You are with relatively low credit. You don’t have enough money. You’ve heard that you can’t get a personal loan. And you go and get a payday loan.
A common scenario… You are not the only one who made this huge mistake!
First of all, let’s discuss the term low credit. What does that mean? Do you know that most people only think that their credit is not high enough? Many people still confuse the terms of low credit history and bad credit. These are totally different things, and all lenders treat them differently.
Some lenders treat low credit for something good. See, the fact that you have no credit lines is NOT a negative factor. It could mean that you didn’t have any financial problems for a long time.
Many people are not with bad credit at all. And those that are with bad credit still don’t know that they could qualify for a cheaper loan.
These people don’t like to waste time applying with many lenders, and they go the easy way.
Every day we receive questions from people with bad credit who are with payday loans. And some of them are already in a debt cycle, sadly! And the messages that we receive are very sad!
Financial mistakes cost you money! And when we talk about financial mistakes related to people with bad credit, the losses could be huge!
We are here to tell you that even if you are with bad credit, you could do many things.
See this graph:
From our personal experience, over 70% of the people with payday loans could qualify for a better loan.
To achieve this, you have to do a few things. And the first and most important is to shop around!
Our personal analysis shows another interesting thing: it seems that most of the people who end up with payday loans don’t do the most important thing – to shop around.
We ask them why? They said they knew that they had to do this, but they haven’t!
That’s the truth. Many people know that they had to do this and that, but they haven’t done it.
Another interesting thing that we see is that most people think that they will hurt their credit score if they apply with multiple loan companies. That’s not true!
Almost all legit lenders perform a soft credit check. This doesn’t lower your credit at all. You can apply with 100 lenders, and your credit score wouldn’t be affected at all.
To refinance their expensive loans instantly!
When they come to us and ask for help, we recommend them to apply with many lenders. And it works! If you are with not-so-low credit, you can qualify for refinancing now!
Here is a quick guide on what should people who are with payday loans could do.
Say that you have a $1,000 payday loan. If approved by a personal lender, you could set it for about $100 per month for a year, which would make you repay the loan very easily.
Say that you have a $1,000 payday loan. An alternative payday loan would help you refinance it for about $200 per month for a year period of time.
Unfortunately, some people wouldn’t qualify for a personal loan even if they apply with many lenders. These are people with very bad credit or meager income or people with multiple loans.
These people should focus on getting out of their loans as soon as possible. Save money, find ways to make money online, and do everything possible until you get out of these loans.
See whether the loan that you have is legal at all? Do you know that many states ban payday loans at all, and some of them regulate them strictly? If a lender doesn’t meet the law criteria, then the loan he issued to you is illegal, and you have to see what your rights are under the state law. State laws sometimes limit the amount, the APR, some ban rollovers.
If a lender is out of the law, you have to check your rights.
See what CFPB recommend you in these cases:
Some states do not have payday lending because the state’s law does not permit these loans or because payday lenders have decided not to do business at the interest rate and fees permitted in those states. In states that permit or regulate payday lending, you may be able to find more information from your state regulator or state attorney general.