Financial Security Thanks To Good Credit Score
Even though credit score is not necessarily associated with financial security it’s hard to underestimate it’s impact on the state of household budget in case of sudden financial crisis. The bitter truth however is that most of us do not really pay attention to credit scoring and don’t bother monitoring credit history until the disaster strikes and the precious low interest credit facilities are no longer available.
What options does good credit score give you in case of bad financial situation? Quite a few, actually. First of all in order to have a good credit score you’re most likely than not on good terms with your bank which in turn means that extending the overdraft limit should not be difficult even if you’re temporarily unemployed. Decent credit score will also help you with credit card application which may become your best friend when unexpected expenses seem to pile up and cash evaporates just too quickly. Lastly, good credit score enables you to perform advanced financial operations such as remortgaging your property with equity release, freeing up money in the process.
How to make sure credit score is up to scratch and ready when you need it? Many credit repair companies will claim that their ‘secret techniques’ to improving credit history are incredibly innovative but the truth is that most people can repair their credit score given enough time and the basic instructions. Unless you’re knee deep in debt improving your score for the sake of financial security should be fairly simple and mostly based on common sense – pay your bills on time, don’t use too much of the available credit facilities and make regular credit card repayments.
The less obvious actions which will see your credit score rise are registering for electoral roll, taking out minor loans and repaying them on time and getting married (just in case anyone would like to take the vows to improve their credit rating).
Is it better to use savings or use the credit facility? A question without an easy answer since the amount of savings and their purpose depends largely on the saver’s lifestyle. People who choose to live as independently as possible will probably move their savings first in an attempt to avoid dependency on lenders. While certainly plausible, such decision may not necessarily be in that person’s best interest – perhaps using a low interest loan would create a convenient and secure buffer just in case some more financial problems were on the way.
Payday Loan Laws You Should Know About
The payday loan business remains highly controversial because it is often seen as a form of predatory lending. Payday lenders extend financing to those who do not qualify for most loan options. These individuals are often desperate, and lenders can take advantage by assessing high fees and financing charges. Without options, the borrowers are forced to take the loans, and many of them end up in debt cycles that go on for years without resolution. If you are in a payday loan situation, you should be aware of legal regulation that can protect you from predatory lending and get you out of your debts.
The first thing to understand is that payday loan laws exist on the state level and not the federal level. Some states have outlawed the practice all together. Other states set credit check requirements on payday loans. Some refuse cash advance practices. You will need to check with the laws of your state to learn how payday loans are handled. There are some regulations that exist across the board, though, to protect you in the majority of states in the country.
First, federal law mandates that all fees associated with a loan be disclosed up front. This is mandated in the Truth in Lending Act, and no lender can assess a fee he or she has not previously presented to you. This applies to late fees or finance charges. If a payday lender attempts to charge a fee from you for a late payment, you can search your contract to see if the fee was disclosed. If not, you do not have a legal obligation to repay the debt. You can dispute this fee if the lender tries to recover from you; lenders will usually back down if they know you are informed with the knowledge the fee is illegal.
Caps on Interest Rate
Generally, lenders have a right to charge the interest rate they see fit based on the risk associated with a loan. However, some states have chosen to place caps on this amount so that borrowers are protected. For example, California sets a 15 percent cap on cash advance fees. Other states eliminate the possibility a lender can compound interest on fees not paid by a given date. These laws are designed to keep payday lenders from profiting off a borrower’s inability to seek an alternate loan option.
Prevention of Additional Debts
Payday lenders use recurring debts to trap borrowers in debt cycles. They offer to extend one loan to pay off another, often running a debt account for a borrower up to very high sums. This means the borrower has to continually add to the account just to “stay current” on the loan sum. A few states prohibit payday lenders from issuing a debt to a borrower if the borrower has an outstanding active debt on file. So, the lender could not entice the borrower to pay off one debt with another loan from them. If your lender broke this law, you may be able to have the debt forgiven or even receive repayment on interest you have paid thus far.
The Basics of Payday Loans
We really don’t need anyone to tell us that life is uncertain. No matter who you are, or what your job situation is, there is a good chance that at one point or another, you’ll find that you have an emergency situation of one sort or another to deal with and that your cash supply simply isn’t up to it. Perhaps you are switching between jobs and the pay schedules are conflicting and mean that you won’t get paid for a week longer than you can deal with, or maybe you’ve discovered that there is some medication that you need to buy. In any case, you’ll find that you need a solution, and you’ll find that payday loans can give you exactly that.
Though there are several different varieties and several different ways that you can get a payday loan, they are actually quite simple and straightforward. A payday loan is essentially a short-term loan that will cover a small amount, usually no more than eight hundred dollars or so, and it is borrowed against your next pay check. They are also known as paycheck advances or pay dance advances, and they are usually offered on a two week term with an interest rate of 390 to 790 percent APR. While this seems high compared to a regular lending institution, you’ll find that one of the best things that a payday loan can offer you is speed.
The speed with which a payday loan can come through is something that a more standard lending organization, that deals with larger amounts of cash and longer terms to pay them off, cannot. You’ll find that for many payday loan lenders that there is no problem with getting you a loan that can come through in just two days or even less than 24 hours. Many payday loan lenders will have very loose standards as to who can borrow money from them, and if you are in an emergency situation, you’ll find that this is quite important. This cash advance system, where the money can be handed over or popped into your account is very important for the people who use them.
If you find that you need a payday loan, the first thing that you need to do is learn where you want to get it from. While there are probably several payday loan lenders in your area that you can reach very easily, you should be aware of the fact that they can be found very easily online as well, and this is where many people use them. When you look up a payday loan organization online, you’ll be able to get their rates right away, no matter what time of day or night it is, and you’ll also be able to see what kind of rates you can get; many sites will also include a rate and interest generator there for your convenience. Take some time to find out what you can afford, what you need, and what you will be able to pay off.
One of the reasons that payday loan organizations can charge as much interest as they do is because they work with such small amounts of money (comparatively) and because they have such a quick turn-around time. Whenever you start working with a lending organization, you should always sit down with a calculator and a pencil and figure out exactly what your situation is. Figure out what you need and what you need to have and how soon you can pay it back. Remember that these loans rely on you being able to pay them off in a very quick and timely manner!
If you are looking for a good way to pay off an emergency, or you have an event that you need to consider getting some cash in hand for, take a look at what a payday loan can do for you. There are many advantages that you can get when you look to get a good payday advance so make sure that you don’t close this option off to yourself. Many people learn about what a payday loan can do for them and they often find that it proves to be an excellent solution to their problems. Take a look and see what a payday loan can do for you today!