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

ElitePersonalFinance
Last Update: December 18, 2020 Financial News Loans

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 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, 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.

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

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.

  • Try personal loans for bad credit. Many lenders 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 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.

  • 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 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.

  • 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 those with bad credit.

What About This 30% of The People Who Can’t Qualify for a Personal Loan?

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 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 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 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 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.

Source

MEET THE AUTHOR

ElitePersonalFinance

Recommended Articles

Debt

Best “Buy Now Pay Later” Companies with No Credit Check and Instant Approval 2021

EPF March 21, 2021

Buy Now Pay Later Companies is a new and high-growing type of lending, offering people to get goods and pay for them later. It definitely looks like a great option for many of us, but this also hides dangers for...

Debt

Best Buy Now Pay Later Apps and Sites 2021

EPF March 20, 2021

Buy Now Pay Later is a growing business. Most of you have heard of them. BNPL, Shop Now Pay Later Sites, Get Now Pay Later Apps, POS Financing - all of these means the same. You pay for goods now...


AS SEEN ON