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Over 70% of The People with Payday Loans Could Qualify for Refinance

EPF September 29, 2020

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 do this huge mistake!

First of all, let’s discuss the term low credit. What does that mean? Do you know that most of the people only think that their credit is not high enough? Many people still mis confuse the terms low credit history and bad credit. These are totally different things and all lenders treat them differently.

There are lenders who 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 these 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 there are many things that you could do.

See this graph:

From our personal experience over 70% of the people, who are with payday loans, could qualify for a better loan.

In order 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 of the people think that if they apply with multiple loan companies they will hurt their credit score. 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.

So, What These 70% of The People Could Do NOW?

To refinance their expensive loans instantly!

When they come to us and ask for a help, what we do is 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.

  • Try personal loans for bad credit. There are many lenders who approve people with low credit. If you apply with all personal loan companies and your credit score is not very bad, chances to get approved for refinancing are high.

Say that you have $1,000 payday loan. If approved, from a personal lender, you could set it for about $100 per month for a year which would make you repay the loan very easily.

  • Try alternative payday loans. These loans are more expensive, but most of them require you only to prove your income. Most of them even don’t check your credit score. Even if you are with very bad credit, the chances to qualify for refinancing are very high.

Say that you have $1,000 payday loan. An alternative payday loan would help you refinance it for about $200 per month for a year period of time.

  • Try cash apps. Cash apps offer a small amount of money, and most of them come with 0 interest fees. And they approve people with really bad credit. Where is the catch you’d ask? The catch is that most of these apps offer low amounts such as $100 to $500. And these that are with 0 interest fees require you a membership fee. These membership fees vary between $1 to $5 per month.
  • Try secured or cosigner loans. If you are with bad credit and low income, you have these options. Many lenders would agree to refinance you.
  • Try credit unions. Credit unions help to those with bad credit.

What about These 30% of The People Who can’t Qualify for a Personal Loan?

Unfortunately, there are people who wouldn’t be able to qualify for a personal loan even if they apply with many lenders. These are people with very bad credit or very low income or people with multiple loans.

These people should focus on getting out of their loans as soon as possible. Save money, find some ways to make money online, do everything possible till you get out of these loans.

Next action:

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 that he issued to you is illegal and you have to see what are your rights under the state law. State laws sometimes limit the amount, the APR, some ban rollovers.

If a lender is out or laws, you have to check your rights.

See what CFPB recommend you in these cases:

The Laws in Your State May Permit, Regulate, or Prohibit These Loans

Some states do not have payday lending because these loans are not permitted by the state’s law or because payday lenders have decided not to do to business at the interest rate and fees permitted in those states. In states that do permit or regulate payday lending, you may be able to find more information from your state regulator or state attorney general.

Source

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