An instant payday loan becomes necessary when an individual has missed or made late payments on one or more credit agreements. Creditors will report any indiscretions to the leading credit reference agencies (Experian, Equifax and TransUnion) which can mean that a number of borrowers are no longer eligible for mainstream lending products. A bad credit rating loan is a source of short-term borrowing for an individual seeking to avoid credit scoring. It is possible to renew the loan at the end of the term, but it isn’t a recommended long-term loan.
Instant Payday Loan Eligibility Criteria
As already alluded to above, eligibility for payday cash loans isn’t a result of credit scoring. The decision will be based on a simple checklist rather than the individual’s repayment history. The borrower should be a U.S. citizen, at least 18 years old, have a full-time job, a valid checking account and be able to provide two forms of photo identification. Comply with these criteria and a bad credit rating loan is guaranteed for all applicants.
How Payday Cash Loans Work
The borrower provides a post-dated check (equivalent to the principal and any accumulated interest) which coincides with the date the individual is paid. The cost of borrowing is normally $20 to $25 per month for each $100. Although the loan will only last for a full calendar month, those who qualify will be able to borrow money with bad credit in just 15 to 20 minutes. The application process is very straight-forward.
Instant Payday Loans and Affordability
A very bad credit loan without credit scoring will always be more expensive than a conventional loan. No bank will offer an unsecured small loan as it would be deemed too great a risk. Consequently, a customer who wishes to borrow $500 will repay about $600 to $625 just 30 days later. Anyone who borrows money at this rate of interest must have a way of bridging the monetary shortfall (via a bonus or by working over-time) the month afterwards.
Alternatives to Adverse Credit Loans
Whilst an instant payday loan could provide the answer to a short-term borrowing need, they aren’t suitable for everyone. Those who are not in full-time employment will be rejected, but may be able to get a pawn shop loan if able to provide suitable collateral. A very bad credit loan is not appropriate for debt consolidation. However, those who are struggling to keep-up with repayments on various unsecured credit obligations may be able to clear debt with debt settlement program or debt management plan.
Once you’ve finished studying, your student loan payments begin, and you may find yourself in economic trouble. There is no financial aid for paying back student loans, so what can you do to make your payments?
While there is no financial aid available for student loan payments, the government and private lenders can help accommodate your loan payment in other ways.
There are ways to hold off on consolidating your student loans if you’re having temporary financial problems. Payment of Stafford student loans can be deferred, as can some private loans, and you can also forbear payment at the lender’s discretion. Deferments are granted if you decide to keep studying, if you are unemployed, or due to economic hardship.
Deferment allows you to pay just the interest on your loan, or pay nothing during the deferment period and add the interest to the capital, later paying interest on an amount which includes the interest accumulated. If you have a need-based subsidized federal loan, if your financial situation allows you to defer your loan you will not have to pay interest. This is similar to a form of financial aid during the loan repayment period.
Forbearance of a loan generally gives you a twelve-month respite in loan payment during which interest will always accumulate. Lenders will only allow forbearance in extreme cases, if ever.
The consequences of defaulting on a student loan can include money being taken directly from your paycheck, tax returns being withheld, and you will be ineligible for further financial aid or certain social security services. If you have a professional license, it can be suspended until payments are met or revoked.
Before defaulting on a loan, consider consolidation. Private lenders and the Department of Education offer consolidation loans to extend your payment plan and lower your monthly expenses.
Consolidation is a good way to reduce your current financial burden due to student loan debts, and consolidation gives you access to different payment plans. You can switch between these plans to meet your financial needs.
Consolidated loans will generally have a higher total payment, but it will be spread over time with low monthly payments for up to about 30 years. You can opt for a shorter-term plan with higher monthly payments if your financial situation permits. Graduated plans offer lower payments now and periodic payment increases, giving you a chance to change your economic situation.
Income-based plans allow you to pay off your debt as you can; your income, household size, and expenses are taken into account when determining your payment. If you are below the poverty line, you do not have to pay. This is the only way to end up paying less than your overall loan in the end, but the downside is that you will have to make up for lost time with a certain percentage of your income if your financial situation ever improves.
Private lenders and the Department of Education do what they can to make it possible to pay back your student loans, although financial aid for paying back student loans does not exist.