Do you have bad credit? Do you need a loan? Trying to convince a lender to let you borrow money could be very difficult.
Almost all lenders will check an applicant’s credit report before approving a loan. Lenders are looking for red flags like multiple late payments, high debt-to-credit ratio, numerous recent credit inquiries, collections, bankruptcies, and foreclosures. All of these things can lower your credit score and scare off lenders.
A bad credit score is anything under 650. No matter what your credit score is there are times in life when a loan is needed to make a big purchase or cover the cost of emergency expenses. Here’s what you can do if you find yourself needing a loan when your credit score is low.
How to Get a Loan With Bad Credit
Getting a loan with bad credit may be hard, but it’s not impossible. There are bad credit payday loan alternatives you can get, which may be the easiest option. With a payday loan alternative, you’ll get the advantage of repaying the loan in installments, but a good credit score isn’t usually required. Typically, all you need is proof that you’re at least 18 years old, have a steady income and a bank account.
Payday loans are also available, but they are much riskier. With a payday loan, the total amount is due on your next payday. If you can’t pay the loan in full you’ll be hit with exorbitant interest rates that dramatically increases the cost of the loan. The payday loan timeline will increase and it’s easy to get stuck in a cycle of debt.
If you are able to get a loan through a traditional lender there’s a good chance the terms won’t be the best. Because lenders see applicants with bad credit as a risk you may have to jump through additional hoops. A lender may require:
- Higher interest rate
- Higher down payment
- Co-signer with good credit on the loan
- Collateral to secure the loan
All of these things will make the loan more expensive upfront and over the life of the loan.
How to Fix Your Credit for the Future
If you have bad credit the time to start fixing it is now. Mishaps will stay on your credit report for seven years, but your credit score is always changing. There are easy steps you can take and tools for credit repair.
When your credit is low because of extremely high debt, you may need to seek the help of professionals. A debt management company works to help you get better repayment terms and helps you get your finances on track. It’s a great option if you don’t know where to start and need guidance.
Make All Payments on Time
It’s also very important to make all of your payments on time. Whenever possible set your accounts on autopay out of a bank account so that you never miss a payment.
Pay Down Dents With the Snowball Method
Put a lot of attention on paying down debts. A good strategy is to use the snowball method. With the snowball method, you work on paying off the smallest debt first, which should be the quickest debt to pay off. You’ll then have one less bill to worry about and less interest to pay each month. Move on to the next highest debt and keep going. Remember, you still need to pay the minimum for each account.
Another way to save money while paying down debt is consolidation. This means moving an outstanding balance on a high-interest account to a credit card or loan with a lower interest rate. Your credit card company may even offer special 0% interest deals on transfers for a short period.
Stop Using Credit
If you continue to use credit cards you won’t lower your debt-to-credit ratio. Do your best to stop using all credit cards. Start by cutting back or eliminating discretionary spending. You may also want to pick up a side gig like Uber or Lyft driving to increase your income so credit cards aren’t necessary.
Worried About Starting a Family? Here Are a Few Financial Tips That Could Help
Anyone can start a family, but not everyone can keep their family happy.
From making residential choices to taking budgeting decisions, there are a number of things that you will need to consider on an ongoing basis if you want to ensure that the partner or the young lives you brought to this world get to live a life that they deserve.
You want to give the very best life for you and your loved ones.
For many, the concept of “managing” so many aspects not only for themselves but for a number of other people could be very daunting. This is especially true if they are transitioning from their role of being a young-adult with just their own self to care for, to someone who would have dependents of their own that will look towards them whenever they have a financial need.
As someone who went through that same experience before starting my own family, I can deeply resonate with that notion.
And when I think back, the reason behind that seems to be simple: I was afraid of managing my finances, among other things.
What if I am not able to pay the bills on time?
What if my shopping habits cannot be curbed?
What if I drive myself so deep into the ground with debt that I am not able to recover?
Who will take care of my family then?
Those questions kept me awake at night for a long, long time, before I was able tell myself that until and unless I find an answer to them, I might not be able to start a family of my own. It was from there that I went on the path of getting finances in check. Once I understood the simple basics of managing my personal finances, I knew that none of those questions mattered anymore.
While the thought of personal finance management may sound grueling, the goal itself is quiet easy to achieve especially if you know what you are doing.
By getting on top of your finances and knowing your spending and budgeting like the back of your hand, you can ensure that your family gets to live comfortably and with the kind of lifestyle you want for them.
Start by Learning About Your Credit Report
It all starts with the basics.
If you earn a decent paycheck but spend more than half of it in debt repayments each month, then you clearly need to get your affairs in order. That is where learning about your credit report and taking important actions comes into play.
Think of the credit report as the atlas to explore your financial world, or in modern terms, the Google Maps to making your way to that happening neighborhood where you have your dinner reservations. The term “credit report” gets treated like it’s rocket science, but it actually is more like a guide when you start making your way through it.
Among other things, it will tell you about your account statuses, your debt and credit ratings, and the amount you owe to your credit accounts. By keeping tabs on this information, you will be able to make informed decisions about whether to get that big screen TV for the living room, or actually put that amount towards repaying some of your pressing debts.
Strike a Balance Between Savings, Budgeting, and Spending
Once you have the idea about your loan and credit card debts and exactly where you stand in terms of your finances, you will be able to devise a plan on how exactly you can maintain the poise to manage your family’s comfort and a credit report that is not a screenplay of how you broke your back.
You can put many popular saving mechanisms in play that could help you strike that perfect balance. As something which has worked for many, including me, you can go with the 50/20/30 rule.
The 50/20/30 rule is simple yet effective, which is quite evident from the very description that it presents for itself.
From your paycheck, you allocate 50% towards your needs. These include the very things your family cannot do without. For instance, your rent money/mortgage payments, your children’s school fees, the minimum payments on your credit cards, and your loan repayments.
20% of your paycheck should be allocated towards your savings/debt repayments. For instance, if you have debt and have made the minimum repayments on it, then add more amount into a relevant account to pay off additional chunks in terms of repayment. Any amount that is saved from here should then go towards your savings.
30% of your paycheck can then be put towards your wants. These would be your desire to purchase that new phone, get that new piece of furniture for your house, or going out for movies. Since you will have a significant portion of your paycheck allocated towards this aspect of life, you can ensure to support a great lifestyle for your family.
Lookout for Impulse Decisions That Could Have a Long-Term Impact
There is no ifs, ands or buts about it, you are adulting now. You have to manage today and plan for the future too.
This means that you can no longer give in to impulse purchases. I know, I was surprised too, when I first realized this, I automatically thought about the fact that you only live once.
When you did not have a family, buying that Fendi bag or that new PS4 console could be taken with a grain of salt even when you could have spent that money on home renovations or any other purchase that would have made the quality of life better for the residents of your home.
But now that you do lead a family of your own, you have to think of your home and its inhabitants as your first priority. Before you make impulse purchases, think about how they could affect your long-term finances.
Instead, go with what you learnt from your credit report and through your preferred spending and saving techniques, and start saving up for luxury purchases. That way, you’ll not feel guilty in case an emergency expense arises for your family right after your purchase, since in that way, you would not have spent money you did not have.
Master These Techniques for a While, and You’ll Feel Confident Enough to Start Your Family
By following these few techniques, you can ensure to put yourself on a path of stellar financial management that will help you with making great decisions all the way into your future.
This would have you sleep every night with the assurance that you are on the way of building a strong foundation for your family’s comfort, which in turn would give you all the confidence in the world to take steps towards achieving that lifelong dream of having a family of your own.
Remember, keeping a family happy will always take work but it is definitely worth it.
Regaining Financial Stability After a Divorce
Have you recently divorced or are you in the process of going through a divorce? If so, it can take its toll on you both mentally and financially. If you have kids, it can be hard to get by on less money with your spouse no longer contributing and looking for ways to get your life back on track is important. Here are a few ways that you can reshape your life and get back to living your best life once again.
Acquiring a Fill-in Loan
Living paycheck to paycheck or with limited funds can be a real challenge. If you’re struggling to pay your bills and simply put food on the table for your family, you need to find a reasonable solution to the financial strain. An unforeseen emergency, for example, can set you back financially and wreak havoc on your budget. If you’ve had less than perfect credit in the past, you may not be able to access a line of credit or get approval from your local bank or credit union. One option would be to utilize a monthly installment loan. This allows you to get the funds you need quickly and with far fewer credit criteria guidelines than most traditional loans. Qualifying is a rather simple and straightforward process. Typically, you’ll need:
- A valid checking or savings account
- Verification of employment or a solid history of steady monthly income
- Proof of residency
- Monthly budget and other financial obligations
- To provide your social security number
It all begins with responsible lending. This means showing that you’ve made positive changes to improve your credit report and you’ve paid off past debt. While late payments and past bankruptcies can cause your FICO score to drop, lenders of installment loans often overlook these blemishes, as long as you’re showing that you’re working to improve your financial lifestyle. A fill-in or emergency loan to tide you over until payday is a viable solution to preventing a financial disaster.
Getting Your Credit in Check
Being a divorcee means that your credit or FICO score has likely suffered a few blows over the past few months. This could be due to miscommunication with you and your ex in regards to paying your bills on time. It’s important that you follow all of the instructions set forth in your separation or divorce agreement in regards to who is paying what bill and when. It’s important that you take responsibility for your own bills to make sure that your credit isn’t affected. If you’re trying to rebuild your credit and you need help, reach out. A credit counselor will be able to guide you on how to budget for certain bills, how to lower your monthly payments and how to deal effectively with your creditors. Now is the best time to get your credit in check, especially to ensure your children’s future. This will give you the buying power that you need to apply for a mortgage, get a new vehicle loan and extend your credit limits further.
Downsizing Your Lifestyle
Any transition in life can lead us to analyze what we have and what we should purge or get rid of. Separating from a spouse is a good time to reconsider all of your possessions. Having a garage sale and donating unwanted items to charity are the first steps in making that change. Downsizing your lifestyle and eliminating clutter can also help you process your emotions easier. Not having constant reminders from your past that include furniture and items that you shared with your spouse can help you move past those feelings and make a little cash at the same time.
Finding Ways to Supplement Your Income
Being back to one income can be hard to adjust to, especially if your ex was the main breadwinner. If you’re not able to get a raise at work or a new job right away that pays more money, you’ll have to find a way to supplement your income. This could be through a work-at-home job or starting your own business that has low overhead and high profit. Making your own crafts and investing in a t-shirt screen printing business are a couple of ways to supplement your existing income.
Moving past a divorce isn’t easy. It takes an emotional and financial toll on everyone in the family and that takes time to heal from. Utilizing several methods to rebuild your financial lifestyle can be done starting now.
The Fastest Ways To Earn Money Online
Making money online is extremely easy and mainly because of how much work is demanded online. The idea of a nine to five is vastly becoming an antiquated way of doing business and making money.
There are am nay ways to make money nowadays online, and in the article, we will go over the best ways to make money online. And the best part of it is that you will be able to start making money today with someone these.
From Caesars casino games to affiliate marketing – the diversity in making money is almost becoming an endless possibility.
# 1 – Leverage The Apps For Money
This is quickly becoming one of the fastest ways to make money. You can use your phone today to do trading, and work, use apps like Uber to find people to drive around. Our smartphone shares not solely for listening to music or watching our facebook status, but they are also a great way to start generating about more income.
And the best thing about it is that almost everybody has a phone. So the idea that you cant amen money without a 9 to 5 is laughable.
# 2 – Use Existing Websites (Flip Them)
There are many websites out there that want to be purchased. Much like the real estate industry the website industry is significant. It is straightforward today to buy a site which gets traffic and the flip that website and earn more money.
This is area option for those who don’t have the technical skills to create a website. The best thing about this is that you will be able to build on something that already has been established.
# 3 – eBay (Sell Your Stuff)
Lastly eBay drop shipping is easily one of the best ways to start making money, and when you do it correctly, you can begin to earn a great deal of money. Millions of people are making money on, and this is because eBay is one of the biggest commence platforms on the internet.
You can see things you don’t want laying around your house, or you can find items that are cheap and then sell them at a higher price online.
This is not illegal, and there are many people why are doing this online. This is called drop shipping, and many businesses do themselves.
There are many ways to make money online all that it requires is that you have te drive and the determination to succeed.