5 Things to Do Before Deciding That You Can’t Qualify for Short Term Loans
A financial situation has developed and you need cash to take care of it. The only problem is that you’re convinced that no lender would ever work with you. The fact is that you may be surprised to learn that there are several lenders who would seriously consider your application. As you begin the process to find out if you qualify for short term loans, it pays to do a little sleuthing on the front end.
Uses these five tips and you could be on the way to getting the funds needed to cover your situation.
Check Your Credit Scores
Right now, you’re making assumptions about your credit scores. Order copies of both reports and see where you currently stand.
Many people find that their scores are slightly better than they thought.
Once you know what those scores happen to be, it will be a lot easier to identify lenders who have loan options designed for people with similar scores.
And The Most Recent Comments
While you’re looking over your credit scores, take a good look at the most recent comments submitted by current or past creditors.
Pay close attention to the comments submitted in the last year or two.
Your goal is to know what each creditor has submitted in terms of comments that relate to making payments on time, payments that were made late, and any other random comments that have to do with how you manage your obligations.
Why does this matter? Your credit score may be lower because of something that happened a few years ago.
Over that last 24 months, all of the comments submitted by your creditors happen to be positive.
That’s a key factor since many bad credit loan lenders are more interested in how applicants are doing now rather than what happened way back when.
Even if your score is lower, those recent positive comments could improve the odds of being approved.
What if you do have one or two negative comments from the last year or so? By knowing what the potential lender will see on those reports, you’re in a position to explain the circumstances surrounding those events.
Depending on how the lender reacts to your explanations, those comments may not carry as much weight as you expected.
Get an Idea of the Minimum Monthly Income That the Lender Requires
Lenders do require applicants to generate a minimum amount of income per month.
The reason for that is simple: the lender wants to make sure you have enough money coming in to make the short term loans payment on time.
Many lenders will provide that figure upon request. Some even have that amount posted on their websites along with the application form.
By verifying how much monthly income is considered the minimum, you can quickly identify lenders who are more likely to approve an application.
This one action item will save quite a bit of time since you are only approaching lenders who will take the applications seriously.
Check the Interest Rates
There’s a myth going around that people with less than perfect credit are stuck with unreasonable interest rates.
It’s true that you will likely pay more interest than someone who has excellent credit but doesn’t assume there is no competition among lenders.
Even with damaged credit, you could find that one lender offers a rate that’s lower than the next.
Do make sure you know how that interest rate is applied to the balance and project what you would ultimately pay in the way of interest, finance, charges, and other basics.
Doing so will help you find a deal that’s a little better than the rest.
Remember That You Have Alternatives
Above all, get yourself out of the mindset that the only lenders who will work with you are those who offer payday loans.
While there are situations where this approach is the most practical, you owe it to yourself to consider every payday loan alternative way to pay off your debts before going that route.
In many instances, a short-term loan that allows more time to settle the balance and comes with a set payment schedule will be best.
Remember that your goal is to take care of the financial need while avoiding any entanglement with a financing option that could cause trouble in the future.
Do talk with lenders who offer short term loans for people with poor credit.
You might be surprised at how many are willing to provide the funding and offer terms that you can manage with ease.
Category: Loans
