bankruptcy, lost their home to foreclosure, or entered into a deed in lieu or short sale agreement, may find it nearly impossible to obtain secured loans through conventional banks or credit unions.

One option for unqualified borrowers is to obtain financing through a hard money lender. Hard money loans are sometimes used when borrowers with bad credit want to buy a house. Hard money lender real estate loans can be obtained through private investors or investment groups.

Hard money loans are not cheap. Most investors require borrowers to submit a down payment of 40-percent or more and charge interest rates upwards of 25-percent. Borrowers should strive to refinance mortgages through a conventional mortgage lender within one to two years.

Debtors with poor credit who need to buy a car should investigate ‘buy here, pay here’ car dealerships. This type of secured loan usually requires borrowers to provide a down payment of 20-percent or more and submit payments on a weekly or bi-monthly basis.

Careful consideration should be given to ‘buy here, pay here’ secured loan contracts. These car dealers typically charge poor credit buyers higher prices for the automobile, along with high interest rates.

Borrowers often owe more than the car is worth, making it difficult to sell at a later time. On the flip side, ‘buy here, pay here’ secured loans can help debtors establish or repair their credit.

The Internet is a good resource for comparison shopping secured loans for people with bad credit. Always read the fine print of loan contracts, ask plenty of questions, and calculate the true cost of the intended purchase.

Otherwise, entering into bad credit secured loans could cause further damage to your credit and lead to repossession of the purchased property.…

Financial Relaxation with Payday Loans

Posted on May 28, 2020May 28, 2020 by congres2020

Gain access to fast and secure funds by applying for a payday loan online.

If you are short on money to cover for rent or utility bills that need to be paid right away, the best solution for these is to simply apply for a payday loan.

It is undeniable that payday loans have made it possible for many borrowers to get out of tough and tight financial situations.

Also called cash advances, payday loans offer fast and reliable access to instant cash in times when you need it the most.

Top Five Advantages of Applying For Payday Loans Online

Although payday lenders offer payday through their brick and mortar stores, the most convenient way to apply for a payday loan is through the Internet.

Getting that much-needed cash immediately is made more convenient as borrowers can simply log online to apply for a loan.

Here is a list of added benefits when applying for payday loans online:

1. Easy to fill-up application forms

There’s no need for you to download an application form!

When you decide to request a payday loan online, all you need to do is type in all the needed information on your screen.

Online forms for payday loan applications are pretty much simple and straightforward. Be sure to fill all the spaces with accurate and honest information, as fraud may lead to rejection of loan requests.

After you’re done filling up the application form, all you need to do is send it and wait for the lender’s call to confirm the acceptance of the loan request.

Lenders will also be calling upon approval! You don’t need to do anything once you are done sending your application, as payday loan lenders will work on your request right and approve of your online loan request right away.

2. No credit checks

Individuals with bad credit or poor credit history can find financial relief in payday loans.

Lenders do not perform credit checks on applicants. Regardless of credit status, anyone with a regular job or with a stable source of income can take advantage of payday loans.

Those with no credit history can also apply and get approved of payday loans.

This means that young individuals who are employed for three months or more can get approved of instant cash even without a credit history.

3. Fast loan approval

The majority of online payday companies are known to approve loan requests in minutes.

Applicants need not wait for more than two days as payday loan lenders process applications in a faster and more efficient manner compared to traditional loan lenders.

The online application also makes it easy for lenders to verify, authenticate, and approve loans.

Since applicants are required to provide their checking account or savings account information during the application, the loan amount will be wired immediately minutes after approval.

4. Flexible payment options

You can arrange a repayment plan once you are approved of a payday loan. Lenders normally give a grace period of 15 to 45 days to creditors.

Borrowers who still need extra time to pay the loan amount can contact their lenders to ask for an extension. There are lenders who will extend the due date without charging for late fees and penalty charges.

There are also lenders who give out incentives such as discounted interest rates or loan fees to those who decide to pay what they owe before the due date.

The flexibility of payday loans makes it the best solution among individuals who need immediate cash in between paydays.

5. Faxless payday loans

The majority of loan applications are done online. Traditional lenders often require borrowers to send out documentation via fax, thus resulting in slower processing and approval.

With payday loans, all you need to provide lenders are proof of employment, pay stubs, and your checking account. Borrowers can simply scan these requirements for faster and efficient processing.

How much will you receive from payday loans?

On average, borrowers request for $500 loan amount. Most lenders are willing to loan up to $1,500. The loan amount that a borrower may receive from lenders depends on these two factors:

Borrower’s monthly income
History of loan requests and approval from the same payday lender

Although payday lenders are willing to lend up to $1,000, borrowers are advised not to request for too much than what they can actually pay for during their payday.

Late fees and charges will be applied to the current loan amount if you fail to post your payment on time.

Lenders do not ask the reason for borrowers for taking out a payday loan. Provided that a borrower submits proof of employment, an application request will most likely get approved within 24 to 48 hours.

Eligibility criteria

A potential borrower should be employed or own a business that brings in regular income
Proof of US citizenship
Checking account or savings account information

Once you have presented these requirements and have been approved, your requested loan amount will be wired to you within 24 hours.

Lenders will either call you to inform you of the approval or send you an approval letter through email instead.

With payday loans, you will never have to worry about an urgent financial crisis again.

Clearly, requesting for instant cash through payday lending is the easiest and most convenient when furnished and completed online!…

Complete Guide To Repaying Student Loans

Posted on March 25, 2020May 28, 2020 by congres2020

Millions of students take out student loans each year in order to pay for their education.

Likewise, a majority of them do not think much about repaying these loans until their deferment ends 6 months after they graduate.

At that point, they then realize that their loans have accrued plenty of interest and repaying the loans will be more difficult than they previously thought.

This happens to thousands of students each year, but there is a simple way to pay off student loans without allowing interest to accrue over the course of your college education.

Step 1: Make some form of payment on your loans regularly while still in school

The only loans that do not accrue interest while a student is in school are the subsidized Stafford loans because the government takes care of it.

Therefore, a student should be very aware of how much interest a loan can gain over the course of 4 years – the price can be anywhere from hundreds of dollars to a few thousand. Making payments while still in school is a great idea for students because…

A) You aren’t obligated to make payments, but you can pay off any amount of a loan at any time.
B) You can pay off just the accrued interest or a little bit more to slowly reduce your loan.
C) If you choose to pay some of the loans off now, your payments will be much easier to handle later.

Without a doubt, paying off interest (at the minimum) will help any student when the time comes to make monthly payments. It might not be plausible for every student, but paying even more than monthly interest is extremely smart.

A student could pay off a few hundred dollars on a $5,000 loan each year, and the loan could be reduced to less than $3,500 when it comes time to make payments.

Step 2: Compare your options when the loans need to be repaid

Some loans – but not all – have a fixed $50.00 monthly payment. As an example, this is how the Stafford loan works.

Most loans, however, have a different monthly payment requirement, which can be much higher. Luckily, there are a few ways a student can change their minimum monthly payments for student loans, such as:

A) There are various repayment options for federal student loans, such as the option that bases monthly payments upon a student’s income.
B) Loan consolidation won’t reduce the principal balance on a loan, but it will lower monthly payments and give the loan a fixed interest rate.
C) You can and should negotiate with the loan company if you need a different monthly payment.

Obviously, having a monthly payment based upon your income is extremely convenient, but this only works for federal student loans. People with other loans, however, should consider loan consolidation because it combines all of a student’s loans with a set interest rate and a lower monthly payment than the one they had before.

Unfortunately, negotiation is an option that may not always work, since the provider has no obligation to change the loan repayment terms, but it is worth a try for students.

Step 3: Figure out how you will pay your student loans back

The money with which a student pays back their loans differs from person to person. Of course, most students will simply use their paychecks to take care of loan payments.

Some students – on the other hand – have other forms of income with which they can repay loans. The best ways to take care of loan payments with funds from sources other than jobs include:

Money from selling old items that you no longer use.
Money earned from doing a side job.
Money from family members that you receive for whatever reason.
Plenty of others.

Step 4: Make sure to set aside the money to repay your loans with

It might be an obvious statement, but many students don’t think about their loans once they have to repay them, so they end up lacking the money to make their payments each month.

Therefore, it’s smart to always have a reminder in place for you so that you make your loan payments on time because the consequences of not doing so are pretty severe.

The reminder should always list your monthly due date and the amount you intend to pay that month. It also helps if you set aside the money for the loan by either withdrawing it from your checking account beforehand or simply sending in the payment a few days early.

Repaying student loans is a very simple process, but it involves some financial skills. When a student first takes out the loan, they usually won’t think of the implications they’ll face if they just let the loans accrue tons of interest over the years.

In the following years, they’ll see that their loan balances are huge and that it will take them years to repay the money.

Paying off slightly more than the monthly interest on the loans while still in school will help any student to reduce their loan balance.

By the time they graduate and must repay their loans, they will find that they can pay them off quickly and efficiently without spending a ton of extra money on interest charges.

Those that are repaying the loans currently will find that they should try to use different sources of money to repay their loans.

Also, a person should consolidate their loans or change payment plans in order to reduce monthly payments if they are too high. Negotiation with the loan company is possible, but it should be a last resort.

As for actually making the monthly payments, every student should be careful to make sure that they have enough money to make their payments and still take care of other expenses. Many students fail to do this and they end up in trouble each month.…

Approaching a Bank for a Small Business Loan: 6 Critical Steps

Posted on January 20, 2020May 28, 2020 by congres2020

The days of walking into a bank branch, answering a few questions about your business, and be notified within 24 hours of a loan decision are gone.

Bankers are under pressure to analyze each business loan in detail and evaluate the risk of both the business and the owners in a rigorous and comprehensive manner.

During the height of irresponsible lending, bankers were “selling” loans, with more focus on getting the deal closed than understanding the nature of the request.

The pendulum has now swung the other direction. As the small business owner, you must “sell” your business and its capability to repay the loan to the bank. Banks are declining loans even for well established and profitable companies.

For this reason, it is important that you prepare. Following these steps will not guarantee approval, but it should guaranty you the respect and the full consideration of your loan officer:

1. Find a competent banker:

While not all banks are the same, they do have similar credit policies, and your best ally is a banker who understands your business and believes in your creditworthiness.

If you do not already have a strong relationship with a bank, ask other businesses in a similar industry for a referral. If you are a member of a Chamber of Commerce or networking group, ask someone for a referral.

Ask the banker if he or she has worked with companies in your industry before. If he or she does not ask you any specific and detailed questions about your business, this is a good indication that he or she either has no interest in your business or he or she is inexperienced.

2. Have a full financial package ready:

You do not have to submit your financials to every banker you meet with, but the fact that you have a full package prepared in a professional format is an indication of your character, one of the C’s of credit.

A full financial package should include at least the past two years tax returns for both the company and the owners, current year to the date income statement and balance sheet, a personal financial statement, and any other relevant information such as an equipment invoice accounts receivable aging report, or a contractor’s estimate.

3. Be prepared personally:

In today’s credit environment, a personal guaranty of any significant owners (usually any owner of more than 20%) is practically a non-negotiable part of any loan application.

In addition to a personal guaranty, the bank may ask to secure a loan with any equity you have in your home.

While your ability to avoid this will depend on the strength of your business, be prepared for it to come up in a discussion with the bank. Also, try to pay down any personal revolving debt including home equity lines of credit and credit cards.

Watch this to learn more:

4. Know your credit scores:

As the owner of the business, you should get your FICO score prior to applying for any loan. If your score is less than 700, or you have any defaults, collections, etc., be prepared to explain your situation.

If your personal credit score is less than 650, it will be extremely difficult to get your loan approved and you should work on improving your credit prior to the application if possible.

Most people are unaware that their business has a credit rating also.

Many banks use Dun & Bradstreet for their small business credit report or Equifax for their Small Business Financial Exchange (SBFE) score. If possible, check the accuracy of this information prior to your application and address any weaknesses in your business credit.

5. Bring it all to the table:

Banks make money in myriad ways. If you make it clear to your bank that you intend on building a long term relationship, they will be more inclined to take a second look at your loan.

Let your banker know that if he or she can come back to you with an approval and favorable terms, then you will be prepared to provide them additional business including any business or personal deposit accounts at other banks, merchant services (credit card processing), payroll services, and best of all – referrals to other businesses in the area.

6. Understand that cash is king:

While it is important to have collateral, good credit scores, personal net worth, profitability, and a good balance sheet, the first qualification for any small business loan is satisfactory cash flow. Banks have their own formula for Debt Service Coverage.

This basically means that you have enough cash coming in based upon your history to pay back any existing obligations plus the new loan.

Banks not only want you to have enough cash, but they want you to have extra cash. Cash is often called the blood of the business and it will also make or break any loan request, regardless of the other factors.

There are many other factors that may affect your application for a business loan such as industry, time in business, and the specific nature of the request. These six steps are not comprehensive, but you can at least feel confident that your bank will take you seriously.

These are difficult times for small businesses trying to obtain financing and even some of the best businesses will receive a decline for a loan. If you are prepared, your banker may be willing to go the extra mile for you in getting an approval or reconsideration.…