The main benefit of loan consolidation is that you just have a single monthly payment to deal with.
The consolidation replaces multiple payments on different loans with a single payment on the consolidation loan.
Every borrower does not have impressive credit scores. Quite a few have low credit scores because of their past financial history. Some borrowers have limited or no credit history as well.
The problem with low credit scores is that traditional financial institutions and lenders generally do not lend to borrowers with “bad credit”. Hence, finding a loan for someone who has low credit scores may seem like a herculean task.
At Greendayonline, we appreciate the fact that life can spring up surprises at any moment. Sometimes, a financial emergency makes a loan the only visible source of cash.
Greendayonline also understands that some borrowers seeking a loan may not have very good credit scores. That is why we work with borrowers of all credit score ranges. We use alternative ways of evaluating a borrower’s profile that goes beyond pulling up credit scores.
In order to get a bad credit loan, first head over to the lender’s website. If you decide to work with Greendayonline, then head over to our website and go to the loan request form page Here, you will be asked to provide some basic information.
You only need details like your name, your address, a working phone number, and your checking account details. We ask for bank account details so that we can send the loan amount to that account if your loan is approved.
The second part of the loan request form will ask you for your employment status and details about your income. The purpose of gathering this information is to ascertain whether you will be able to repay the loan. The entire loan request form can be filled within a few minutes from the comfort of your home. The form is online and it can be submitted 24X7.
Once we receive all your information, we will evaluate your profile and give you an instant decision as to whether you qualify for the loan or not. If you do qualify, then we will send you the information about the loan amount that we can offer you as well as the terms and conditions of our loan offer.
Please note that Greendayonline does not use the conventional method of pulling up a borrower credit report which has been compiled by one of the major credit bureaus. Conducting such a hard pull or a hard check can lower the borrower’s credit score.
The lowering of score happens when multiple credit score pulls happen within a short period of time.
The logic behind this phenomenon is the fact that if a person’s credit report is being pulled up over and over by different lenders, then it means that the borrower is repeatedly seeking loans and is, therefore, in a precarious financial situation. The borrower does not have enough cash and is being compelled to borrow money.
Greendayonline conducts what is known as a soft check where it focuses on the borrower’s ability to repay back the loan by evaluating the level of income earned.
The borrower’s credit history is also evaluated to see if repayments were made on time in the past. Such soft credit checks do not lower the borrower’s FICO score. Only if the loan is approved and then accepted by the borrower will a hard credit check be conducted.
If the borrower has a reasonably good past record, then a lower interest rate might be offered.
Once a borrower is offered a loan, the details are usually sent via email. The borrower can go through all the details and then electronically sign the loan contract online. Everything moves quickly because the process is online. no need to search for a payday loan store near me.
When you evaluate the loan offer, you should carefully read through all the terms. You must understand the total cost of the loan. Do not simply fixate on the amount of monthly repayments.
The total cost of the loan is affected by the APR of interest rate offered, the term or duration of the loan, and the monthly payment. If a loan origination fee is being charged, then it indirectly increases your interest rate and the cost of the loan.
You might wonder that by opting for longer loan duration, you can bring down your monthly payments. However, remember that since you will end up making repayments for a longer time, the total cost of the loan might go up as a result. Every borrower will, therefore, have to find the right balance between the duration and the ability to make monthly repayments based on his/her financial situation.
There are multiple types of loans which online lenders are willing to offer to borrowers who do not have a good credit score.
The first type of loan is a payday loan. Payday loans are short-term loans that are usually paid back within a few weeks. The idea is to borrow money to tide over an immediate financial emergency and repay the loan by the next payday.
Since payday loans are short-term and high-risk, they have high interest rates associated with them. The fees and penalties are also high. Hence, payday loans should only be used as a short-term solution and not a long-term financing option.
The second type of loan is a title Loan. These are loans which are disbursed against the title of your car as collateral. So, if you happen to own a car and are in need of some urgent cash, then you can pledge the title of the car in order to get some cash. You can then pay off the title loan via repayments (depending on the schedule that the borrower offers) and get your title released.
The third type of loan for bad credit is an installment loan. These are loans which are repaid through monthly or regular installments. Such loans are a good fit for situations where you need to finance some purchase over a longer period of time. Installment loans can run for years. Such loans are disbursed in higher amounts as well.
Another type of loan you can avail of is a cash advance. You can simply get an advance using your credit card and then repay it back as soon as you can. Every credit card has its own policies and fees related to cash advances, but you normally can withdraw some part of the available credit limit in cash. The fees associated with cash advances are quite high. But, they are still lower than payday loans.
If you borrow a loan from Greendayonline and repay it back on time, then we can report such positive and responsible behavior to major credit bureaus.
They can incorporate such transactions when they compile your report and your credit scores can get a slight boost. So, yes, it is possible to rebuild your bad credit by working with Greendayonline and being responsible with your financial decision-making.
A good example is short term personal loans that are offered to borrowers who have bad or no credit. When you search for bad credit loans online, you find various institutions offering them, which include online loan providers, credit unions, banks, etc
Short term lenders have many options — a lot of lenders offer cash guaranteed but that ease comes with some points you need to pay attention to. The maybe come the next business day but these loans come with very high interest rates. It is possible for such loans to have interest as high as 600%.
On the other hand, banks make it very difficult to get a loan if you have a bad credit score. In the case of short term personal loans, you have a better chance because credit checks are minimal. Other considerations when you are looking for loans with guaranteed approval are being 18 years old and having sufficient income to repay the loan. You can get a cash loan on the same business day.
When you have a loan with monthly payments it is better to use an installment loan. The advantages of these loans personal are less interest. Instead of twice-monthly payments, you roll in into one payment. This gives you more business days to prepare.
The fact is that we would all like to have savings. Unfortunately more than half of Americans have less than $600 in savings. Also most of those have a FICO credit score of less than 600 which is bad credit territory.
If you are in this category of bad credit where do you go looking for money? This is where bad credit lenders like Greenday Online can help when you are looking for a loan with no credit check.
If you are borrowing a bad credit loan online, then you need to plan out your cash flows for the duration of the loan. The duration will generally not be very long unless you are going for an installment loan with a multi-year term. Hence, the adjustments that you need to make in your financial life will only be for a few weeks or months.
You need to perhaps re-evaluate your expenses in order to ensure that enough money from your salary is left to service the loan that you have borrowed. Cutting out non-essential purchases may be necessary if you are facing a cash crunch.
You can also increase your income by working part-time or finding work online as a freelancer. The idea is to have enough money to be able to live and pay-off your loan.
Short-term loans for bad credit can have stiff penalties and high-interest costs. So, you do not want to fall behind when making repayments. Otherwise, it may become very difficult to come out of debt. There is always payday loan consolidation should you find yourself here.
If you work with a credible and reputed lender, then it is quite safe to borrow a bad credit loan online. As with everything you do, you need to perform your own due diligence. You must find out how reputed your online lender of choice is.
Since how many years has the lender been operating? Is the lender licensed to operate in your state? Call up the customer service and evaluate how professional the lender is. Is the lender patiently answering all your questions? You can also inquire if the lender offers credit counseling services to educate you about debt elimination.
Many online lenders for bad credit use catch phrases like “no hard check”, “no credit”, and “instant cash” to entice borrowers who have been struggling to get loans because of a negative credit history. Some of those lenders may not be professional or legal. Your research and due diligence should prompt you to avoid working with such lenders.