Like many people, the recession hit me pretty hard. Thanks to a job loss, I got behind on some of my credit cards. Even though I did mange to make the mortgage payment every month, my credit rating nose-dived. While things did get better, I still wondered if it would be possible to refinance my mortgage with bad credit. After talking with a few lenders, I found out that my situation was not unique. I also found lenders who were willing to work with me. I managed to get terms that will save me money over the life of that mortgage. If your credit has taken a beating, don't assume that refinancing is out of the question. I'll share how I researched options and found a lender who offered a good deal. You could find that refinancing your mortgage is within your reach.
Payday loans are a great option for quickly obtaining money to handle unexpected financial emergencies. Paying off the loan can sometimes present challenges, though, and people are often tempted to forego making the requisite payments for a variety of reasons. However, here are three good reasons to make the effort to keep your loan account in good standing.
Some payday loan lenders have programs that reward customers for making their payments on time. These operate in a couple of ways but, in general, you'll earn points you can redeem for a variety of awards such as entries into contests with monetary rewards, lower loan fees, or faster approval times.
These points can help you pay off or lower the cost of your cash advance. For instance, earning enough points may help you eliminate the fee charged on your next loan, so all you'll have to pay back is the principal. You can use the money you save to pay down the loan, apply to other bills, or build up a rainy day fund that can help you weather future unexpected events.
Protect and Improve Credit
Although payday loan lenders don't conduct credit checks as part of the approval process, defaulting on a loan can have a negative impact on your credit score. If the account is sent to a collection agency, the agency will typically report the debt to the credit reporting companies, which will cause your score to drop. Additionally, some lenders might use an alternative type of credit reporting agency that tracks how people use payday loans. If the company reports negative information about your account to these agencies, you may have difficulty opening accounts with other payday advance companies.
So paying your loan on time can protect your credit. However, in some cases, handling your account responsibly can also improve your credit score. Some cash advance companies have developed programs to help customers transition to traditional loans. These companies use, among other things, your good track record with them to get you approved for a regular loan that typically has a much lower interest rate and reports to the three major credit bureaus. Being responsible with that loan can improve your credit and help you quality for better financial opportunities such as home ownership.
Maintain Access to Funding
According to the latest statistics, one-third of Americans do not have any money saved for emergencies. It can be challenging to save cash, especially if you have kids, a lot of debt, or limited employment opportunities. If you're in this situation, having access to payday loans can help you get through financially challenging times. For instance, if your car breaks down and you're between paychecks, you can get a temporary loan to fix the problem so you can continue going to work.
Many cash advance lenders will also increase your loan limit after a period of on-time payments as long as your income supports the higher amount. Though you may only qualify for $200 on your first loan, for example, you may be able to get up to $1,000 or more after building up a good track record with the company. This is enough to help take care of many unexpected expenses.
Making an effort to keep your payday loan account in good standing comes with many benefits. Life does happen, though. If you suffer a sudden job loss or other problems that may make it difficult to pay off your loan, it's important to contact your lender as soon as possible. Most companies will happily work with you to come up with a plan to get the loan paid so you can continue enjoying the benefits of being a good customer.
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8 April 2015