Category: credit rating

Popularity of payday and installment loans

Payday loans are designed to cater to your ever need, so why wouldn’t they be popular? If you are in a fix and you need $1000 – $3000 money immediately, installment loans are the way to go. If your credit rating is not terribly reassuring, but you still need money, installment loans are your best option.

Maybe you have no idea where to go to get a fast loan. Just get online and find a local lender who uses usa payday loans and you are all set. They are so popular because they are exactly what many americans need to make it through to their next paycheck. USA lenders have designed a product perfect for those tight financial situations that people are more frequently encountering in this rough global economy. Payday loans are simple to receive. All one has to do is locate an application, fill it out, and submit it to the local lender. Within a short period of time it will be reviewed and evaluated. If the applicant meets all the eligibility requirements, that person will see the cash in their bank account within 24 hours of having submitted the application. Talk about fast cash. Typically, the loans can range from $80 to $1500. That means that your financial pickle can be relatively small, or fairly large, and you may still qualify for a payday loan. Who would not take advantage of that if given an opportunity?

There are several reasons why payday loans have made such a big impact on the USA working class. The application process takes only a couple minutes, there is no faxing, everything which transpires between the applicant and the lender is strictly confidential; and best of all, the money comes quickly because lenders compete for the business. Everyone is happy with a payday loan transaction. The main requirements to get a payday loan are that the applicant must be at least 18 years of age with a bank account that is at least six months old. Credit rating is not necessarily a significant factor in the application process. Many people with poor credit ratings have obtained a same day transfer payday loan. Usually it needs to be paid back within 2 to 4 weeks, but there are also payment plans which can lengthen the timeframe. The point is that it can help you make it to your next paycheck if certain bills need to be paid in the meantime.

 Loan Basics — Personal and Installment Loans

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Debt settlement is not always the best option

The situation is all too familiar for all of us. Unemployment is at its all-time high and credit scores are down. Since market values of homes are also down, the equity of homeowners has practically gone down drain. Under this prevailing condition, you have practically no safety net to settle all your obligations – mortgages, credit card debts and payday loans.

There are several options that you can consider to get out of this financial mess. You may start now by adjusting your budget and try to get out of your debt hole. Of course, you can opt for bankruptcy. But this is the last thing that you should do. You can also seek the help of your lender and work out an arrangement with them if they are offering some sort of a hardship program. Finally, you can seek the professional help of a debt settlement company.

There are varying opinions regarding the use of debt settlement as there are pros and cons when it comes to this option. It is important that you explore and understand the strengths and weaknesses of such option.

Debt settlement is a pretty simple financial tool that you can use if you are having some problems paying off your debts. The general concept of debt settlement is that you agree to pay a lump sum amount which is lesser than what you actually owe your lender and your debt is considered settled. For example, if you have a $5,000 loan with your bank and you agree to “settle” it by paying in full $3,000 then your debt with the bank is fully settled. Having done this, you must be aware that this transaction would entail a negative information that will be reflected in your credit report. Incidentally, this is one of its downsides.

Before you decide to engage the services of a debt settlement company, it is important that you are fully aware of what you are getting into. You must go beyond the “nice things” that you see on the adverts of debt settlement companies. Surely, there are several downsides that you have to take into account if you decide to avail of their services.

Your Credit Rating will suffer

This is the first thing that will happen once you decide to engage the services of a debt settlement company. As soon as you avail of their services, you will immediately be requested to stop making payments and cease all communications with your bank or lender. These default payments will be reported by your lender to the credit bureaus and the negative information will be reflected in your credit report. This information will remain in your credit report for the next seven years.

Your Lender will Engage the Services of a Third Party Collection Company

This will be considered as a separate collection event and will again be included in your credit report. Needless to say, this will remain your credit files for the next seven years. You will be advised by your debt settlement company to ignore them as well. And this is where your situation can really get serious.

You will get acquainted to a Process Server

A visit by a process server means that you have been sued by the debt collection agency for non-payment of your debt. This can lead to default judgment if you choose not to respond to the summons. Again, this will be reflected in your credit report and will remain there for the next seven years.

The Court will Issue a Writ of Sequestration

Now, this could only mean two things – seizure of your assets or garnishment of your salary. Either way, this information will again be reflected in your credit files in the next seven years.

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